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Data Entry Outsourcing – Advantages and Disadvantages


It is difficult for an organization to manage all the aspects of the business data processing internally. Moreover, some data processing tasks are temporary and therefore it would not be feasible for them to maintain full-time personnel to perform those jobs. As a result, most organizations now prefer to outsource their data entry and data processing tasks to third party service providers. However, data entry outsourcing has both advantages and disadvantages. Taking account of these factors would help to arrive at a decision on whether or not to outsource.

Data Entry Services

Ensure Many Advantages

There are several thousands of companies in the United States that offer outstanding business data processing services. Their data entry outsourcing services ensure an array of advantages:

Reduces overhead: Outsourcing your core back-office tasks allow you to reduce business overhead. You would not need to appoint additional staff or maintain the technology and infrastructure to perform the job in-house.

Cost efficient: The data entry services of reliable firms can save you up to 30 to 40% of your operational costs. Most US based BPO companies get the work done overseas in countries where costs are low and this helps them offer solutions at affordable rates.

Helps focus on core business activities: Business data entry jobs are time consuming. Outsourcing helps you to save the valuable time and effort required to perform monotonous back-office tasks. This would help you focus on your core business functions with greater efficiency.

Reduce risk: Outsourcing helps your organization to entrust your back office tasks to experts in the field. This ensures that you get the jobs done efficiently and reduces the risk of errors.

Enhance productivity: Data entry outsourcing reduces the workload of your staffs, which considerably enhances their efficiency and productivity.

Briefly, outsourcing services are a great advantage for organizations that are determined to streamline their business functions and stay ahead of competition. The countless advantages of data processing services is encouraging more and more firms to resort to outsourcing the work.

Disadvantages of 

Outsourcing Services

Though data entry services have some demerits, these are completely outweighed by the merits. The disadvantages could include:

Exposure of confidential data: When the major back-office data entry tasks such as payroll processing, accounting, claim processing, HR and recruitment and other processes are outsourced, there is a risk of exposure of your personal and confidential information.

Insufficient focus: Most outsourcing service providers might deliver data entry services that do not focus on your requirements.

Erratic output quality: If the outsourcing partner you had chosen is not on the top of things, you can face problems such as inappropriate assignment of responsibilities, lack of quality in output, delayed delivery, and so on.

Experienced Outsourcing Partner for the Maximum Advantage

It is obvious that the advantages overrule the disadvantages of outsourcing. Outsourcing to an experienced outsourcing company can ensure premium quality data entry outsourcing services. Reputable BPO companies also take great care to deliver customized solutions at affordable charges.

About Julie Clements

Julie Clements

Joined the MOS team in March of 2008. Julie Clements has background in the healthcare staffing arena; as well as 6 years as Director of Sales and Marketing at a 4 star resort. Julie was instrumental in the creation of the medical record review division (and new web site); and has especially grown this division along with data conversion of all kinds.