The New Era of Tech Arbitrage: From Cost-Driven Outsourcing to AI-Native Acceleration

Summary

• Shift from cost-only outsourcing to AI‑native capability arbitrage for speed, quality, and IP control.
• AI works best as augmentation: human‑in‑the‑loop, evals, and guardrails drive reliable outcomes.
• SaaS TCO vs custom: parity ~year 3; custom often saves 30–40% in five years and enables differentiation.
• India’s advantage: deep AI talent, cost efficiency, and growing infrastructure (mission‑led, GCC‑backed).
• Engagement model: 90‑day MoU trial to ship a production slice, then scale as vendor of record.
• Partner criteria: AI‑native expertise, domain depth, measurable value, and human‑AI integration.