Summary
Learning how to outsource data entry effectively can help you find the right partner at the right cost. It not only saves cost, but also frees time for your team to focus on business growth.
Data entry tasks pile up fast in any growing business. Your team spends hours typing customer info, updating databases, and managing invoices. This takes precious time away from important business work. And this is why businesses look to outsource data entry tasks.
But what most of them don’t know is how to outsource data entry work correctly. That’s where this article will come in handy for you. Here you will learn when to do it, why you should do it, how to prepare for it, and how to pick the right ones. So, let’s get started with it.
What Does It Mean to Outsource Data Entry Work?
Data entry outsourcing means hiring another company to handle your typing and data tasks. Instead of doing this work in your office, you send it to experts who specialize in data entry.
Third-party providers are companies that offer data entry services. They have trained staff and good technology to do the job. They handle your data tasks quickly and correctly.
Here’s how in-house and outsourced data entry compare:
| In-House Data Entry | Outsourced Data Entry |
|---|---|
| Internal staff handles all the work | External company handles it |
| Higher costs (salary, benefits, utilities) | Lower costs (pay per project) |
| Limited scalability | Can scale up or down flexibly |
| Uses your office space, hence more costs | No extra office space needed, hence less costs |
| Greater control over the tasks | Less direct control over the tasks |
| Only local talents are accessible | Offers a global talent pool to choose from |
You can outsource many types of data entry work:
- Text data entry: Typing information from documents
- Image data entry: Extracting data from pictures or scanned files
- Invoice data entry: Processing bills and payment info
- Data cleansing: Fixing errors and updating old information
- Online research: Gathering information from websites
- Database management: Organising and updating your data systems
When Should You Consider Outsourcing Data Entry?
There are some clear signs that tell you it’s time to outsource your data entry work or hire virtual assistance. Look out for the following situations in your business. If you face them, then it’s time to outsource.
1. Scaling or Seasonal Spikes
One situation that’s quite evident is when the business is booming rapidly. There’s a large number of customers and data to handle, but not enough manpower. It can also happen during busy seasons, when you get bombarded with extra traffic.
2. In-House Capacity Limitations
If the in-house data entry team is struggling with work pressure, then outsourcing is the solution. It’s a more cost-effective alternative to hiring additional full-time employees due to cost and space constraints.
3. Error-Prone Manual Systems
With an in-house staff, there’s always the factor of making manual errors. As many times, they aren’t truly experts and can’t handle diverse work. It leads to mistakes that are not only costly but also time-consuming. That’s when outsourcing to global data entry specialists can pay dividends.
4. High Operational Costs
Hiring and training data entry staff is expensive. You also need computers, software, and office space. These costs add up quickly. With outsourcing, you can often obtain the same work at significantly lower costs.
5. Demand for Faster Turnaround
In a scenario with a large number of customers requiring faster turnaround, outsourcing data entry work is the only viable way.
Benefits of Outsourcing Data Entry
The benefits of outsourcing data entry are clear and measurable. Here’s what a business gains from it –
- Cost Savings: Outsourcing a data entry specialist can reduce up to 78% on overhead costs for businesses. They don’t have to bother about paying salaries, benefits, or training costs. They only pay for the work they need. This frees up funds for other areas of business growth.
- Improved Efficiency: Professional data entry teams work faster than general office staff. They use the best tools and methods to complete data entry work much quicker.
- Higher Accuracy: With outsourcing, there’s a high chance of getting data entry specialists. They make fewer mistakes, double-check their work and use quality control systems. This means less time fixing errors later.
- Scalability: Scaling up a business is much easier with outsourcing partners. They can help you add more workers when you need them, and remove them when you don’t. And the best part is no hassle of hiring or firing anyone.
- Business Focus: Instead of worrying about things like typing data, the in-house team can focus on business more. They can spend their time on boosting sales, customer service, or product development. It helps your business grow faster.
How to Prepare for Outsourcing Data Entry?
One of the key things for outsourcing data entry work is good preparation. Before you even hire a third-party service or company, you have to prepare on your end. Here’s how you do it:
1. Audit and Clean Existing Data
Firstly, check out the current data in your business. Remove all outdated or incorrect information from the database. Having a clean data resource is much easier to hand over to a new company that you will outsource for data entry.
2. Standardize Formatting
Once you have the data cleaned up, the next step is deciding the format you want to use for the data. You can create templates and examples of the format you desire. This helps the outsourcing team understand exactly what’s needed.
