A Beginner’s Guide – To Outsource Data Entry or Not?

Data entry may seem simple, but it is time-consuming and needs particular attention. It is also not a job for just anyone. Data entry should be left to skilled professionals up to the task. They should have an appetite for accuracy, excellent keyboard skills, and the ability to work under deadlines.
The only tricky part about this job is that hiring a full-time data entry clerk might not be ideal for companies. It could be too expensive, especially for startup companies. The solution to this dilemma is outsourcing talents.
This article will tell you why outsourcing your data entry is a much better option for you than hiring in-house talent.

Understanding Data Entry Outsourcing: What Is It?

Data Entry Outsourcing is hiring external help to take care of this aspect of your business on behalf of the team. If you need help transcribing handwritten documents, creating product data and claims data, filling in MS Excel sheets for back-office accounting, adding invoices and images to your data files, and other document management services, a data entry specialist can take care of those tasks for you.
In simple terms, it involves forming a partnership with a third-party service provider. You can hire them from any location, and they can do the job for you remotely or in-house whenever you need them. There are two ways to proceed should you decide to outsource this service:

  • Onshore Outsourcing: This means sourcing your data entry encoder from your country. Your outsourced talent could either work for you remotely or on-site.
  • Offshore Outsourcing: This means sourcing your data entry encoder from foreign countries. This move could help you lower your expenses, but communication might be a problem.


Why Consider Outsourcing Your Data Entry Service Needs

If you are still contemplating whether to outsource your data entry or not, here are the three main reasons you should consider doing so:

  • You Save Money

Hiring a remote worker only when you need them can help reduce your costs. If you hire an experienced specialist or already have a rapport with a certain party, you would no longer have to train them to do the job. Furthermore, you would not need to start a hiring event or campaign as you can hire them directly or through an agency.
Another reason you can save money is that these data entry service specialists already have the right software. You no longer need to invest in one for your company or provide them with theirs.
If you also hire from other countries, such as the Philippines and Indonesia, you can secure a good service at a much lower cost. Moreover, there is no need to spend on other typical perks that employees get, such as allowance or insurance. That is a substantial operational saving on your end.

  • Their Service Is Less Prone to Errors

If your worry is on the quality of work, it all depends on how well you choose your workers. You can base it on experience or track record.
Data entry professionals have been trained to work accurately. With the proper assessment, you can ensure that you get quality work.
Moreover, many of these professionals live on a per contract work setup. That is why they would always want to bring their best to their clients to get repeat business. More importantly, they already understand the right tools to ensure that they do the job accurately and efficiently. That is an advantage over hiring a beginner to do the job in-house for you.

  • You Increase Your Productivity

Data entry is definitely a vital part of the business. However, the task can be time-consuming and repetitive. If you decide to do this yourself, you will end up having no time to spend on the more critical tasks, such as growing your business.
Time is crucial to every business, and you would need your core employees to focus on performing their tasks.
With a data entry professional working on the encoding on the company’s behalf, the whole team can be more efficient and productive in performing their roles. Your business can benefit from this decision.

How to Know If You Are Ready to Outsource Data Entry

Not all are ready to outsource their data entry. To know if you should do so, here are some questions you need to ask yourself:

  • How Much Would You Benefit from Outsourcing?

It is essential to do some math before hiring that outsourced data entry professional. Sit down and assess how much you would save up from having an in-house employee (or doing it yourself) versus outsourcing.
This article mentioned that outsourcing could help you cut costs, but it is still essential to see the numbers yourself. That would help you make the best decision for the company. The number would also help you identify how much you can assign for your outsourcing budget, limiting your options.

  • Are You Aware of the Security Measures Involving Your Industry?

Some business data cannot be exposed to other people due to privacy reasons. Before you hire a data entry service provider, you need to understand the legal issues you might face should the information be exposed to the public.
You and your data entry company should agree on data security protocols to ensure the safety of your data and your company’s compliance with the industry regulations. Make sure only to hire companies that keep their data security protocols updated.

  • Have You Assessed What Service You Need?

Before you start hiring people to do the job for you, make sure that you have a clear idea of what tasks you want them to complete. You can be specific about your needs and see which would take your requests.
Some of the usual requirements of companies are the following:

  • 24/7 customer support to act on immediate issues quickly
  • Advanced analysis and data processing, if needed
  • The latest technology and updated software
  • Adherence to agreed-upon turnaround times

If you have other non-negotiable requirements, make sure to state them upfront to communicate your needs clearly and avoid problems later.

  • What Is the Reputation of the Service Provider You Are Hiring From?

Finally, aside from asking for experience and about their track record, you should also conduct a thorough research about the company you are eyeing. It is a crucial step, especially if you plan to let them handle your sensitive data. Here are some of the helpful guidelines in hiring one:

  • Hire a financially stable company
  • Hire a company with satisfied and positive reviews
  • They must have a data security policy



If your company deals with a lot of data, hiring someone skilled and equipped can take care of this concern for you. However, before doing so, make sure that you assess your needs and options carefully. Always put your business’s security and data accuracy in your priorities. If you find the right one, your company and employees can benefit and be more productive.
Should you need a reliable data entry virtual assistant, we can help you. Crewbloom is your source for companies and individuals that provide top-tier yet affordable remote sales and support functions. Start browsing now or call us at +1 (718) 747-8756 to learn more.

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