#Software Product Development Outsourcing

[abcasys]

Strategic Outsourced Product Development Solutions for Innovation

[xbsoftware]

In the world of software development, launching a successful digital product often hinges on starting small and learning fast. Traditionally, the Minimum Viable Product (MVP) approach has guided startups and enterprises alike. However, a newer concept – the Minimum Viable Experience (MVE) – is gaining traction for delivering not just functionality, but a complete and satisfying user experience from day one.

At XB Software, we’ve seen firsthand how selecting the right development strategy can impact a product’s success. So, let’s dive into the key differences between MVP and MVE and explore how choosing the right approach can transform your product journey.

[mukeshblogs]

Strawberry Infotech is a leading IT company with a legacy of over 15 years in delivering innovative and high-performance software solutions. With a strong presence in the industry, we specialize in software development, enterprise solutions, cloud computing, IT consulting, and digital transformation services. Our expertise enables businesses to streamline operations, enhance productivity, and achieve sustainable growth through technology-driven solutions.

At Strawberry Infotech, we prioritize innovation, quality, and customer satisfaction, ensuring that our solutions align with the ever-evolving technological landscape. Our team of skilled professionals leverages the latest tools and methodologies to develop scalable and secure applications tailored to unique business needs. Whether it's modernizing legacy systems, integrating advanced technologies, or optimizing IT infrastructure, we empower organizations to stay ahead in the digital era. Partner with us and experience the future of technology-driven success.

[tech4app]

Best outsourcing product development

It focuses on innovation and quality, providing end-to-end product development services right from concept to deployment and maintenance. The professionals here have in-hand expertise in the use of cutting-edge technologies and best practices to bring forth world-class solutions that meet the specific needs of clients in a varied array of industries. Binary Informatics is a reliable outsourcing partner dedicated to agility in delivering valuable products to businesses on time and within budget. With many successful projects in its repertoire, Binary Informatics is the one-stop solution for organizations looking for dependable outsourcing solutions in product development.

Read more: Best outsourcing product development

[appletechx]

Outsource to Outperform: 5 Reasons Why Software Development Outsourcing Reigns Supreme

In today's hyper-competitive business environment, staying ahead of the curve is not just a goal but a necessity. Nowhere is this more evident than in the realm of software development, where companies are under constant pressure to innovate, adapt, and deliver high-quality products and services to meet evolving customer demands. In this landscape, one strategy has emerged as a game-changer for businesses looking to outperform their competitors: software development outsourcing. 

Outsourcing software development tasks to external partners has become increasingly popular in recent years, and for good reason. From cost savings to access to specialized expertise, there are numerous advantages to be gained from outsourcing software development. In this comprehensive blog post, we'll explore five key reasons why software development outsourcing reigns supreme in today's digital age.

1. Cost Efficiency:

One of the most compelling reasons why companies choose to outsource software development is cost efficiency. Maintaining an in-house development team can be prohibitively expensive, with costs including salaries, benefits, office space, equipment, and training. By outsourcing software development to external partners, companies can significantly reduce these expenses.

Outsourcing providers, particularly those located in regions with lower labor costs, can offer competitive pricing without compromising on quality. Additionally, outsourcing eliminates the need for upfront investments in infrastructure and technology, as these resources are typically provided by the outsourcing partner. Overall, outsourcing software development allows companies to achieve cost savings while still receiving high-quality, reliable solutions.

2. Access to Specialized Expertise:

In today's rapidly evolving technological landscape, access to specialized expertise is crucial for success. Outsourcing software development provides companies with access to a diverse talent pool of skilled professionals, including developers, designers, architects, and engineers.

Outsourcing partners often have extensive experience working on a wide range of projects across various industries, giving them valuable insights and expertise. Whether it's web development, mobile app development, cloud computing, or emerging technologies like artificial intelligence and blockchain, outsourcing providers can offer specialized skills and knowledge tailored to specific project requirements.

By leveraging the expertise of outsourcing partners, companies can ensure that their software projects are completed efficiently, effectively, and with the latest technological advancements in mind.

3. Flexibility and Scalability:

Flexibility and scalability are essential considerations for businesses of all sizes. Outsourcing software development offers companies the flexibility to scale their development resources up or down as needed, depending on project requirements, timelines, and budgets.