3. Define Clear Instructions and Scope
The best results you can get from outsourcing are through clear instructions. You have to make the outsourced team understand exactly what you want from them. A great way to do that is to include detailed instructions or examples of good work. Be thorough and specific about what you want.
4. Classify Data by Priority or Sensitivity
No one knows which data is more important for your business than you. That’s why you have to mark the urgent or confidential information beforehand. It will help the outsourced team to handle the data correctly and accurately.
How to Choose the Right Data Entry Outsourcing Partner?
After preparing on your end, the next big thing is to find the right outsourcing partner. It’s very crucial for the success of your business. Consider the following factors when looking for the right data entry outsourcing partner:
1. Evaluate Experience and Track Record
Look for companies that have been in business for several years. Ask how many similar projects they’ve completed in their lifetime. Experience matters a great deal in data entry work, as it leads to efficiency and accuracy.
2. Review Case Studies and Testimonials
Reading what other customers say about their work is also very important. It provides insight into the experiences other customers may have had with them. If there are good reviews, you can go with them with more reassurance.
3. Check Technology and Data Protection
A critical consideration for choosing the right outsourcing partner is to see what technology they use. You must ensure they use modern software and secure systems for their data entry work. So, ask them about their data security measures. Information needs to be protected.
4. Assess Scalability and Flexibility
Since outsourcing enables you for flexibility and scalability, you have to consider these factors as well. See if they can handle more work when required. Or if they work in the right time zone as you. Having the flexibility to work helps immensely when you need rapid changes.
5. Understand Pricing Structures
The next step towards finding the right partner is to understand how they price their services. You simply have to request clear pricing information from them. Some charge by the hour, while others charge by the project. See how they charge, and how it fits your needs.
6. Ask About Quality Control and Turnaround Time
Lastly, to honestly assess their confidence and quality, you must ask them some direct questions. It can be how they check their work for errors. Or you can also ask them how fast they can complete projects. If they are good at their work, they surely will have confident and clear answers.
How to Manage the Outsourcing Relationship?
To achieve good results from outsourcing, you must know how to effectively manage the relationship. Good management keeps outsourcing projects on track. Here’s how to do it right:
- Draft a Clear Service Level Agreement (SLA): Write down all expectations in a contract. Include deadlines, quality standards, and what happens if something goes wrong. This protects both sides.
- Set Up Regular Communication Channels: Decide how to communicate with the outsourcing partner. Weekly calls or daily emails work well. Regular contact prevents problems.
- Monitor Performance Through KPIs: Track important numbers like accuracy rates and completion times. This indicates whether the partnership is working effectively.
- Provide Ongoing Feedback: Tell partners when they do good work. Also, point out problems quickly. Good feedback helps them serve better.
- Ensure Mutual Understanding of Project Goals: Ensure that everyone is clear on what success looks like. Clear goals prevent confusion and disappointment.
Cost of Outsourcing Data Entry Services
When it comes to the outsourcing data entry services cost, you have to go through several factors. These are important to consider when comparing pricing from different companies.
Average Pricing by Country
Here are some of the best countries to outsource data entry, some for prices, some for quality.
| Country | Hourly Rate (Freelancers) | Hourly Rate (Companies) |
|---|---|---|
| Bangladesh | $1.48 | $3+ |
| India | $2.87 | $2.5 to $6 |
| Germany | $23.39 | $25 to $49 |
| United Kingdom | $13.81 | $4 to $15 |
| United States | $23.89 | $6+ |
What Affects the Cost?
Here’s what affects the cost of data entry services:
- Type of Data: The type of data you want the companies to work with has a lot to play in the cost. Simple typing work will cost significantly less than complex data extraction. Also, working with handwritten documents costs more than typed text.
- Volume and Turnaround Time: The volume of data will also impact the cost. If there’s more data to process, it will require more resources, which in turn costs more money. A need for quicker turnaround time also increases the cost a lot.
- Location of Service Provider: Depending on where you are outsourcing the service from, it will also play a huge role in the cost. Different countries charge different rates, but they also differ in quality. So, be aware of what they offer and how good they are at it.
- Level of Expertise Needed: If the data entry work requires basic skills, then the cost is much lower than expert-level data entry. Also, if it’s a specialized data entry work, like medical or legal data entry, then it will cost more.
Conclusion
In summary, knowing how to outsource data entry effectively comes down to preparation and choosing the right partner. The best way to do this is through thorough research on different options and then selecting one.
Keep in mind that the cheapest option isn’t always the best. Look for partners offering good value. They don’t just ensure good ROI, but also provide quality and security. So, make sure to aim for that perfect balance.
