For any business, poor data entry compromises data quality and leads to serious consequences such as business inefficiency, missed opportunities, and lost revenue. Data entry outsourcing has emerged as an effective way to avoid these issues and ensure quality data. Partnering with an experienced provider of data entry services also helps organizations enjoy benefits such as reduced operational costs, access to skilled and proficient staff, quick solutions in short turnaround time, more time to focus on core operations, and more.
According to a market research report from Technavio, the data-entry outsourcing services market share is expected to increase by USD 504.12 million from 2020 to 2025. The report predicts that the market will grow at a CAGR of 5.95% during the forecast period.
One of the key factors driving the growth of the data entry services market is the increasing need for cost-effective solutions to improve efficiency. By outsourcing data entry tasks, organizations can reduce operational costs and turnaround times. This allows them to achieve cost-effectiveness and enhance operational efficiency. They don’t have to spend on hiring a process executive and installing data processing technology and devices such as computers, which in turn, reduces the costs incurred on labour and operations.
However, there is a major challenge related to data-entry outsourcing — data safety and security. Outsourcing operations such as recruitment, accounts and finance, and payroll processing may involve sharing crucial data and documents and increase the risk of confidential data becoming exposed to a third party. Increasing incidences of cybersecurity threats in many countries are also posing a serious data security challenge for vendors in the market. To avoid these issues, organizations need to make sure to choose professional business process outsourcing services. Reliable BPO companies will have strict data security policies in place to ensure safe file transfer and management. They will also have stringent quality control measures in place to ensure the utmost accuracy in the final output.
This Technavio report segments the data entry outsourcing market by end-user and geography.
By end-user, the market is divided into BFSI, IT and telecom, manufacturing, healthcare, and others. Banking is one of those sectors that benefit from outsourcing data entry tasks. Maintaining and updating banking transaction data is critical to meet customer requirements. The data entry outsourcing services market share growth by the BFSI segment is expected to be significant during the forecast period. Banking processes are data-intensive, and the transaction procedures may involve a lot of paperwork, and this is the main reason that BFSI companies are outsourcing their content and data management tasks to reliable data entry companies.
Geographically, the market is divided into APAC, North America, South America, Europe, and MEA. Driven by the political and financial stability of countries in the region, the APAC is predicted to register the highest growth, occupying about 46% of the global market share during the forecast period. India, China, and the Philippines are the key markets for data entry outsourcing services in APAC. However, the APAC market growth will be slower than the growth of the South America and MEA market. The market is expected to witness the fastest growth in South America, mainly due to factors such as the proximity of Latin American countries to the US and Canada and the growing demand for nearshore services from the North American countries.
Key market players mentioned in the report include Acelerartech, Acquire BPO Pty Ltd, Arcgate, ARDEM Inc., Cogneesol BPO Pvt. Ltd., CyberData India, DataMondial, Inspur Worldwide Services Ltd., Invensis Technologies Pvt Ltd., and Keyoung Information Ltd. among others. Vendors are focusing on launching innovative products and M&As to remain competitive in the market.