Picture a self-driving car maneuvering through a busy city, recognizing people, cars, traffic signals, and road lines instantly, and charting its actions (to stop, brake, or turn) accordingly. For this to work smoothly, the car must have been trained on a dataset of all those objects, learning what they look like through labels attached to them. Therefore, it won’t be wrong to say that data annotation- the act of labeling elements in a dataset – forms the foundation of an efficient AI/ML solution.

To train these AI/ML models, companies can use two methods –They can obtain services from a large group of people online, typically a third party unrelated to the business seeking results (crowdsourcing). On the other hand, they can hire experts who are skilled in labeling data with precision (professional data annotation services).

Each choice has its own pros and cons. Let’s try to understand which one is best for you!

Crowdsourcing data annotation

Crowdsourcing data annotation refers to the process of outsourcing the task of labeling or tagging large amounts of data to a distributed group of individuals, often through online platforms. 

For instance, imagine a company developing self-driving cars. They have a vast collection of road images that need to be labeled to identify things like pedestrians, traffic signs, and lanes. Instead of their staff manually labeling each image, they can use platforms like Amazon Mechanical Turk or Appen (formerly known as Figure Eight). These platforms allow them to distribute this task to a crowd of remote workers who mark and label objects in the images. The aggregated results from multiple workers help ensure timely annotated datasets for training self-driving algorithms.

In essence, crowdsourcing data annotation enables organizations to leverage the collective efforts of a distributed workforce to handle large-scale data labeling tasks in a more time-efficient manner.

Advantages:

  • Cost-effectiveness– Crowdsourcing platforms are often free or charge lower rates per task compared to traditional staffing agencies. Furthermore, these platforms enable businesses to sidestep the overhead costs linked with hiring and managing employees.
  • Scalability- Crowdsourcing platforms offer seamless scalability. They can swiftly adapt to your project’s demands. All you need to do is upload your data, and annotators can then choose tasks aligned with their interests and start working.
  • Diverse perspectives– Crowdsourcing brings together a diverse group of individuals with varied backgrounds and perspectives. This diversity can be a boon when dealing with subjective or nuanced data annotation tasks. For tasks where multiple viewpoints are valuable, such as sentiment analysis, the crowd’s diversity can be a considerable advantage.
  • Flexibility– Unlike traditional in-house teams, crowdsourced workers are often distributed across different time zones and can work on tasks around the clock. This round-the-clock availability can be advantageous for projects that require continuous annotation or those with tight deadlines. It allows you to maintain a steady workflow and potentially expedite project completion.

Challenges:

  • Quality issue- Subjective tasks, like sentiment analysis or image interpretation, can be prone to disagreements among crowd workers. Different individuals might interpret the same data differently, leading to discrepancies in annotations.
  • Data privacy- Sharing sensitive or proprietary data with a broad crowd raises valid concerns about data privacy and potential leaks. Ensuring that the data is anonymized and properly protected during the annotation process is crucial.
  • Lack of control- Crowdsourcing companies can provide guidelines to the annotators but have no direct control over their actions. Ensuring consistent adherence to guidelines is challenging, and variations in annotators’ interpretations can lead to unpredictable outcomes. 

Outsourcing data annotation services 

This involves delegating the task of annotating or labeling data to a third-party company or service provider. This is often done to streamline operations and enhance efficiency in managing and preparing large datasets for various purposes.

For example, imagine a medical research institution conducting a study that requires the accurate labeling of thousands of medical images. Instead of allocating their in-house resources to annotate these images, they might opt to outsource this task to a specialized data annotation service provider. These providers have the expertise and tools necessary to efficiently label the images with the required labels.

In this scenario, the research institution benefits from the proficiency of the external service provider, allowing its internal team to focus on core research activities.

Advantages:

  • Expertise and consistency: Professional annotators typically have specialized training and experience, leading to higher-quality and more consistent annotations.
  • Domain-specific knowledge: For complex tasks that require domain-specific knowledge, such as medical image analysis, professional annotators can offer insights that a general crowd might lack.
  • Quality assurance: Reputable annotation services often have robust quality assurance processes in place, which minimize errors and improve the overall reliability of annotations.
  • Data security: They have well-established data security protocols to protect sensitive information. Moreover, they mention these terms on their contract papers.

Challenges:

  • Costs: Hiring a professional service provider can be expensive, especially for larger projects. This cost can sometimes outweigh the benefits, particularly for startups or smaller businesses.
  • Flexibility and scalability: While some professional service providers might offer scalability, it might not match the flexibility of crowdsourcing for rapidly changing project requirements.
Crowdsourcing versus Outsourcing data annotation services 
FeatureCrowdsourcingHiring a Service Provider
Source of workforceWide pool of contributors from the crowdIndividual or company professionals
ExpertiseVariable expertise levelsTypically specialized expertise
ControlLimited control over contributors’ qualityMore control over outcome quality
CostOften cost-effectiveCan be more expensive, but negotiable
FlexibilityMay offer diverse solutionsCan adapt to specific needs
TimePotentially longer turnaround timeGenerally predictable timelines
ManagementRequires platform or project managementService provider manages the project
ScalabilitySuitable for large data volumesMore organized, with planned scaling possibilities 
CommunicationMay involve communication challengesDirect communication with provider
ConfidentialityPotential security and privacy concernsCan sign NDA & perform regular monitoring for threats
Quality assuranceMay require validation and filteringProviders often ensure quality

What’s best for you and why?

Choosing between crowdsourcing and a professional data annotation service provider depends on various factors, each with its own set of advantages and disadvantages. The best choice for you would depend on your specific project requirements, budget, timeline, data complexity, and quality standards. Here’s a guideline to help you decide:

  • Nature of the task- For tasks that require a high level of expertise, specialized knowledge, or subjective judgment, professional services might be more suitable. For more straightforward and repetitive tasks, crowdsourcing could be sufficient.
  • Budget- Your budget will play a significant role in your decision. Crowdsourcing is often the more cost-effective option, but remember that quality can sometimes be compromised.
  • Data sensitivity-  If your data is sensitive or confidential, professional services are likely a safer bet due to their established security measures.
  • Scale and speed- If you have a large project with tight deadlines, crowdsourcing’s scalability and speed might be the deciding factors.
  • Quality assurance- If precision and consistency are paramount, professional services offer better quality control mechanisms.
  • Long-term vs. Short-term- If you anticipate a long-term need for annotations, investing in building a relationship with a professional service might be more beneficial than relying on ad-hoc crowdsourcing.

Wrapping up

Annotating data is not enough. It should be high-quality and accurate for AI/ML tools to work efficiently. So, as a business owner, remember to choose quality over any other factor while training your systems. You can outsource data support services or just consider a hybrid approach that combines the strengths of both crowdsourcing and professional services to strike the optimal balance for your unique project.

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Brown Walsh is a content analyst, currently associated with SunTec India- a leading multi-process IT outsourcing company. Over a ten-year-long career, Walsh has contributed to the success of startups, SMEs, and enterprises by creating informative and rich content around data-specific topics, like data annotation, data processing, and data mining services. Walsh also likes keeping up with the latest advancements and market trends and sharing the same with his readers.

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