Your Comprehensive Guide to Outsourced Data Entry and Processing

As your business grows, so does the amount of data you have to deal with daily. At some point, it becomes impractical and costly to handle all this data internally. This is where outsourcing comes in.

Outsourcing data entry and processing can save you time and money while freeing valuable resources.

There are a few things to remember when outsourcing data entry and processing. Such as what type of data you need to be processed and what level of quality you expect. This guide will cover the essential factors of outsourcing data entry services and processing to make an informed decision for your business.

What is Data Entry Outsourcing?

Data entry outsourcing is hiring a third-party company or individual to handle the data entry for your business. This can include tasks such as transcribing paper documents into digital formats, entering customer data into your CRM, or processing invoices and orders.

Below is a more thorough rundown of data entry outsourcing services:

• Document Transcription: This involves converting paper documents into digital formats such as PDF, Word, or Excel. This is often done by scanning the document and using OCR (optical character recognition) software to convert it into a digital format.
• Product Data Entry: This is the process of entering product data into an eCommerce platform or database. This includes the product name, price, description, and photos.
• Claims Data Entry: Customer data is entered into an insurance claims system. This can be time-consuming and error-prone, so it's often outsourced to save time and resources.
• Survey Data Entry: Survey data is entered into a database or spreadsheet. This is often done by scanning the paper survey or transcribing the audio recording of the survey.
• Raw Data Conversion and Data Input: This is the process of converting raw data into a usable format. This can be done by scanning documents and using OCR software to convert them into digital formats such as PDF, Word, or Excel.
• Image Data Entry: This involves converting images into digital formats such as PDF, Word, or Excel.
• Invoice Data Entry: This is entering invoice data into a system. This can be accomplished manually or with the use of OCR software.
• Offline Data Entry Services like Forms Processing: This is data entry from paper forms such as applications, surveys, and questionnaires.

Can Businesses Outsource their Data Entry and Processing Needs?

Outsourcing is often chosen for data entry and processing. From 2020 to 2025, the outsourced data processing market is expected to grow by 6%.

Data processing involves extracting relevant information from various sources and turning it into a legible format. Essentially, it entails acquiring, transforming, classifying, and interpreting data businesses use to plan and forecast strategically.

As a result of their success, some companies need to hire data processing experts with essential data management skills. They also need these individuals to be able to keep up with changes in encoding tools. The solution that is most beneficial and cost-effective for these needs is outsourcing.

Many data processing activities can be completed remotely, making them ideal for an offshore environment. Outsourced data processing will remain simple and effective if your organization is offshore-ready.

The Various Types of Outsourced Data Entry and Processing

Many businesses believe that data entry is straightforward; all you have to do is enter information into a computer. Although it is part of data entry and processing, there is much more to it. If your company is looking for data entry outsourcing services, this section outlines the services you can choose from.

Online vs. Offline Data Entry

The two most common categories of data input services are online and offline. The primary distinction is whether data is processed utilizing an internet connection.

When you don't use the internet for your job, it's called offline data entry. Once data processing is complete, some providers send the files to the client or move them into a designated folder. Online data entry tasks include transcribing information from a paper form to a digital format and filling out offline forms.

Online data entry is the process of inputting information using an internet connection. Online data entry is frequently more comprehensive than offline data entry, requiring specialists to enter, edit, process, and update online databases.

Populating online forms, updating customer relationship management (CRM) systems, entering product information on eCommerce sites, tagging pictures, and annotating data are just a few uses for internet-based data input.

Other Kinds of Outsourced Data Processing

The sort of outsourced data entry services you choose is determined by the kind of work you need to complete. The sort of job also determines the degree of difficulty. Data processing is a term that covers transferring data from one file to another, as well as data analysis and management.

Information that must be entered and processed can come from any source, from digital files to hard copies. For example, some providers transcribe handwritten notes into text, while others convert audio and voice files into text through transcription. They also save the data in a computer database for future reference or usage.

Four data processing tasks are data cleansing, extraction, classification, and conversion.

Data Cleansing

Data cleansing is organizing and reviewing information stored in databases to ensure that it is accurate and up-to-date. Data cleansing is collecting and storing information by eliminating duplicate and inaccurate data. "Data cleaning" is sometimes used interchangeably with "data scrubbing."

When you outsource your data cleansing, the following tasks will be completed for you:

• CRM update
• Database follow-up
• Data normalization
• Researching and resolving duplicate records
• Ensuring captured data is complete
• Modifying, filtering, and standardizing data

Data Extraction

Extraction is gathering and modifying information for future use or analysis. This technique helps store, analyze, and filter data while producing reports based on it. This sort of outsourced data handling is more concerned with altering data in a way that is appropriate for its intended use.