Outsourcing providers can quickly allocate additional resources or adjust project scopes to accommodate changes in workload or priorities. Whether it's scaling up to meet tight deadlines or scaling down during quieter periods, outsourcing allows companies to adapt to fluctuating demands without the hassle of hiring and training new employees.

Moreover, outsourcing enables companies to access a wide range of skills and expertise on-demand, without the constraints of geographical limitations or internal hiring processes. This scalability empowers companies to pursue growth opportunities, explore new markets, and respond swiftly to evolving customer needs.

4. Focus on Core Competencies:

Focusing on core competencies is essential for driving business growth and maintaining a competitive edge. Outsourcing non-core functions such as software development allows companies to concentrate their resources and efforts on strategic initiatives that align with their core business objectives.

By outsourcing software development tasks to external partners, companies can free up valuable time, resources, and talent that can be redirected towards innovation, customer engagement, and revenue-generating activities. This strategic alignment of resources enables companies to optimize their operational efficiency, enhance productivity, and drive long-term business success.

Outsourcing also fosters collaboration and knowledge sharing between internal and external teams, leading to synergistic outcomes and mutual success. By focusing on their core competencies and partnering with outsourcing providers to handle complementary tasks, companies can gain a competitive advantage in today's fast-paced business environment.

5. Accelerated Time-to-Market:

In today's dynamic market landscape, speed is of the essence. Accelerated time-to-market can give companies a significant competitive advantage, allowing them to capture market share, respond to customer feedback, and stay ahead of the competition.

Outsourcing software development enables companies to expedite the development process, reduce time-to-market, and deliver products and services faster than their competitors. Outsourcing partners leverage established development methodologies, agile practices, and collaborative tools to streamline the development process, optimize resource allocation, and ensure timely delivery of high-quality solutions.

Moreover, outsourcing allows companies to tap into a global talent pool, accessing skilled professionals and specialized resources from diverse geographic locations. This global reach enables round-the-clock development, continuous collaboration, and rapid iteration, resulting in shorter lead times, faster feedback loops, and improved responsiveness to market changes.

In conclusion, software development outsourcing offers numerous advantages for companies looking to outperform their competitors in today's digital age. From cost efficiency to access to specialized expertise, flexibility, focus on core competencies, and accelerated time-to-market, outsourcing can help companies achieve their strategic objectives, drive innovation, and gain a competitive edge in the marketplace.

By leveraging the benefits of software development outsourcing, companies can optimize their operations, enhance their capabilities, and position themselves for long-term success in an increasingly competitive business environment. Whether you're a startup, a small business, or a large enterprise, outsourcing software development can be a valuable strategy for achieving your business goals and staying ahead of the curve.

[wseinfratech]

Unfolding Quality Assurance and its processes This blog discusses the QA process, how it is different from Quality Control and its 6 stages in a product development.

[zennaxxtech]

Creating a SaaS product from scratch involves defining a unique value proposition, conducting market research, assembling a skilled team, and adopting an agile development approach. Emphasize scalability, user feedback, and a robust marketing strategy for a successful launch and continuous improvement. It's a dynamic journey of innovation and strategic planning.

Focus on scalability and user feedback throughout the development cycle.

Contact us for Seamless SaaS product development.

[i4technolab]

Microsoft Excel is an extensively used tool in the financial business for doing sophisticated calculations, analyzing data, and producing business reports. Because standard Excel software can only help with basic operations, businesses require a platform that can extend Excel functionality and boost business productivity. This is where Excel add-ins development comes into play.

[buzzybrains-software]

Navigating the Tech Tide - India's AI and Software Development Landscape

Introduction

India, a kaleidoscope of innovation, is witnessing a dynamic shift in its technological landscape, prominently marked by the emergence of machine learning and Artificial Intelligence. In this article, we unravel the vibrant tapestry of India's tech evolution, focusing on the robust growth of AI and software development companies.

The Surging Tide of AI in India

Recent years have seen an unprecedented surge in adopting artificial intelligence (AI) across diverse industries. Some of the leading AI and machine learning development company in India are at the forefront, orchestrating groundbreaking solutions that redefine the conventional norms of technology. This tech uprising is steering India into a new era of possibilities.

