7 Advantages of OCR-based Data Entry Methods

7 Advantages of OCR-based Data Entry Methods
7 Advantages of OCR-based Data Entry Methods

Optical Character Recognition or OCR is widely implemented as a type of data entry method. It is used for converting images of typed, printed or handwritten texts like documents, invoices, computerized receipts, etc., into the form of machine-encoded text so that it can be edited and searched electronically.

OCR has improved the data entry process unimaginably. There are several benefits of the process that can be realized, once we know how it works. These are what makes OCR amongst the proven technologies used to deliver high quality data entry services.

How does OCR work?

Data entry though OCR is a three-staged process. Firstly, the OCR software will pre-process the document. There are several methods of pre-processing which include line removal, segmentation, de-skewing, etc. All these methods aim at ensuring the accuracy of the conversion process.

Secondly, either Matrix Matching or Feature Extraction, which are the types of OCR algorithm, is used to start the conversion process. Matrix Matching, also known as pattern matching, makes use of a stored glyph that is compared to the elements of the document being converted. This method is largely dependent on the document’s font type and size and works best for documents with traditional fonts.

On the other hand, the Feature Extraction is very much similar to the former OCR algorithm. The only difference is that in this case, the stored glyphs are broken down into more specific elements, whichare used for more accurate differentiation between the document’s characters. It is a more complex process as it has specific requirements such as the image must be clean and should have minimum resolution of 300-dpi. Matrix matching can work on images that are even less-than-ideal.

Once matrix matching or feature extraction is completed, the last stage of post-processing begins to ensure the highest level of accuracy in the converted document.

Benefits of OCR

  1. Faster Searches:

    OCR software allows one to achieve more productivity as it enables fast retrieval of data when needed. The efforts and time that the employee used to put in to extract the relevant data can now be utilized for focusing on core competencies.

  2. Reduced Cost:

    Besides helping an organization in cutting down the cost of hiring manpower for data extraction, OCR also helps in reducing several other costs like printing, copying, shipping charge, etc.

  3. Reduced Errors:

    Several organizations are marred by the problem of data loss and inaccuracy. OCR comes to the rescue and helps in reducing errors.

  4. More Storage Space:

    The lesser the documents, the larger the space. Organizations have always wanted to take the ‘Paperless’ approach and OCR just makes it possible. Also, the expenses of file cabinets are saved with OCR.

  5. Ready Availability:

    By scanning the information off documents through OCR, the data can be made available in several different places. One can carry it in a USB drive and retrieve the wanted information with just a few clicks.

  6. Efficient Management:

    With the OCR technique, managing data of confidential documents becomes easy and effortless as everything becomes automated.

  7. Security:

    All organizations give utmost importance to security of documents. Thievery or breaking out of fire does not pose a threat when the documents are scanned and stored in digital formats. Furthermore, the access can also be limited to avoid mishandling of the documents.

The power of OCR can be used by all types of organizations, regardless of the domain they pertain to. Generally, this data entry process is used by healthcare facilities, human resources department of almost all organizations, finance companies, insurance companies, law firms, real estate & mortgage firms, and several others. If you wish to ‘Go Paperless’ in your office, you should definitely get an OCR software.

Outsourcing OCR based data entry is a far more affordable option. You can get the images scanned and converted into a wide variety of formats including .DOC, .DOCX, .XLS, .XLSX, .TXT, searchable .JPEG, .PNG, .GIF, .TIFF, .GIF, etc., at affordable costs. They can convert:

  • Survey forms, bank statements, application forms
  • Magazines, journals, directories,
  • Brochures, catalogs, orders

You can also choose to make use of  OCR Cleanup services to further increase the accuracy of the files. A competent and trustworthy data entry outsourcing service provider will have confidentiality and non-disclosure agreements and secure transfer technologies in place to ensure data privacy and protection.

Also Read Related Articles:

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1 5 Steps to Data Cleansing of Customer Data
2 7 Ways to Improve the Data Entry Process
3 10 Tips to Improve Data Entry Accuracy

For more information on how Invensis Technologies will deliver value to your business through our Data Entry Outsourcing Services, please contact our team on US +1-302-261-9036; UK +44-203-411-0183; AUS +61-3-8820-5183; IND +91-80-4115-5233; or write to us at sales {at} invensis {dot} net


  1. OCR software also helps in boosting productivity through speeding up the data retrieval process.Along, with that it also helps in cost reduction, since it enables the firm to cut down the manpower and carry out data extraction process. This also helps in reducing the costs associated with printing, shipping and copying etc.


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