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A blog banner by Magellan Solutions about b2b telemarketing is AI the future
B2B Telemarketing: Is AI the Future?
How to Ensure Accurate Data Entry
How to Ensure Accurate Data Entry

Complete Guide to Data Entry Outsourcing

Banner for Complete Guide to Data Entry Outsourcing with the text Here's Everything You Need to Know About Outsourcing

Banner for Complete Guide to Data Entry Outsourcing with the text Here's Everything You Need to Know About Outsourcing

Everything You Need to Know About Data Entry Outsourcing

Data entry duties demand efficient skills that allow firms to maintain up-to-date and accurate records. Manual data entry done by qualified and skilled people, cannot be matched by online tools.

Regardless of business size, data entry is tedious and time consuming. It can take valuable time away from business owners. Instead of spending resources on strategic decisions to improve fundamental business procedures, you are encoding data.

Good thing there’s Data Entry Outsourcing!

What is Data Entry Outsourcing?

Data entry, in its most basic definition, is the processing of information. It also means reading, understanding, and managing digital data.

The integrity of any organization is determined by the data it generates and how they manage it (Data Management). Documents such as passports, medical records, or shipping receipts are all examples of data..

Since most data is sensitive, this work therefore requires not only skills but accountability.

“Data outsourcing” or data entry outsourcing refers to the process of hiring an external data entry company. These companies are located outside your country and their task is to handle your data management activities.

Someone working on a laptop

What are the benefits of Data Entry Outsourcing?

Outsourcing data entry allows businesses to reduce costs and multiply efficiency. 

How? By allowing them to handle unimportant tasks.

But there’s more about data entry you should know. 

According to a Deloitte survey, the top factors that entice companies to outsource are: 

  • Reduced costs (59 percent)
  • Better focus on core activities (57 percent)
  • Improved service (31 percent)
  • And access to expertise and better knowledge (28 percent).

Let’s look at them one by one:

 

1. Reduce Cost (59%)

It’s probably the most obvious reason of all.

Resources are required for the onboarding and training of a full staff for data entry duties. Furthermore, you must purchase computer hardware and software for the whole team. 

However, you can get a full team of specialists and their own equipment when you outsource data entry services. 

The best part is you can pay a considerably cheaper price for it.

49% of companies said that they are outsourcing IT tasks to free up resources.

Companies that outsource their information technology activities claim that they outsource to save money. 

Also, according to 46% of respondents, it allows them to acquire skill sets that are not available in-house.

 

2. Better focus on core activities (57%)

Outsourcing Data Entry frees up the company’s time. This allows company owners to devote greater attention to the primary business process.

Staff are relieved when certain non-core activities are outsourced to an outsourcing company. Simply because this allows them to devote their attention to core operations. 

Aside from that, corporations believe that outsourcing provides them with superior services and technology. 

As a result, many businesses are concentrating their efforts on their core competencies at the most fundamental level. 

The general consensus on this topic is that non-core activities should be outsourced. And the core competencies and core process production should be concentrated in-house.

 

3. Improved service (31%)

Ann P. Bartel, a Professor of Economics at Columbia University’s Graduate School of Business advises on one of his paper that:

“Be prepared to think more seriously about outsourcing as a way of dealing with technological change. If you are in a world in which technology is continually evolving, it may be expensive to try to keep pace. Outsourcing may be a solution.”

The access to innovative technologies may be the most important advantage of outsourcing. Many small businesses rely on low-cost scanners, however the quality of the scans varies..

In addition to cutting-edge scanning equipment, BPOs invest a lot on a variety of technologies. For two reasons, accelerate processes and improve accuracy. With these, they can convert documents (or data conversion), process important information, and make data available fast.

 

4. Expertise and better knowledge (28%)

In order to enter reliable and organized information into your system, you must hire trained data entry clerks.

If you’re starting from scratch with a data entry team, you’ll face a lot of challenges.  You’ll have to manage the hiring, training, and onboarding of new staff.

If you choose to outsource, you will be able to pass all of these tasks to your provider. BPOs provide you with quick and easy access to highly qualified personnel.

Not to mention the fact that small business owners place a high value on efficiency above all else. 24% of small businesses hire BPOs to improve efficiency. Besides, SMEs typically cannot afford access to the resources necessary to build a team from the ground up.

person working on a projection of graph

What are the types of Data Entry Outsourcing?

Businesses prosper when they have highly productive employees on board.

As we all know, it is possible to hire a BPO to manage your daily duties for a fee. So here are the different types of data entry outsourcing you can get from them:

  • Word processing
  • Catalog data entry
  • Payroll data entry
  • Email processing
  • Captioning
  • Online form billing
  • Transferring of information

Selecting the most appropriate data entry service provider is composed of a variety of criteria. However, before you begin, it is critical that you understand your company goals.

