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Outsourcing Data Entry Tasks: Why and How?

Data entry outsourcing has been a trend for many companies as it has proven to be efficient and effective. The IT outsourcing industry was worth $92.5 billion in 2019 and is expected to generate around $430 billion in revenue by 2023.

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Outsourcing data entry tasks can provide numerous advantages, including:  


1. Saving processing time: Although data entry seems easy, it can be time-consuming, especially when a company's data volume increases. Outsourcing can speed up processing, particularly for critical tasks such as online insurance claims processing, where quick data processing allows insurers to respond to their customers faster, contributing to higher customer satisfaction. 

2. Ensuring scalability: Processing data requires resources that can easily be compromised by sudden influxes in the number of documents that enter an organisation. Hiring additional data entry processors can be costly and takes time. Partnering with an outsourcing provider can ensure that the company can meet its processing service-level agreements (SLAs). 

3. Access to a larger talent pool: Outsourcing companies often specialise in hiring and training personnel who are skilled in data entry tasks. It can give companies access to a larger and more competent pool of talent to work on data entry tasks, enabling them to focus on their core competencies. 

4. Reducing training and onboarding costs: Outsourcing can help companies save time and money by sending mundane but important tasks to an outsourcing organisation. This practice can reduce turnover rates in data processing roles and minimise the need for permanent training.

5. Lowering labour costs: Outsourcing mundane and repetitive tasks, such as data entry, can help companies save money by reducing the cost of recruitment, hiring, training, and employee benefits. It also saves on overhead, resources, and equipment. 

6. Increasing job satisfaction for employees: Outsourcing can lift the burden of daily data entry tasks from employees, giving them more time to focus on meaningful and fulfilling aspects of their job. 


Companies can outsource any type of document; however, the cost may vary depending on the outsourcing company's specialisation. ScaleHub offers data entry solutions through its global BPO crowd community that provides specialised processing solutions for various document types. 

Data accuracy can vary depending on need, expertise, and organisation. Service-level agreements (SLAs) define the expected level of service and metrics by which that service is measured, including remedies or penalties should agreed-upon service levels not be met. 

Data privacy laws apply when outsourcing data entry and companies should check the data privacy policies of the outsourcing organisation. Country-specific laws can be challenging, especially if the BPO has a limited footprint. The BPOs should have trained professionals in processing sensitive personal data and documents with regulated privacy considerations. 

The key to a successful relationship with a BPO is identifying specific data entry tasks that cause processing bottlenecks and documenting them. This information can help inform the questions to ask potential providers and the requirements set for accuracy, performance, volume spikes, skills, and types of documents. 


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