What You Need to Know About Outsourcing Data Entry

Curious About Data Entry Outsourcing

The entry of data is a specialized and time-consuming task that needs to be assigned to someone with the right skills.

Most startups and SMBs cannot afford to hire a full-time employee specifically to handle data entry. It is not uncommon for even large corporations to outsource any additional data entry work occasionally.

How Do You Go About It?

This complete guide to data entry outsourcing will highlight the three biggest benefits of outsourcing.

You’ll also learn how to manage your service provider effectively and 5 things to keep in mind when choosing them. The final step in our guide is highlighting three excellent companies that provide data entry services.

Let’s get started.

What is Data Entry Outsourcing?

The term “data entry outsourcing” refers to hiring external help to perform data entry for your business.

The following are examples of data entry jobs:

  • Handwritten document transcription
  • Claims data entry
  • Data entry for products
  • Filling out MS Excel sheets for accounting in the back office
  • Data entry for surveys
  • Conversion and input of raw data
  • Document management services
  • Data entry for images
  • Data entry for invoices
  • Offline data entry service like forms processing

What Are The Benefits of Outsourcing Data Entry?

Outsourcing data entry is all about saving time and money.

The task will be handled by a third party, so you can focus on other parts of your business such as marketing, finance, and operations.

How Does it Usually Work?

A data entry outsourcing project can be approached in two ways:

  • Onshore outsourcing: the process of outsourcing within your own country (on-site or remote). While it can be an expensive business process, it’s easier to communicate and collaborate with the outsourcing partner.
  • Offshore outsourcing: The process of hiring a foreign entity to perform your data entry work, such as India or the Philippines. There might be some collaboration issues associated with this method, but it usually saves you a lot of money.

The 3 Biggest Benefits of Outsourcing Data Entry Process

The outsourcing of data entry is becoming increasingly popular across a wide range of industries. There are many companies looking to outsource data entry services, from accounting to healthcare.

There are three key reasons for this:

A. Cost Savings

Data entry tasks can be significantly reduced by outsourcing them to a service provider.

Here are three reasons why:

  • It doesn’t take a lot of resources to hire and train an in-house employee to do this.
  • There is no need to invest in data entry software.
  • Employing someone saves you money on operational costs like allowances and insurance.

You can also benefit from outsourcing by hiring an offshore data entry service and reducing costs.

When compared to hiring a professional from the United States, hiring data entry professionals from the Philippines is much cheaper.

What About The Quality of The Work?

If you outsource to a service provider with a good track record, you won’t have any problems. The professionals they employ are highly trained and experienced, so you’ll receive a high-quality service.

B. Better Accuracy

Since data entry is what they’re trained to do, they’re skilled at their job.

Their work is therefore much less likely to be mistaken as a result.

A skilled and experienced outsourced staff will provide more accurate and efficient data entry at a lower cost than an inexperienced in-house team, since they bring their own professional experience and tools.

C. Increased Business Focus and Productivity

There is a good chance that your entire organization is pretty busy with its core responsibilities.

As an example, a market research company might focus on data mining and processing, while a real estate company might identify excellent properties.

It wouldn’t make sense to assign data entry work to any of those employees since it would take time away from their specialty.

Their productivity can be affected by this, which ultimately affects the effectiveness of your organization.

You can let your employees focus on what they do best by outsourcing these headaches!

The 5 Things You Need to Consider Before Outsourcing Data Entry

Those were some impressive benefits, weren’t they?

It is important to take the time to carefully select an outsourcing partner!

Here are 5 things to consider when picking a data entry company:

1. Cost-Benefit Analysis

Make sure you do your math before making any hiring decisions.

It is important to determine exactly how much your bottom line will benefit from data entry outsourcing.

The cost of doing the job in-house with your own employees will have to be calculated first.

As soon as you have the data, you can use it as a reference when choosing data entry professionals. It is best to avoid hiring a professional or agency that would cost you more than doing it yourself.

