Data Entry Outsourcing Guide For Small & Medium Businesses

Data Entry Outsourcing Guide For Small & Medium Businesses

Data entry forms the foundation of every enterprise database. However, consolidating thousands of records accurately in a single dataset requires precision, care, and speed. This is primarily why businesses prefer outsourcing such tasks to external providers.

Ideally, a data entry service provider comes with experience in providing data entry services, with the right team and top-notch tools to ensure high-quality support. They offer dedicated assistance, so your team is freed from the stress of data management and can instead focus on driving utility from that data. Apart from these, there are many other benefits of outsourcing data entry services. However, if you go down this path, it is important to be very careful with the company you choose.

Read on to know how to go about this.

Is outsourcing data entry services a smart decision for your business?

While the doing-it-yourself trend is at its peak nowadays, for businesses, it’s not always a smart decision. Data entry isn’t a straightforward task and requires many skills, experience, and tools. Building a value-providing in-house team will require a lot of time, expenses and strong management. While on the other hand, if you outsource data entry services, you get the below-mentioned benefits:

1.  Data is secured & organized systematically

An organized, result-oriented approach to data entry is mostly absent in a newly established in-house team. That could be due to the absence of experience or insufficient strategizing. Outsourcing agencies have a team of experienced professionals and hence systematically deliver organized data. Also, the majority of outsourcing agencies are well-equipped with protocols & right tools for keeping your business data safe.

2.  Saves Time for Priority Work

Data entry requires inputting data manually into a database (could be an excel, a cloud-based system, a CRM, etc.), which consumes a lot of time. Additionally, if you need to digitize paper-based records (which may happen in certain cases), the entire process could end up taking months. Outsourcing agencies can accurately and rapidly enter all your business data into the system. This will allow you to invest your saved time in other key areas of your business.

3.  Cost-Effective

If your business plans an in-house team, it will require infrastructure, hiring, training, and paying every month. Irrespective of business needs, the salary will be drawn throughout the year. It’s smart to outsource data entry services from agencies because they’re paid on an hourly basis or on a contract basis.

4.  Quick Turnaround Time

Apart from being highly effective, data entry outsourcing agencies are also highly efficient. They have a vast team dedicatedly working on data entry for years. Additionally, they have all the latest technologies & methods to get your work done before the deadline.

5.  Workforce Management

Getting this tedious task done by an in-house team is known to burn out employees. This often results in higher management failing to manage their workforce. Whereas, when outsourcing data entry services, you’re also transferring all this headache to the agency.

The above-mentioned 5 reasons clearly state that outsourcing data entry services is indeed a smart choice for businesses. When your business outsources services, you’re ensuring cost-effectiveness, managing pressure & time saving, and still getting the best results.

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Important Factors to keep in Mind while Outsourcing Data Entry Services

1.  Evaluate Business Requirements

Calculate your data entry amount, this will give a cost estimate. Check different departments and evaluate data entry-dependent work, now analyze if outsourcing data entry services reduce operational costs and improve efficiency? If yes, you can now break down your needs and proceed to the next step.

2.  Shortlist Outsourcing Agencies

Make a list of data entry outsourcing agencies by checking their flexibility, scalability, customer support, turnaround time, data security, the technology they have and the level of customization they’re offering.

3.  Ask for Demo

It’s now common to ask outsourcing agencies for demo work, and it’s usually free of cost. By doing this, you will get to know if they’re good on their brochure only or if they can actually deliver quality data & commitments. This stage will further narrow down your list.

4.  Compare & Finalize

Now compare all the features & facilities being provided by the shortlisted agencies. Check which one can effectively implement your feedback & the changes and keep customer support/communication smooth. Once all the above factors are well-analyzed, it’s now safe to go for the cheapest one.

5.  Checking Quality of Work & Data Security Regularly

Once you have started working with the data entry outsourcing agency, it’s equally important to regularly check your data security. If an outsourcing agency is allowing WFH or allowing their WFO employees to take office laptops at home, then you must ask for additional security options. Also, setting up a small in-house quality team (less than 5 employees) is a smart move.


From the above-mentioned benefits, it’s certain that outsourcing data entry services is a smart decision and the in-house team isn’t suitable for this task. Outsourcing will not only save your in-house team from performing this tedious task but will also yield a far better and high-quality outcome at the end.

However, you must put the required time and effort into finalizing the data entry agency. Use above-shared factors to make your decision and don’t keep cost factors as primary consideration.

Author Bio

Jake Wilson is a content strategist with experience in the eCommerce and data domains, particularly in the B2B sector. He has spent his 10+ years-long career creating content that revolves around the latest and most significant trends and evolutions in the global data and eCommerce sectors. He has created hundreds of articles around enterprise data management, email list building, product data entry, listing development, data enrichment, and search engine optimization, and has also consulted businesses on managing major data systems, CRMs, ERPs, eCommerce marketplaces, and development platforms like eBay, Shopify, Magento, and others.

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Shiva Ram is a SEO Copywriter, Content Creator and he is specialized in Digital Marketing. He had the interest to write content related to technology, Business, Apps, Digital Marketing and many more.

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