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Top 5 Pros and Cons of Data Entry Outsourcing You Need to Know

Rahul Maingi

By admin, June 21, 2019

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Managing every aspect of the business internally can be expensive and time-consuming. That’s why many companies prefer outsourcing some of their daily tasks to a third party, especially data entry work. But outsourcing the projects have several pros and cons associated with it, which should be considered to determine whether this is the best solution for the work you need.

Pros and Cons of Data Entry Outsourcing

Data Entry Pros and Cons

Advantages:

 

  1. Accuracy in the work

Professionals at data entry companies are seasoned and well-trained with many years of experience. Since they specialize in this job, the possibility of mistakes is reduced. Their expertise ensures the project will be professionally presented and delivered accurately in time, provided you are partnering with a reputed company in this sector.

  1. More time for core business activities

Every business has core and non-core activities. Core activities are strategic tasks that improve customer value and drive profits whereas non-core activities are day-to-day routine tasks that add little value. If you can outsource the non-core activities of the business to another company, you have more time to focus on the core requirements which needs to be handled internally. This, in turn, will enhance your productivity and commitment towards the core activities for business development.

  1. Perks of a different time zone

If you are outsourcing the data entry task to a company which is in another time zone, you can reap several benefits. The work will be done in advance before the next working day starts in your time zone. This means the chances of failing a deadline is negligible. Again, this is an advantage that is subjective and largely depends on the reliability and professionalism of the company you are working with.

  1. Save a significant amount of money

Depending on whom you are outsourcing the data entry process to and where it is located, a significant amount of money can be saved compared to the cost you incur by hiring in-house. When your operational costs for the company is reduced, offering competitive rates to your clients will become easier. This will eventually draw more clients leading to a higher profit margin.

  1. Increase the overall productivity

As you can save more labour-hours by outsourcing the data entry work, this time can be allotted to other aspects of the business to boost its growth. Also, the workload on your in-house staff is reduced which will increase their efficiency. Lastly, outsourcing solutions let you access talented people with better skills and experience from all over the world, at a lower rate. This increases your company’s productivity cost-effectively.

Disadvantages:

 

  1. Concerns about possible security breaches

The company’s confidential data must be shared with the data entry service provider which is always a potential risk. To avoid any major trouble of your confidential data getting exposed to third parties, it is important to doublecheck the security and confidentiality policies that the data entry company you are hiring has.

  1. Cultural and language barriers

Cultural barriers can often become a hindrance to outsourcing when you do not have enough understanding of the language and norms of the outsource service provider. Cultural holidays may not coincide and trouble with understanding their accent are some basic hazards of outsourcing to another country. The best solution will be to select an outsourcing company that has the reputation of working with clients in your location and seek a trial period before signing up for a long term.

  1. Not choosing a specialized service provider

Every business deal with different data, and it is essential that the data entry service provider has a thorough understanding of the data they are working with. Factual errors can occur which may diminish the work quality and cost you loyal clients. Find an outsourcing company that specializes in the kind of data entry you require to avoid such mishaps.

  1. Lack of personalized attention

Since the offshore company you are hiring is working with numerous other clients, they will not be able to give undivided attention to your company’s requirements. This can become a problem as lack of focus can lead to minor and major errors and untimely hamper delivery of the work, though it is a rare issue when you are seeking the services from a seasoned and reputed data entry service provider.

  1. Inconsistency with services and deadline

Delay with the deliverables and inconsistency in the quality of the work is a major trouble that often arises with offshore outsourcing companies. Delayed response to your requests for revision and poor customer care is another trouble. This is particularly witnessed when you are working with a company in a different time zone that is not a very reputable one. Select a company which can provide you dedicated staffs who can synchronize their work shift with your time to avoid such troubles.

Choosing the Right Offshore Outsourcing Company:

Outsourcing your data entry is a viable choice when you partner with a reputed company. With so many options, finding the best-suited one for your company is not always easy. The following are some tips that will help you find the right company for outsourcing services:

Understanding the pros and cons associated with outsourcing data entry services is essential to get the right service provider. Consider using the above-listed tips to choose an ideal offshore company that offers services aligned to your business requirements.

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