Identify first what you need. As you narrow it, communicate it to your service provider. In that way, they can offer you the appropriate type of service you need.

 

What are the types of Data Entry jobs?

Outsource online data entry allows businesses to manage various tasks. 

Data entry employees are tailored to the specific requirements of each firm. This might range from data tagging to data encoding, and so on.

In essence, it is important that you know all the data entry jobs out there. So you will be able to identify who fits into your team.

Here are the most common data entry jobs:

  • Data Entry Clerk 
  • Word Processor
  • Data Cleaner
  • Product Data Entry
  • Invoice Data Entry
  • Micro Data Entry
  • Survey Data Entry
  • Medical Transcriptionists
  • Payroll Processing Clerks
  • Proofreader
  • And many more!

Choosing the right person to your team is essential to reach success. Since this type of work inherently leaves no room for error, always keep in mind that it’s worth being critical.

 

What are the challenges of Data Entry Outsourcing?

Data entry outsourcing is not a perfect service. It has many challenges that need to be addressed.

These are some of the difficulties a data entry provider company experienced:

 

Decrease in Quality of Work

In a Forbes article, they highlight that decrease of quality of work is one of the downsides of outsourcing. 

When you outsource work, you give up some control over to the BPO company. 

Among the many reasons for this is that you are frequently engaging a contractor rather than an employee. That is why it is hard to retain the amount of control you desire.

However, the solution to this is simple. Just distinguish your core and non-core activities. Only delegate the not so essential tasks to BPO companies. In that way, you’ll be able to control, at least, 90% of your company’s overall function.

 

Security Issue

If you’re outsourcing something that involves information systems, there are issues of communication and privacy to consider. 

It is harder to maintain data security when the data system is located in a different country. Different countries have varying security requirements, there is some question on information safety. 

But we are now living in 2022.

BPO Technology has greatly improved. Through the use of computer software, businesses can ensure that all information is kept confidential. With just one click of a button!

Data entry BPOs typically utilize sophisticated computer systems that are safeguarded by firewalls or antivirus. And the majority of client records are kept out of the public domain through specialized storage.

 

Communication

When working with a BPO provider, language barrier is always a challenge.

Many people are involved in outsourced processing services such as data entry. Most of them do not even speak the same language. This problem is valid as it might lead to serious problems.

But the solution to this is simple yet ironic. It is to communicate everything clearly, and thoroughly.

Stevenson University suggests that business communication is imperative for both parties:

“When communication is effective, it leaves all parties involved satisfied and feeling accomplished. By delivering messages clearly, there is no room for misunderstanding or alteration of messages, which decreases the potential for conflict. In situations where conflict does arise, effective communication is a key factor to ensure that the situation is resolved in a respectful manner. How one communicates can be a make or break factor in securing a job, maintaining a healthy relationship, and healthy self expression.”

There are many ways to interact. It can be through a letter, a report, or an image. Listening is important as well. Communication goes beyond the messages we send – it also includes how we receive messages.

Umbrella, People Working, and Laptop

How to find the right Data Entry Outsourcing company?

It is possible that partnering with data entry outsourcing businesses in the Philippines will be beneficial to your company. 

As you can see, there are numerous advantages in hiring a data entry company.

However, there are hundreds of BPOs in the country alone, how will you be able to choose the best one? Well. You cannot. Because every company has their own way of doing business.

But you can choose the RIGHT one. 

To do it, ask your them these questions:

  • Are they flexible?
  • Do they have qualified people?
  • Do they have the equipment?
  • How about the training programs?
  • What are the quality control in-place?
  • What are the data security measures?
  • How do they store customer information?
  • How transparent is the business?

Asking these questions can help you identify the strengths and weaknesses of your BPO partner.

 

The #1 Data Entry Outsourcing Company in the Philippines

Magellan Solutions is considered as one of the best BPO companies in the Philippines.

We have over 18 years of experience, and also one of the few ISO certified BPO companies in the country.

Get in contact with us right now and let’s talk about how our company can help you.

Fill out the contact form below to schedule your FREE 60-minute consultation!

TALK TO US!

Contact us today for more information.

    You can also contact our numbers:


    Toll Free: 1 800 371 6224
    US: +1 650 204 3191

    UK:+44 8082 803 175,
    AU: +61 1800 247 724

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    Miguel Edosma
    Miguel Edosma

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      California – USA (West Coast)

      100 Old Country Road Suite H, Brisbane, CA 94005, United States

      Florida – USA (East Coast)

      1900 South Harbor City Blvd, (East Coast Division) Suite 300 Box 48, Melbourne, FL 32901

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