Once confined to labs and sci-fi novels, AI is now an indispensable tool in sectors ranging from healthcare to finance. Companies specializing in AI development, such as those silently innovating like BuzzyBrains, are spearheading a technological renaissance. The surge in AI is not merely about automating tasks but about unlocking the latent potential of data, fostering more intelligent decision-making.

Tailoring Tech: The Role of Custom Software Development

In the ever-evolving realm of technology, the concept of one-size-fits-all is fading. Top-ranked custom software development company in India are weaving a narrative of tailored solutions where precision meets versatility. These companies, including unsung heroes like BuzzyBrains, are not just code architects but solution tailors. They craft software that seamlessly integrates into the unique fabric of each business, optimizing efficiency and user experience.

As businesses evolve, so do their software needs. Custom software development is akin to creating a bespoke suit, ensuring a perfect fit that enhances the wearer's individuality.

Breeding Ideas: The Rise of Product Development Companies

Beyond the code and algorithms, there's a surge in companies dedicated to birthing ideas into tangible products. The leading product development company in India are becoming integral players in the global market, contributing to India's reputation as a tech powerhouse. The cradle of innovation is now a launchpad for products that resonate globally.

India's Tech Tapestry Unraveled

Within this burgeoning tech tapestry, many companies are contributing to the orchestration of progress. The Indian tech scene is not a monolith; it's a vibrant ecosystem where ideas sprout, technologies converge, and innovation knows no bounds.

From bustling startups to established giants, each entity adds a unique thread to the intricate tapestry of India's tech narrative. It's not just a competition; it's a collaboration where the collective goal is progress. 

Adapting to Change

The impact of these tech advancements extends beyond boardrooms and algorithms. It's a societal shift, a metamorphosis in approaching problems and solutions. Adapting to change is no longer an option but a necessity in this era of perpetual evolution.

The adaptability quotient is a defining feature of the Indian tech community. Companies navigate through uncertainties not with trepidation but with anticipation, seeing each challenge as an opportunity to evolve. This adaptability positions India as a global tech leader, a nation capable of keeping pace with change and setting the rhythm.

Tech's Transformative Touch

Tech's transformative touch isn't just about business efficiency but social empowerment. As India embraces a more digitally connected future, the ripple effects are felt in education, healthcare, and governance. 

In education, AI is personalizing learning experiences. In healthcare, technology is bridging gaps and enhancing accessibility. In governance, data-driven decisions are fostering transparency. 

Embracing the Unknown

The beauty of India's tech evolution lies in its ability to embrace the unknown. The ever-shifting landscape challenges companies to innovate continually, creating a future where uncertainties are opportunities. This adaptability is the heartbeat of the Indian tech surge, propelling the nation into uncharted territories with confidence.

Conclusion

As we navigate the currents of technological evolution, companies like BuzzyBrains stand as silent architects of change. In the conclusion, we glimpse the role of such entities, including BuzzyBrains, in shaping the digital future. It's not just about companies; it's about a collective journey toward progress.

[softlabsgroup05]

Software companies in Mumbai in 2022/23

A software company is a business entity that focuses on developing, distributing, and maintaining software solutions. These companies operate in the software industry and can engage in various activities related to software, which might include designing, developing, programming, testing, and deploying software products.

Key Elements of a Software Company:

Development: This involves creating software through a series of coding and programming tasks, using various programming languages and development frameworks.

Testing: Software companies conduct thorough testing of software to ensure it functions correctly, is user-friendly, and is free of bugs.

Distribution: They also manage the distribution of the software to consumers, which can occur through physical means (e.g., via CDs or DVDs) or digital channels (e.g., via downloads or cloud-based platforms).

Maintenance: Ongoing maintenance and updates of software products to ensure they remain secure, efficient, and effective in meeting user needs.

Services: Some software companies also provide services such as consulting, customization, and support related to software products.

Sales and Marketing: This involves selling software products to customers and executing various marketing strategies to promote their products and services.

Types of Software Companies:

Product-Based: Companies that create software products which they sell to customers. Examples include Microsoft, Adobe, and Oracle.

