Top 4 Considerations When Choosing a Data Entry Outsourcing Provider

Top 4 Considerations When Choosing a Data Entry Outsourcing Provider

Many businesses are now looking to outsource their data entry tasks to reduce operational expenses and maximize time efficiency. 

After all, in many businesses, data entry and data processing are not their core operations, but at the same time is this digital age, all businesses would involve at least one data entry task. With how the volume of data generated by businesses continues to rise, the demands for data entry will also rise. 

In cases when hiring a data entry professional and building an in-house data processing infrastructure aren't viable, data entry outsourcing can be a viable solution. However, it's still important to find the right data entry service provider to outsource to, and this is why in this guide, we will discuss the key considerations to have when choosing a data entry outsourcing provider. 

Key Concerns When Choosing a Data Entry Outsourcing Provider

The main benefit of outsourcing your data entry process is fairly obvious: reducing your operational expenses. You don't have to hire an in-house data entry personnel and you can also eliminate the costs to train these employees, as well as infrastructure investments. 

However, there are also some key concerns preventing many businesses from outsourcing their data entry processes: 

1. Data Security

One of the top concerns of data entry outsourcing is the fact that your confidential data must be shared with the data entry service vendor, which will translate into potential risks of data breaches and other issues. When choosing between different data entry service providers, it's important to double-check the service provider's adequacy regarding data security and whether it has maintained data security best practices. 

2. Cultural Differences

This is especially true if you are outsourcing your data entry processes to offshore professionals. Language barriers and cultural differences can become major issues when your outsourced data entry personnel fail to understand your language and norms, and vice versa. The trouble of understanding your worker's accent is also a common and major issue. The best approach to tackle this issue is to choose a data entry service provider with adequate experience in working with clients from your geographical area. 

3. Lack of Focus

It's normal for outsourcing companies to work with more than one client at one time, and when they can't manage their time properly, it can lead to the failure of giving your business undivided attention to your requirements. This, however, shouldn't be an issue if you work with established and experienced vendors. 

4. Inconsistency and Errors

This is a concern not specific to data entry outsourcing, but any outsourcing in general. You don't have direct control over the people you 'hire', and so there's always the potential of poorly executed jobs and inconsistencies. Again, this shouldn't be a problem if you select a company with a good track record. 

Key Considerations When Choosing a Data Entry Outsourcing Provider

To tackle the four concerns above, it's important to consider these five factors when picking the right data entry service provider for your business: 

1. Check Your Vendor's Security Measures

Again, data security is very important especially if your business involves confidential and/or regulated data (i.e. customer's financial data). Since you are going to share this confidential data with your data entry service provider, an external entity, you need to understand the vendor's security infrastructure and whether they've properly performed cybersecurity best practices according to your requirements. 

This is especially true if you are in an industry that is heavily regulated like if you are in the healthcare industry. Choose a data entry company that is ISO-certified, and if you are serving the European market, then GDPR compliance is a must. 

2. Identify Your Requirements

Your business is unique, and so your data entry processing needs would also be unique. 

Make sure to clearly map your business's data entry requirements before committing to a data entry service provider. For example, if your data entry process needs advanced calculations or specific data processing, then you should look for a company that can specifically provide this service. 

Also, consider whether you'll need 24/7 customer support. Dedicated customer support might cost you more, but if your data input/data processing is often time-sensitive and/or prone to errors, then it might be a worthy investment. 

Last but not least, if your data entry process requires specific software or technology (i.e. OCR), then make sure the vendor uses the latest technology that can fulfill these requirements. 

3. Potential ROI

Remember that the main objective of outsourcing your data entry process should be about improving cost-efficiency. So, calculate thoroughly how much in cost the data entry outsourcing service can reduce your operational expenses. 

This will vary depending on your data entry process, but in general, you should calculate how much it would cost to do the data entry tasks in-house. Then, when weighing between different outsourcing vendors, use this number as a comparison. 

Fairly obvious, but make sure to hire a vendor that will indeed improve your cost-efficiency. 

4. Reputation and Experience

Nowadays, we can quite easily research all kinds of products and companies online. 

Do thorough research on the outsourcing vendor that you are planning to partner with. Check online reviews and testimonials (if there aren't any, then it's a red flag), and if possible contact their previous clients for confirmations regarding the vendor's claims. 

Obviously, you should make sure the data entry outsourcing provider is financially stable so you can ensure they can stay up-to-date with the required infrastructure and resources. 


As we can see, the benefits of data entry outsourcing far outweigh the disadvantages. Although there are some concerns you should have before outsourcing your data entry process, most of the challenges can be resolved by choosing an established and experienced data entry service provider with a good track record. 

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