What are the challenges of outsourcing data entry and how can you overcome them?

Summary: Outsourcing comes with several challenges that make you question whether you’re doing it right or if it’s a waste of time. However, with the right outsourcing provider, these challenges can seem distant. In this blog, learn about the challenges of data entry services and find solutions for each of them.

Key Takeaways

• Communication gaps arise due to language, time zone, and cultural differences, affecting efficiency.
• Ensure data security by checking BPO practices and signing a non-disclosure agreement.
• Choose a provider with resources to meet your deadlines and urgent needs.

Several companies depend on data entry, which is a process of collecting and entering information into a computer system. Even though it sounds easy, it can be quite a challenge to keep up with the ever-increasing mountain of data. Data entry services have become much easier thanks to technology, but there are still some challenges that organizations must face and conquer.

Although outsourcing these services helps businesses cut expenses, there are certain negative considerations as well. Many times, companies look for ways to stay competitive by cutting expenses; outsourcing lets them do just that by freeing resources and saving money on salaries and infrastructure. However, issues like ensuring data security and maintaining quality control with an outside service provider call for careful preparation and honest communication.

1. Communication Challenge

This challenge arises when the company is outsourcing the work (the client), and the data entry service provider cannot communicate clearly and effectively. Several aspects can cause these problems: 

• Language differences: The client and the service provider may not speak the same language perfectly, which could make it hard to understand what to do, how to send data, or what level of quality is expected.

• Time zone differences: When you work with an offshore provider, there may be big time zone gaps. This can make it hard to talk to each other in real time and add time to solving problems or answering questions.

• Cultural nuances: Differences in culture can make it hard to understand how to communicate, what is expected, and when things need to be done. Direct speech, for example, might be seen as rude in some cultures.

Solution:

Fortunately, there are means to close these gaps in communication. Start with clear directions, including specifics and examples. Standardized procedures keep things in line. Video conferences and project management tools let everyone remain in touch. On every team, a committed contact person maintains harmony. Ultimately, frequent meetings—even via email—allow updates and problem-solving. 

2. Data Security

Data entry outsourcing entails sharing private information—such as passwords or finances—with another company. This creates security issues since inadequate data security might result in leaks of your data. As a result, these invasions might compromise your reputation and cost you money.

Solution:

To protect your data, you should investigate the security measures and privacy practices that the BPO employs. Thus, make certain that their employees adhere to the regulations. Also, you should get a non-disclosure agreement (NDA) signed by them so that they are legally obligated to keep your information confidential. 

3. Completion Time

Indeed, getting data entry work done on time is very important, especially in fast-paced fields like healthcare. As a result, delays in entering data can slow down important tasks and affect the care of patients. However, managing in-house data entry for extensive work can use many resources. So, make sure you pick the right service provider that can meet your deadlines. 

Solution:

First, consider how much data you usually deal with and how quickly you need it processed. After that, look at the provider’s resources. Check how many experienced employees they have and what kind of technology they use. If your company needs urgent data entry with quick turnaround times, ensure they have an emergency helpline. When you choose a provider of data entry services, be clear about this need. It could make a big difference. 

4. Quality Control

Although outsourcing data entry increases efficiency and saves money, it separates your business from the actual work. This can make guaranteeing excellent quality more difficult. Your credibility and client satisfaction may suffer if the outsourced data contains mistakes. Thus, selecting a trustworthy supplier with high-quality control is essential!

Solution:

Set quality standards for the data entry tasks that are clear and can be measured. This could include minimum levels of accuracy, formatting needs, and acceptable levels of error. Set up an intense screening process: Carefully look at potential outsourcing partners, how they control quality and how well they’ve done in similar projects. Talk to the outsourcing partner about your quality standards and give them feedback regularly.

5. Raised Error Rate

One major concern about outsourcing data management services is the increased error rate. These typos and mistakes may affect reports, waste time and money correcting them, and even upset consumers. These errors are more likely to occur if the hired company needs to equip their employees or closely review their output properly. 

Solution:

As mentioned earlier, clear communication is the key to outsourcing going well! Make it clear how you want the data to be formatted, define key terms, and even give examples to keep things simple. Talk to the company about how to train their staff to meet your needs, such as the type of data you need and the quality level you expect. 

6. Cost Administration

At first, hiring someone else to do your data entry might seem like an excellent way to save money, but extra costs often cancel out those savings. You should consider how much time and money it will cost to manage the outsourcing company and possibly have to return to the table later to change the contract terms. All of these can add up over time. That’s why businesses should carefully think about all the costs before they choose to outsource.

Solution:

We suggest that you don’t just look at the hourly rate. Consider the time it might take for management tasks like communicating, keeping an eye on the project, and ensuring good quality. To avoid unexpected cost increases in the future, make sure your contracts are clear and include pricing structures, service level agreements (SLAs) with precise quality standards, and terms for possible reconsideration. Keep track of all the costs of hiring someone else to do your data entry. This includes the provider’s fees, the cost of running the business, other expenses, etc. 

7. Increasing workload

Another problem that can come up when you outsource data entry is how to handle situations where your workload suddenly grows. Consequently, your outsource provider must have the ability to scale resources up or down quickly. They should also know how to deal with these changes by planning ahead.

Solution: Look for a company with flexible staff that can expand rapidly as needed. Try to work out a contract where your payment will vary depending on the amount of work you assign them. If possible, start small projects with the company first to observe their handling of workload fluctuations. This will help you know they can keep up with hectic situations. 

Conclusion

Clearly, outsourcing data entry will increase your general efficiency and save you a lot of money. Potential drawbacks, including data security concerns, poor communication, and maintaining quality control, should be known, though. Still, you can properly handle these obstacles with the correct outsourcing partner.

Outsource data management services to us. Rest assured that our team is capable of handling all of your data needs precisely and discreetly. Our top priorities are meeting your specific quality standards, communicating clearly, and securely handling data.