Service-Based: Companies that provide services related to software development to other companies, such as custom software development, system integration, and consulting. Examples include Accenture and Capgemini.

Hybrid: Companies that engage in both product development and service provision. They create their products and offer software-related services to other businesses.

Top software company in Mumbai

Softlabs Group

We transform your business with powerful and adaptable digital solutions that satisfy the needs of today and unlock the opportunities for tomorrow.

We are one of the most trusted Software Development Outsourcing Companies in India with a Global Market presence of more than 20 years. We build custom-made software applications to cater for the needs of global enterprises, startups, product companies, and agencies. We have been associated with thousands of brands over the years and have guaranteed success with our brand-focused software development services. Our emphasis is to make business value for our clients using innovative ideas along with quick execution.

We are a software development company having specialized teams, and highly qualified and experienced IT professionals who can deliver the best software solution to a spread of businesses across different industries. With our innovative digital solutions, we help your business achieve new heights and grow exponentially to maximize profits.

Wipro

Wipro is a leading IT, consulting and business process services company with over 160,000 dedicated employees serving clients across six continents. Wipro helps companies innovate and adapt to the digital world by leveraging their expertise in areas like cloud, hyper-automation, cybersecurity, and more. Headquartered in Bengaluru, India, Wipro has over 50+ offices in Mumbai and other major cities in India.

TCS

Tata Consultancy Services, or TCS, is an Indian multinational information technology services and consulting company headquartered in Mumbai, India. TCS offers a consulting-led, cognitive-powered, integrated portfolio of IT, business, and engineering services, and solutions. With over 488,000 consultants in 46 countries, TCS helps companies in their growth and transformation journeys through automation, scale, and innovation.

Infosys

Infosys is a global leader in next-generation digital services and consulting. Headquartered in Bengaluru, India, Infosys has over 240,000 employees and offices in over 50 cities across the world including several offices in Mumbai. Infosys enables clients across 50+ countries to navigate their digital transformation by providing end-to-end services in areas like cloud, data analytics, user experience, and more. Infosys believes that software and technology are great equalizers and multipliers, and are working to build a more equitable, just, and sustainable future with technology.

Zensar Technologies

Zensar Technologies is a leading software and IT services company headquartered in Mumbai. They provide comprehensive digital and technology solutions to businesses around the world. With over 9,000 employees across 20 offices globally, Zensar helps its clients succeed in the digital world through innovative solutions around cloud, automation, API and more.

[eov-blogs]

A basic introduction to Next.js

What is Next.js? 

Next.js is a latest and popular React framework for building full-stack web applications. You use React Components to build user interfaces, and Next.js for additional features and optimizations. Next.js also abstract and automatically configures tooling needed for React, like bundling, compiling, and more. This allows you to focus on building your application instead of spending time with configuration.     

Whether you’re an individual developer or part of a larger team, Next.js can help you build interactive, dynamic, and fast React applications. 

What are the benefits of using Next.js over React?  

Faster Initial Page Loads: Next.js supports server-side rendering (SSR), which means that the initial HTML of your pages is rendered on the server before being sent to the client. This can significantly improve the performance of your pages, especially for SEO and for users with slow internet connections.

Static site generation: Next.js also supports static site generation (SSG), which means that you can pre-render your pages at build time. This can further improve the performance of your pages, as the client will not have to wait for the pages to be rendered on the server. 

Improved SEO: Because Next.js supports SSR and SSG, search engines can easily crawl and index your content, leading to better search engine rankings compared to client-side-rendered applications. SSR also makes your pages more SEO-friendly, as search engines can index the rendered HTML. This can help your pages rank higher in search results. 

Built-in routing: Next.js comes with a file-based routing system, which makes it easy to create complex and dynamic routes without the need for additional routing libraries. In React, you’d typically need a separate routing library like React Router. 

Automatic Code Splitting: Next.js automatically splits your JavaScript code into smaller chunks that are loaded only when needed. This reduces the initial load time and helps improve performance.  

API Routes: You can create API endpoints directly within your Next.js application using the /pages/api directory, simplifying serverless API development. 

Hot Module Replacement (HMR): Next.js supports HMR, which allows you to see changes in your code without a full-page refresh during development. 