2. Verify The Service Provider’s Security Measures

When dealing with sensitive client or company data, security is always a priority. The importance of this becomes even more evident when sharing data with an external entity such as an outsourcing firm.

It is important to know what security measures the company/agency offers when selecting a data entry service provider.

Generally, these measures must meet industry standards.

The healthcare industry, for example, would face serious legal issues if its information pipelines weren’t HIPAA-compliant.

If your client data is not handled securely, you can also open yourself up to lawsuits if you are in the financial sector.

The bottom line is that no matter what industry you’re in, whether it’s e-commerce or accounting, make sure the company you hire is equipped with the latest data security measures.

3. Evaluate Your Needs

It is important to map out your business needs before hiring a data entry specialist company.


The following are examples of custom requirements (specific requirements) that businesses often have beyond just data entry:

  • Data capture
  • Data mining
  • Data conversion
  • Data extraction

Consider a company that can handle your versatile data entry requirements if you need some advanced data analysis and processing.

In addition to 24×7 customer support, you should also look for a company that offers this service. In this way, if there are any issues, they can be resolved quickly.

The service provider must also use the most up-to-date technology and software in order to complete the data entry work. If you were to buy the software yourself, you would have to pay more but get a better quality service.

4. Turnaround Time

When your organization regularly performs data entry tasks, it’s important to check the turnaround time of the service provider. The importance of this is even greater when you work in an industry that is time-sensitive like healthcare.

Provide skilled professionals and modern technology to your data entry operator so they can handle the workload efficiently.

5. Reputation

Data entry experts would definitely be a good choice since you are handing over a critical business function.

For sensitive industries like medicine and insurance claims processing, this is essential – not just for security reasons, but also because human errors cannot be tolerated.

Research the outsourcing company you plan to work with carefully.

Ensure that the service provider is financially stable because you do not want to outsource your data entry to a company who cannot afford the necessary resources.

If you want to be extra-sure, look at the customer testimonials to see how they deal with clients and if they are satisfied with their service.

What You Need to Know About Managing Your Outsourced Data Entry Professionals

Despite outsourcing’s usefulness, it comes with a number of challenges when it comes to management and collaboration, especially when it involves remote workers.

It is, however, possible to overcome this problem with the right set of tools.

If you plan to outsource data entry, you need three types of software:

1. Collaboration and Communication Tools

The importance of effective communication cannot be overstated, right?

The last thing you want is to have errors in your data as a result of a miscommunication.

You cannot rely solely on emails for all your communication needs. The use of emails for task-relevant conversation is very limited. A specific set of data cannot be quoted and then a comment thread can be created for further discussion in an email, for example.

The tools you need to collaborate with your team will help you do this.

Three tools you should always have in your toolbox for business communication are:

  • Instant messaging tools like Slack make it easy to organize task-relevant communication channels and share files.
  • Video conferencing tools like Zoom and Microsoft Teams are ideal for virtual meetings with your team and hired professionals. It is also possible to share your screen for detailed explanations.
  • Cloud storage and document collaboration tools like Google Drive and Google Sheets. The platform not only offers security for your data, but also enables real-time collaboration on your datasheets through commenting and editing.

2. Tools For Tracking Productivity

Do you want to make sure your data entry experts only charge you for productive hours spent on your project?

Time Doctor is a powerful time tracking software.

What is Time Doctor?

time doctor


Time Doctor is a time and productivity tracking software used by large companies and small businesses to manage in-house employees and external contractors efficiently.

You can get help from Time Doctor by:

  • Reporting on the performance of the hired data entry experts in a detailed, comprehensive manner.
  • Through various platform integrations with apps like Trello and ClickUp, you can track productivity across your work apps.
  • Make sure that your data entry professionals are actively working during working hours.
  • Analyzing where your data entry professionals spend their time.
  • Time reports are used to automatically generate invoices.
  • A functional Android app for tracking time remotely.

Bottom line: Time Doctor helps you ensure that your data entry professionals make the most of their time.

