Data Specialists

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Paragon Outsourcing

Data Specialists 

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Top 7 Reasons to Outsource Data Entry Services

We live in a world of data where we live and breathe data everywhere. Organizations thrive on accurate and organized data. Whether it’s measuring performance or taking important strategic decisions, organizations need data. Maintaining records of data and manually entering data into the system forms a part of the routine activities of any organization. Yet, it remains one of the widely outsourced tasks in the business world today.

Before we delve into the reasons for outsourcing data entry services, let us understand a bit about data entry.

No matter what the nature of the business, there is always a tonne of data to be entered into the system. These can be data entry from papers, documents into the CRM or into digital documents like spreadsheets etc. These data represent your business and are valuable for the success and future growth of the organization. They contain information like the company’s past performances, financial details, profits, sales figures, market analysis, list of past and present customers, vendor details and the list goes on. Therefore data entry tasks involve not just entering new data but also deleting old ones so as to keep the record updated and accurate. Not to mention the accuracy with which fresh data needs to be entered as a small mistake can prove to be costly for the business. Therefore when we talk about data entry we mean data management, data processing, and data validation too.

All of this is a lot of work. So much so that it’s difficult for an organization to manage it all in-house. It requires practice and precision to execute the task effectively and efficiently and therefore organizations often feel its best outsourced to a company specializing in such tasks. Managing it in-house would mean devoting one resource solely for the task which would result in other core tasks taking a backseat. Not to mention the scope of errors, supervision required, etc.

There are three main types of data processing as mentioned below-

Mechanical Data Processing: This type of data processing helps to improve the operations performed with the help of calculators and typewriters. But, on the other hand, speed and error still remain a function of the human operator.

Electronic Data Processing: Digital data processing uses computer systems for facilitating business operations. As computers can handle an expandable range of work and data, they are majorly being used by different companies in the data processing method. Electronic data processing has become the part of a trending norm, all because of the developments made in the technology.

Manual Data Processing: People today call this method as the old-fashioned one because it came into being even before the invention of typewriters and calculators. Manual data processing is usually done by hand, so the process involves a lot of mistakes and errors.


Here are the top reasons why a company decide to outsource data entry services:-

Reduced Operating Cost – Outsourcing data entry services to a BPO or outsourcing company can turn out much cheaper for companies. Hiring a resource in-house for the task is not just challenging but also expensive as finding the right person for the role is never easy. Add to it the cost of wages, infrastructure cost, other employee benefits and you have a sizeable expense. Not to mention the cost and time involved in training and supervision. Outsourcing to a remote company for a fee is definitely easier and also cheaper especially if you outsourcing to companies in countries like India, Malaysia, and the Philippines, etc.

Saves Time – You don’t just save money but also save a lot of time by outsourcing data entry services. Once you have outsourced the task, you need not worry about the resources, supervision, etc. The outsourcing partner will take complete responsibility and you will get a report on the progress of the task. You will be free to concentrate on other revenue-generating tasks like sales and plan for a company’s future growth.


Quick Turnaround Time – Outsourcing companies generally have a team of skilled professionals to perform the task. They are skilled, qualified and experienced in performing even the most complex and most difficult data processing tasks within short turnaround time.

High-Quality Services – Outsourcing companies have experience in handling similar projects. They have experienced professionals to carry out the tasks and therefore boast high-quality services with minimal scope for errors.

Security and Confidentiality of Data – Most outsourcing companies follow strict privacy standards where data security and confidentiality is given utmost priority. Also, most companies sign an NDA (Non-Disclosure Agreement) at the time of signing of the contract which binds them legally to not disclose or share or use any data internally or with any third party. Therefore you can rest assured that your data will be safe and will not be subject to any misuse.

Excellent Data Management – Outsourcing data entry services to a professional outsourcing company will not just help you enter data into the system but will also help you do away with old data digitizing, organizing and storing all files in an appropriate manner. They are skilled at using various tools and software so as to properly organize and manage all your data in one place. It will, therefore, be easier for you to retrieve data anytime from the system as all data files will be indexed in a proper manner.

Flexible Contracts – Data entry is not a permanent full-time task. Once you have entered data into the system, the task will be done and will not require you to go back to it again and again. Data remain in the system for years until fresh data comes and you will need to update the old data. Therefore it is not an on-going regular task. Managing it in-house will mean that your resource will be idle once the data entry is completed. You will have to pay the full wage and will have to find alternative ways to engage them. This becomes an unnecessary burden on the organization. With outsourcing, there is no such issue as you can have a temporary arrangement with them either for a fixed duration or on a per-project basis. That way you will be required to pay the pre-determined price to them once the project is completed.

Last but not least, outsourcing data entry services or any other task for that matter is a profitable arrangement as it’s cost-effective and efficient. All you need to do is to find the right outsourcing partner that suits your business needs and would meet your objectives.


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