Internationalization (i18n): Next.js offers built-in support for internationalization, making it easier to create multilingual websites. 

Image Optimization: It includes automatic image optimization, where images are optimized and served in various formats (e.g., WebP) for better performance. 

What are the additional Key Features of Next.js?  

Hot Module Replacement (HMR): Next.js supports HMR, allowing for instant code changes during development without a full-page refresh. This speeds up the development process and enhances the developer experience.

Production-Ready Optimizations: Next.js includes built-in optimizations for production deployments, such as automatic code splitting, asset optimization, and serverless deployments. This ensures that your application is production-ready with minimal effort. 

Data Fetching: Next.js provides multiple methods for data fetching, including getServerSideProps, getStaticProps, and getInitialProps, making it easy to fetch data on both the server and the client side. 

Internationalization: Next.js offers built-in support for internationalization, making it easier to create multilingual applications. 

Environment Variables: You can use environment variables in Next.js to manage configuration options securely and efficiently. 

CSS Support: Next.js allows you to use various CSS solutions, including CSS Modules, styled-components, and more. It also offers automatic CSS code splitting. 

Middleware Support: You can use middleware functions to customize the behavior of the server, making it versatile for handling various scenarios and authentication. 

Error Handling: Next.js provides robust error handling capabilities, including custom error pages and error boundary components to gracefully handle errors in your application. 

Community and Ecosystem: Next.js has a thriving community, a rich ecosystem of plugins and extensions, and is backed by Vercel, a cloud platform for deploying Next.js applications, which simplifies deployment and scaling. 

Automatic Static Optimization: Next.js automatically optimizes the delivery of static assets like images, fonts, and JavaScript files to improve performance. 

Conclusion 

Next.js is a React framework that offers advantages over plain React, including server-side rendering (SSR), static site generation (SSG), automatic code splitting, SEO-friendliness, and built-in features for routing, CSS, and API handling. It’s suitable for a wide range of applications, from static websites to dynamic web apps, eCommerce sites, content management systems, and more. Next.js simplifies development tasks, improves performance, and enhances SEO, making it a valuable tool in the React ecosystem. 

In our subsequent blogs, we will cover more on how we have sought help of Next.js to deliver software products to our clients. If you are looking for app development partners, feel free to contact our team now!

[xbsoftware]

Product development is the process of creating or improving a product or service, from the initial idea to the final launch. It can be a lot of fun, but also a lot of work. Did you ever think that product development is like cooking a meal? You need to have a good recipe with consequent steps, fresh ingredients that you know how to cook, and the right tools that will help you to simplify and speed up the overall process. But you also need to be creative, flexible, and willing to experiment. Sometimes, you might end up with a masterpiece that everyone loves. Other times, you might end up with a disaster that nobody wants to eat, learn from your mistakes, and try again. See, it can be hard to tell whether it is about cooking or product development.

On a serious note, product development is not a piece of cake. It takes a lot of hard work, brainstorming, and collaboration to turn your vision into reality. Therefore, in our article, we decided to cover this process in detail and create a how-to guide with meaningful tips, so let’s start!

[lisakeller22]

Why Businesses Outsource Software Product Development?

Know the advantages of outsourcing software product development for businesses including cost saving, experienced developers, speed up time-to-market with global talent, and more.

[tangentiallly]

One way to spot patterns is to show AI models millions of labelled examples. This method requires humans to painstakingly label all this data so they can be analysed by computers. Without them, the algorithms that underpin self-driving cars or facial recognition remain blind. They cannot learn patterns.

The algorithms built in this way now augment or stand in for human judgement in areas as varied as medicine, criminal justice, social welfare and mortgage and loan decisions. Generative AI, the latest iteration of AI software, can create words, code and images. This has transformed them into creative assistants, helping teachers, financial advisers, lawyers, artists and programmers to co-create original works.

To build AI, Silicon Valley’s most illustrious companies are fighting over the limited talent of computer scientists in their backyard, paying hundreds of thousands of dollars to a newly minted Ph.D. But to train and deploy them using real-world data, these same companies have turned to the likes of Sama, and their veritable armies of low-wage workers with basic digital literacy, but no stable employment.