When you outsource your data extraction, the following tasks will be completed for you:

• Data Capturing
• Data Filtering
• Database Selection
• Figures and accounting data entry
• Product or photo editing

Data Classification

Data classification is sorting information into specific categories based on certain characteristics. Data classification organizes data so it can be easily accessed and used later. It is especially useful for machine learning software and artificial intelligence (AI).

When you outsource your data classification, the following tasks will be completed for you:

• Classifying data
• Data tagging
• Data indexing
• Data annotation
• Product data entry
• Classifying business cards

Data Conversion

As the name suggests, data conversion transforms information from one format to another. Data conversion is common when migrating or updating software and systems. This can also refer to changes in file type, such as converting an audio file into a text document.

When you outsource your data conversion, the following tasks will be completed for you:

• Audio transcription
• Collecting data from photo formats
• Data typing
• Converting handwriting to digital text
• Photo Editing

Reasons Why Organizations Outsource Data Entry and Processing

Data processing is essential for all companies but can be time-consuming, so many outsource the task.

Processing data should not overburden your main business operations or burden your employees, who should concentrate on more essential tasks. To manage data processing more quickly, organizations may always create larger teams.

Creating and maintaining an in-house team of data operators can be expensive, preventing many businesses from reaping the benefits of big data. Fortunately, online data entry services allow you to efficiently manage data processing and convert data into valuable assets without breaking the bank.

Below are a few reasons your firm should consider outsourcing data entry:

Overcome the Scaling Difficulties

Digitization is an ongoing journey, not a final destination. So as your business grows, you'll need a data management system that can evolve and scale to keep up with demand.

Recruiting and instructing new staff can be expensive and time-consuming, so it may make more sense to outsource data entry to a company specializing in the task. This will free your human resources department to focus on more pressing matters.

Improve the Data Quality

Accurate data is critical to making sound business decisions. When you outsource data entry, you can be confident that the task will be carried out by professionals with the necessary skills and experience.

The information-security sector, in particular, must be particularly cautious since low-quality data may severely damage their operations and clients' trust. So, to protect your business's reputation, it may be best to outsource data entry and processing.

Address Edge Cases Instantly

Many people believe that data processing should be automated. However, in the case of automated data processing, anomalies can occur, and you'll need employees to deal with them.

Although automation can now manage many data processing activities independently, it's not 100% accurate. For instance, the error rate for optical character recognition is between 5-20%.

On the other hand, automation systems can help identify possible data entry and processing issues by employing exception monitoring algorithms. Although human intervention to make manual corrections is still essential, it may add time to the task.

Outsourcing data processing to a third-party company can help you speed up the process of dealing with edge cases since they're likely to have the resources and expertise required to address them quickly.

Reduce Project Cycle Time

Data entry projects should never be rushed to avoid compromising quality control, especially for sensitive transcriptions such as medical or legal records. However, being timely is crucial, and data shouldn't be delayed when it's needed for report generation.

And your employee already has their hands full with other responsibilities, so it may not be realistic to expect them to transcribe data quickly without adversely affecting the quality of their work. In this case, it might make sense to outsource the task to a team of experts who can complete it quickly without compromising quality. They can achieve this by deploying a team of professionals who can work shifts to finish the job on or before the time.

The Significance of Data Processing in Business

Quality data entry and processing are essential for any business looking to develop and grow. Without accurate data, no business can make sound decisions. Therefore, all companies rely on data to inform their strategies.

Data entry and processing play a vital role in businesses for the following reasons:

• Elaborated records management systems keep all essential commercial data organized for future reference.
• Data quality significantly influences employee efficiency, which has a cascading impact on the entire organization. If a critical piece of business information is unavailable, it can have far-reaching ramifications for other departments.
• The company's level of organization can be determined by how systematic and organized its data is.
• Data is the foundation for all business intelligence (BI) applications.
• Companies can lose money and resources if their data entry is inaccurate.

The Bottom Line

Outsourcing data entry services save your employees' time so they can focus on more pressing matters while ensuring that the task is carried out accurately by professionals.

Moreover, it can help you address edge cases quickly and reduce project cycle time. Data processing is essential for any business looking to develop and grow since accurate data is necessary to inform strategies.

Thus, outsourcing data entry and processing is a wise decision for businesses of all sizes.

If you're looking for a reliable data entry partner, look no further than Alpha BPO. They offer high-quality, cost-effective data entry services that meet the unique needs of your clients.