Data Entry Outsourcing Advantages and Disadvantages

Data Entry Outsourcing Advantages and Disadvantages

To cut down on cost, time and effort, enterprises across the globe are looking at outsourcing their data entry services to an off shore location. As your outsourcing vendor works on a different time zone, it helps your business to provide 24/7 service. However, you have to consider the advantages and disadvantages of data entry outsourcing first. With proper understanding of outsourcing process, where you assess the pros and cons of data entry outsourcing, you will be able to decide whether it is a right option for your business.

Advantages of Data Entry Outsourcing

  • Focus on core business activities: By outsourcing your non-core business activities, you will be able to save time and effort required for monotonous back office tasks. This in fact will help you to focus on core business activities with greater commitment.
  • Save a lot of money: Outsourcing data entry services to an off shore location will help you to save a lot of money (over 40% of your operational costs). Moreover, you will be able to offer your solutions to your clients at competitive rates.
  • Reduces overhead expenses: Outsourcing back office work, you will be able to cut down on overhead expenses in the form of additional staff, infrastructure, salaries, compensations and more for your in-house data processing staff.
  • Reduce your risks: When you outsource data entry services, you are entrusting your back office work to the experts in the domain. This helps enterprises to get the job done in an efficient manner and minimize the risk of errors.
  • Reduce workload and enhance productivity: Outsourcing data entry services elsewhere will reduce the workload for your staff and increases their efficiency.

Disadvantages of Data Entry Outsourcing

  • Exposing confidential data: When major data entry services such as HR, recruitment, accounts and finance, payroll processing and claims processing are outsourced, you risk exposing confidential information to a third-party.

    Solution: Ensure your outsourcing vendor has a strict security policy in place such that there will be no leakage of information.

  • Inadequate focus: An outsourcing vendor might be working with various clients and providing expertise in their data entry services work and might not be able to provide their complete focus on your organization's tasks.

    Solution: Make sure you have set quality standards for your data entry services work before signing off with an outsourcing vendor.

  • Cultural difference: Many projects that have been outsourced are facing issues mainly due to not understanding the culture of the outsourcing provider and the location. This leads to poor communication channels and lowers productivity on a regular basis.

    Solution: Choose an outsourcing vendor who has great reputation in the market and work with them on a trial period before signing up with them for a long term.

  • Inconsistent quality outputs: There might be a chance where you choose a wrong outsourcing partner; some of the common problems that arise are inconsistent quality outputs, delay in deliverables, authorizing inappropriate responsibilities and more.

    Solution: Emphasize on timeframes and quality standards in the beginning and work with them for a trial period and then make an informed decision.


Of course the advantages far outweigh the disadvantages of outsourcing. When you outsource your data entry services to an experienced outsourcing vendor, then you can be rest assured that the work will be accurate and of highest quality with necessary security protocols in place. As an enterprise think twice before what work needs to be outsourced and how much of data needs to be shared with the third party outsourcing vendor and benefit from the advantages of outsourcing your data entry services.

About Invensis:

Invensis has been providing high quality data entry services for the past 16 years for Fortune 500 and Fortune 1000 companies across the globe. The company offers you unprecedented and accurate data entry services at competitive price. Invensis technologies provide data entry services which include: order entry and processing; purchase order management; transaction data processing; data mining; CRM database management; records indexing, survey forms processing and more. We pride ourselves by being one of the top ten data entry service providers in the world where our services and solutions have enabled businesses to accelerate growth, cut cost and improve their operations.


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