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Pros and Cons of Data Entry Outsourcing

With data becoming more and more valuable for virtually all businesses, data entry and data processing are becoming more integral for many businesses, and the volume of data that must be inputted and processed continues to rise with every single year. 

On the other hand, data entry can be a very time-consuming and repetitive process, and oftentimes, we ask employees whose core competencies aren’t data entry to perform this administrative task. Meaning, we take this employee’s valuable time that can otherwise be used to perform tasks that will contribute more to achieving your organizational goals. 

With the aid of technology and remote communication, a viable solution for the above issue is to outsource the data entry process to various data entry vendors and even offshore data entry professionals in locations with lower labor costs to maximize cost-cost efficiency. 

Yet, while there are obvious advantages to outsourcing the data entry process, there are also potential disadvantages. This is why in this article, we will discuss the pros and cons of data entry outsourcing. 

Pros and Cons of Data Entry Outsourcing

Advantages:

  1. Cost-Efficiency

Outsourcing will naturally save your company some money on overhead expenses since we can eliminate compensations and other benefits. However, by partnering with data entry service providers that offer services from offshore workers, we can get help from data entry professionals located in third-world countries with lower labor costs. 

Oworkers offers very low-cost data entry services for only up to $4 (USD) per hour without sacrificing quality.

By doing so, we can effectively reduce the operational costs of the data entry tasks. Indirectly, we can also save on man-hours of our in-house employees since they can focus more on doing their core tasks rather than the data entry processes. 

2. Faster Turnaround Time

Since we are outsourcing to experts that are focused solely on the data entry process and not other tasks and responsibilities, we can expect a faster turnaround time. 

Hiring a data entry professional from a different time zone may also have some perks. For example, you can ask them to finish the data entry process before the next business day in your location starts, saving a lot of time in the process. 

3. Access To a Wider Pool of Talent

Outsourcing to an experienced company like Oworkers can provide access to experienced and qualified data entry experts outside your geographic location, and there’s always the possibility of meeting a better-quality talent in such cases. 

4. Accuracy

By outsourcing the data entry process to the right company, we are getting help from experienced professionals who can efficiently input and manage your data, minimizing the risks for human errors. Data entry mistakes can actually be very expensive in the long run, and so by improving data entry accuracy, you will also save more in operational expenses. 

5. Allowing Employees To Focus on Core Activities

This is especially true if data entry and data processing aren’t actually part of your core business activities. By outsourcing your data entry process, you can ensure key employees are using their valuable time to focus on tasks that can contribute more to your business’s objectives. This can help employees focus on their core competencies with greater productivity for your company. 

Disadvantages:

  1. Data Security

When you outsource the data entry process to a third-party vendor, which in turn has its own employees, you are sharing your data with your service provider. If it’s confidential and/or sensitive data then you are essentially exposing this data to various security issues. 

Thus, it’s very important to choose a data entry service provider that maintains strict security best practices and policies. Check whether the vendor has a non-disclosure agreement with their clients and employees in writing. 

2. Cultural Difference

This can be a major issue if you work with offshore data entry professionals. Obviously, you should choose a data entry worker that can speak your language, but you should also consider potential cultural differences to deal with. 

To tackle this issue, it’s best to choose a data entry service provider that has experience with clients from your geographical location. 

3. Time Zone Differences

While time zone differences can have their perks, as discussed above, they can also cause various issues like delayed responses during your business hours and even delayed technical support during emergencies. 

Check whether the data entry service provider can provide you with dedicated 24/7 customer support, and check whether the data entry professional can at least work half your business hours with you. 

4. They’ll Also Work For Other Clients

This is a common issue when outsourcing any projects. It’s common for the outsourcing vendor to work with various clients in parallel, and there are cases when they might not provide enough focus for your data entry tasks. 

Make sure you have defined a standard of quality and KPIs for your data entry projects before committing to a data entry service vendor. You should clearly communicate your requirements before signing off with this vendor to avoid future issues. 

Conclusion

As you can see, the benefits of data entry outsourcing far outweigh the cons. While there are indeed some concerns to be had before signing off with a data entry service provider, most of them are manageable and can be resolved by choosing an established data entry service provider with enough experience in your industry and/or geographic area. 

Oworkers is an established offshore data entry solution with professional, well-trained data entry experts guaranteeing 100% accuracy and consistency of service for your data entry needs. 

Akshay Varma
Akshay Varma is a senior Journalist with Mass Media Communications Degree from Aurora Degree College. He writes mostly on Movies and Trending Topics
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