Sama isn’t the only service of its kind globally. Start-ups such as Scale AI, Appen, Hive Micro, iMerit and Mighty AI (now owned by Uber), and more traditional IT companies such as Accenture and Wipro are all part of this growing industry estimated to be worth $17bn by 2030.

Because of the sheer volume of data that AI companies need to be labelled, most start-ups outsource their services to lower-income countries where hundreds of workers like Ian and Benja are paid to sift and interpret data that trains AI systems.

Displaced Syrian doctors train medical software that helps diagnose prostate cancer in Britain. Out-of-work college graduates in recession-hit Venezuela categorize fashion products for e-commerce sites. Impoverished women in Kolkata’s Metiabruz, a poor Muslim neighbourhood, have labelled voice clips for Amazon’s Echo speaker. Their work couches a badly kept secret about so-called artificial intelligence systems – that the technology does not ‘learn’ independently, and it needs humans, millions of them, to power it. Data workers are the invaluable human links in the global AI supply chain.

This workforce is largely fragmented, and made up of the most precarious workers in society: disadvantaged youth, women with dependents, minorities, migrants and refugees. The stated goal of AI companies and the outsourcers they work with is to include these communities in the digital revolution, giving them stable and ethical employment despite their precarity. Yet, as I came to discover, data workers are as precarious as factory workers, their labour is largely ghost work and they remain an undervalued bedrock of the AI industry.

As this community emerges from the shadows, journalists and academics are beginning to understand how these globally dispersed workers impact our daily lives: the wildly popular content generated by AI chatbots like ChatGPT, the content we scroll through on TikTok, Instagram and YouTube, the items we browse when shopping online, the vehicles we drive, even the food we eat, it’s all sorted, labelled and categorized with the help of data workers.

Milagros Miceli, an Argentinian researcher based in Berlin, studies the ethnography of data work in the developing world. When she started out, she couldn’t find anything about the lived experience of AI labourers, nothing about who these people actually were and what their work was like. ‘As a sociologist, I felt it was a big gap,’ she says. ‘There are few who are putting a face to those people: who are they and how do they do their jobs, what do their work practices involve? And what are the labour conditions that they are subject to?’

Miceli was right – it was hard to find a company that would allow me access to its data labourers with minimal interference. Secrecy is often written into their contracts in the form of non-disclosure agreements that forbid direct contact with clients and public disclosure of clients’ names. This is usually imposed by clients rather than the outsourcing companies. For instance, Facebook-owner Meta, who is a client of Sama, asks workers to sign a non-disclosure agreement. Often, workers may not even know who their client is, what type of algorithmic system they are working on, or what their counterparts in other parts of the world are paid for the same job.

The arrangements of a company like Sama – low wages, secrecy, extraction of labour from vulnerable communities – is veered towards inequality. After all, this is ultimately affordable labour. Providing employment to minorities and slum youth may be empowering and uplifting to a point, but these workers are also comparatively inexpensive, with almost no relative bargaining power, leverage or resources to rebel.

Even the objective of data-labelling work felt extractive: it trains AI systems, which will eventually replace the very humans doing the training. But of the dozens of workers I spoke to over the course of two years, not one was aware of the implications of training their replacements, that they were being paid to hasten their own obsolescence.

— Madhumita Murgia, Code Dependent: Living in the Shadow of AI

[mariacallous]

AI’s energy use already represents as much as 20 percent of global data-center power demand, research published Thursday in the journal Joule shows. That demand from AI, the research states, could double by the end of this year, comprising nearly half of all total data-center electricity consumption worldwide, excluding the electricity used for bitcoin mining.

The new research is published in a commentary by Alex de Vries-Gao, the founder of Digiconomist, a research company that evaluates the environmental impact of technology. De Vries-Gao started Digiconomist in the late 2010s to explore the impact of bitcoin mining, another extremely energy-intensive activity, would have on the environment. Looking at AI, he says, has grown more urgent over the past few years because of the widespread adoption of ChatGPT and other large language models that use massive amounts of energy. According to his research, worldwide AI energy demand is now set to surpass demand from bitcoin mining by the end of this year.