3. Tools For Project Management

Working with outsourced data entry experts can make streamlining your business operations more challenging.

A data entry project should integrate well with the rest of your project work environment. You can, in this way, make sure that all of your business processes run smoothly and there are no hiccups in productivity.

It is important to ensure the following:

  • The way you assign tasks is organized.
  • It is possible to keep track of their progress.
  • There is a systematic workflow charted out for them.

These are just some of the things you can accomplish with the help of a project management tool!

It is also possible to perform advanced management functions such as prioritizing tasks, mapping out dependencies, and tracking overall progress.

The only thing you have to do is choose one of the many project management tools available such as Jira, Trello, and ClickUp.

Bonus Tip: Time Doctor integrates with all these tools to ensure your data entry professionals remain productive.

Data Entry Outsourcing Services

Data Entry Outsourcing Services generate fast revenue, leads, management, organization, and save time. The back-office processes at many industrial and marketing companies are extremely time-consuming. They have to deal with, such as accounting, billing, purchasing, invoicing, and procurement. This process results in an overload of documents and paperwork, which if not managed properly and in a timely manner can add more pressure to business operations.

You can customize Cleardata’s services to meet your company’s needs. Our data handling packages can be customized to suit any business, whether your data entry processes require a complete overhaul or we work with your existing systems.

Outsourcing services include:

  • Form design: Cleardata can design forms and surveys with your intended software solution in mind, improving data consistency and reducing time consumption.
  • High volume data entry: Up to 210 pages per minute can be scanned by our high-speed Kodak scanners.
  • Quality checking services: Cleardata passes its data through a 200% quality check process.
  • Scanning and automated data capture: This service reduces the time it takes to enter data by over half through the use of intelligent capture technology, which converts handwritten data into digital format.
  • Mailroom service: Rerouting your mail to us avoids delays in processing and saves staff time. You can trust our team to open, sort, and process your data in a secure environment.

The top 4 BPO Companies For Outsourcing Data Entry Services

There are tons of outsourcing partners to choose from, so finding the right partner can be challenging.

It’s not a problem, we’ve already done the research.

The following companies provide excellent outsourcing services for data entry:

1. DataPowerHub


The Ultimate Guide to Data Entry Outsourcing (2023)

Among the leading companies in the field of data entry outsourcing, DataPowerHub is a global leader. The company has been serving this industry for over 10 years and has completed more than 15000 data entry projects. Their excellence was recognized by 18+ awards.

It is well known that they offer a money back guarantee that is super-confident. In the event that they are unable to maintain 100% accuracy, they will return 200% of your payment. The company offers 24/7 client support in more than 50 different languages. Their services include optical character recognition, data entry, data mining and cleansing, data conversion, data management, data processing, catalog management, and internet and web research.

2. Invensis

invensis data entry bpo

Data entry outsourcing company Invensis provides high-quality, cost-effective services for your data management needs, with 20 years of experience.

Their customer service department is available 24 hours a day, 7 days a week, and they offer multilingual online data entry projects. The company also offers services such as data mining, data cleansing, data conversion, and data management.

3. Oworkers


Oworkers is an outsourcing company with 15 years of experience providing multilingual data entry solutions to global clients. Data annotation and content moderation are also offered by Oworkers, a company with a strong team of professionals from countries like Bulgaria and Egypt.

4. SunTec India

suntec india

Over the past two decades, SunTec has become one of the industry’s leading low cost data entry service providers. As far as information security and data confidentiality are concerned, they follow the ISO and HIPAA guidelines. A range of data management and processing services are also available according to your needs.

Final Thoughts

The benefits of outsourcing data entry go beyond saving your in-house team from tedious, repetitive work. You will also benefit from a more accurate, time-efficient data entry process.

Ensure that the data entry service you outsource is secure and accurate by outsourcing carefully.

To determine which data entry provider is right for you, carefully review the list of providers and tips we provided here.

Once you’ve completed that, just use the tools listed here to outsource your data entry activities and you should be able to save a ton of time and money!

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