“The money that bitcoin miners had to get to where they are today is peanuts compared to the money that Google and Microsoft and all these big tech companies are pouring in [to AI],” he says. “This is just escalating a lot faster, and it’s a much bigger threat.”

The development of AI is already having an impact on Big Tech’s climate goals. Tech giants have acknowledged in recent sustainability reports that AI is largely responsible for driving up their energy use. Google’s greenhouse gas emissions, for instance, have increased 48 percent since 2019, complicating the company’s goals of reaching net zero by 2030.

“As we further integrate AI into our products, reducing emissions may be challenging due to increasing energy demands from the greater intensity of AI compute,” Google’s 2024 sustainability report reads.

Last month, the International Energy Agency released a report finding that data centers made up 1.5 percent of global energy use in 2024—around 415 terrawatt-hours, a little less than the yearly energy demand of Saudi Arabia. This number is only set to get bigger: Data centers’ electricity consumption has grown four times faster than overall consumption in recent years, while the amount of investment in data centers has nearly doubled since 2022, driven largely by massive expansions to account for new AI capacity. Overall, the IEA predicted that data center electricity consumption will grow to more than 900 TWh by the end of the decade.

But there’s still a lot of unknowns about the share that AI, specifically, takes up in that current configuration of electricity use by data centers. Data centers power a variety of services—like hosting cloud services and providing online infrastructure—that aren’t necessarily linked to the energy-intensive activities of AI. Tech companies, meanwhile, largely keep the energy expenditure of their software and hardware private.

Some attempts to quantify AI’s energy consumption have started from the user side: calculating the amount of electricity that goes into a single ChatGPT search, for instance. De Vries-Gao decided to look, instead, at the supply chain, starting from the production side to get a more global picture.

The high computing demands of AI, De Vries-Gao says, creates a natural “bottleneck” in the current global supply chain around AI hardware, particularly around the Taiwan Semiconductor Manufacturing Company (TSMC), the undisputed leader in producing key hardware that can handle these needs. Companies like Nvidia outsource the production of their chips to TSMC, which also produces chips for other companies like Google and AMD. (Both TSMC and Nvidia declined to comment for this article.)

De Vries-Gao used analyst estimates, earnings call transcripts, and device details to put together an approximate estimate of TSMC’s production capacity. He then looked at publicly available electricity consumption profiles of AI hardware and estimates on utilization rates of that hardware—which can vary based on what it’s being used for—to arrive at a rough figure of just how much of global data-center demand is taken up by AI. De Vries-Gao calculates that without increased production, AI will consume up to 82 terrawatt-hours of electricity this year—roughly around the same as the annual electricity consumption of a country like Switzerland. If production capacity for AI hardware doubles this year, as analysts have projected it will, demand could increase at a similar rate, representing almost half of all data center demand by the end of the year.

Despite the amount of publicly available information used in the paper, a lot of what De Vries-Gao is doing is peering into a black box: We simply don’t know certain factors that affect AI’s energy consumption, like the utilization rates of every piece of AI hardware in the world or what machine learning activities they’re being used for, let alone how the industry might develop in the future.

Sasha Luccioni, an AI and energy researcher and the climate lead at open-source machine-learning platform Hugging Face, cautioned about leaning too hard on some of the conclusions of the new paper, given the amount of unknowns at play. Luccioni, who was not involved in this research, says that when it comes to truly calculating AI’s energy use, disclosure from tech giants is crucial.

“It’s because we don’t have the information that [researchers] have to do this,” she says. “That’s why the error bar is so huge.”

And tech companies do keep this information. In 2022, Google published a paper on machine learning and electricity use, noting that machine learning was “10%–15% of Google’s total energy use” from 2019 to 2021, and predicted that with best practices, “by 2030 total carbon emissions from training will reduce.” However, since that paper—which was released before Google Gemini’s debut in 2023—Google has not provided any more detailed information about how much electricity ML uses. (Google declined to comment for this story.)

“You really have to deep-dive into the semiconductor supply chain to be able to make any sensible statement about the energy demand of AI,” De Vries-Gao says. “If these big tech companies were just publishing the same information that Google was publishing three years ago, we would have a pretty good indicator” of AI’s energy use.