Is Outsourcing Your Data Entry the Right Move?

Key Takeaways:

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• Outsourcing data entry is a cost-effective strategy for a core business function.
  
  
• With more access than ever to global talent, there’s never been an easier time to outsource.
  
  
• Selecting the right BPO provider is crucial for data security and operational efficiency.
  
  
• Implementing the right monitoring software for PC, such as Insightful, is important for effective data entry management.

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Read time: 7 minutes

Data is everywhere. 
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The human body sends 11 million bits per second to the brain for processing. Humanity has surpassed a zettabyte, an almost incomprehensibly large number, in the digital universe.
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As the world becomes increasingly globalized, the ability to access and process high-quality data will undoubtedly continue to reshape economies. 
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Not to mention that the need for data has increased in recent years to fuel technological advancements and feed GPT AI software which continues to evolve and shape the way we work.

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By the end of 2023, the annual revenue of the global business process outsourcing (BPO) industry was set to reach an eye-watering $0.35tn. Data entry BPOs represent one of the largest growth sectors in this industry. 

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The following article will explore how enterprises can save capital, time, and focus by outsourcing data entry services. Plus, they can use the best pc monitoring software to carry out remote work monitoring and make sure the work is done correctly, and within agreed-upon timeframes.
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The Evolving Landscape of Data Entry‍

2023 saw the global BPO industry grow exponentially to meet an expected valuation in the trillions.
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There are two main reasons for this:
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1. The rising popularity of remote work models has made it increasingly easy for businesses to access international talent and tap into the freelance market for data entry.
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2. Language model-based chatbots such as OpenAI’s ChatGPT thrive on data, and since AI has the potential to unlock limitless potential across industries, it has placed further emphasis on the need for high-quality data - and lots of it.
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However, despite much greater access to international talent for outsourcing, many businesses still tend to spend an excessive amount of valuable in-house time sifting through vast amounts of data, wasting precious resources in the process.

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For tens of thousands of companies who depend on data to power their business, data entry BPO providers are a godsend. But, with the sensitivity of data, their adoption does take careful consideration.

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If you’re considering outsourcing your data entry to a data entry BPO or simply want to learn the best practices of business process outsourcing, there are a few questions to ask yourself: 

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• Have you experienced quantifiable inefficiencies in daily operations due to the repetitive and time-consuming nature of data mining and data entry? 

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• Do you have the proper software stack to scale your business operations?

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• How valuable is enhancing operational effectiveness to your business?

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Business process outsourcing can help you build toward greater operational efficiency in your business while adding competitive advantages across the board.

Explore and Exploit Wage Arbitrage

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The ability to work with anyone worldwide means businesses have access to extremely qualified talent, often at a fraction of the price of local talent. Many companies even fully outsource most of their non-critical business operations to data entry BPOs in India, China, the Philippines, and Ukraine. 

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For example, a data entry clerk in the United States can cost around $11-27 per hour, whereas offshore options, such as India, can cost around $1-12. Since data entry is so process-oriented, the results are generally the same.  

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The most successful businesses tend to have a deep understanding of which activities are their true competitive differentiators that must remain in-house, and which mostly serve as a function to facilitate those mission-critical functions. These businesses tend to outsource the latter.  

Reveal Productivity Insights Otherwise Left in the Dark 

Every business has bottlenecks that prevent them from scaling as efficiently as possible.

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Data entry, as one of the more rote and repetitive tasks, is one of the most popular business processes to be outsourced. By outsourcing this core business function you can remove company-wide bottlenecks and free up critical resources.
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By outsourcing a time-consuming task like data entry, you can free up employees to focus on more meaningful activities that move the needle toward your strategic goals. Since another economic recession could be right around the corner, it’s important to make sure you’re leveraging your company’s biggest asset - time.
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However, it isn’t simply outsourcing the data entry process that gives an enterprise a competitive advantage. Sure, that’s a start, but the outsourced process needs to be accompanied by an understanding and ability to make the most of productivity insights linked to the processing of data, to maximize overall performance. 

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For example, comparing remote vs in-house performance can be a valuable asset for understanding productivity trends for different work models. 
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Data Processing Efficiency Via Accountability

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The value of data lies in its quality. Simply put, if there are inefficiencies in the way it is mined, analyzed, and interpreted, its value diminishes.

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This is where the helping hand of technology comes in.

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Data entry monitoring software gives organizations a tangible means of baking accountability into their outsourced data processing. 

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Remote work monitoring companies like Insightful offer data entry monitoring software that analyzes exactly how agents use company time, allowing enterprises to highlight top performers and get a more intricate view of how their high-level data entry processes are capable of being executed. 
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When you understand productivity trends and website or app usage, you can build a clear picture of performance across your teams.
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With the data-rich reports you create, you can easily identify bottlenecks and productivity-slowing activities which can help you formulate a more effective approach to data mining.

The Feedback Loop Flywheel

“I think it’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better.” 

-Elon Musk, Tesla CEO

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The power of productivity insights lies in their ability to close the feedback loop. User activity monitoring weeds out costly inefficiencies and allows company leaders to make more strategic decisions with their resources. 
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Take app monitoring as an example.
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Let’s say you notice that the data entry clerks on your books or at the BPO agency are spending several hours a day using a communication app like Slack. The obvious assumption would be to assume that this communication is essential for their work. 
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Yet if you dig deeper and probe into this assumption, you might uncover the truth that the app is slowing down their productivity by taking them away from their core responsibilities.
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The solution?
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Raise the issue with your employees and see if there’s a workaround that allows them to work uninterrupted while still communicating important information when necessary.
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Analyzing feedback loops leads to a faster implementation of processes, and, ultimately, a better-executed product. In the case of data entry, it’s incredibly straightforward to analyze how efficient an individual virtual assistant or BPO agency is at whatever activity you send their way.

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As businesses expand in the digital ocean, it’s important to be mindful of how your time and budget are being spent. An entirely virtual business poses some unique challenges, and without the proper means of analyzing performance, resources can quickly slip through the cracks.

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Ask the Right Questions to Find the Right Data Entry Provider

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Don’t be afraid of applying pressure and putting your potential data entry BPO on the hot seat. 

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Here are a few good questions to ask:

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1. Why would they be the right fit for you? How will they manage your projects? What software do they use? Can you communicate easily in different time zones? Is there a language barrier? These are all great questions when vetting out your possible team.
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2. Ask if you can see examples of previous work, especially those specifically related to your company’s projects. If their portfolio mirrors your current projects, they’re likely a better fit than not.
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3. How do they handle the security of your data? One of the most significant considerations when seeking out someone to handle your data processes is how they handle the security of your data. 

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It’s also important to consider emergency protocols. Specifically, what disaster data recovery and backup processes does the provider offer?

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Without a robust disaster recovery plan, your data could be at risk in the face of external threats. Discuss strategies with the provider to make sure your data won’t be compromised in the worst-case scenario.

Ensure Data Security and Compliance

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If you’re considering outsourcing your data entry or data scraping, it’s worth asking yourself this: what makes your data set more valuable than someone else’s?

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Simply put, because it’s yours. 

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Often, data is the core competitive advantage of a business. The data you collect can be extremely valuable, and it should be protected as such. 

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Further, if the data is confidential and you may be exposed to legal risks if it is leaked, security simply must be a priority, not an afterthought.

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If you’re dealing with highly sensitive data, make sure you get your data entry BPO provider. 

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To prevent data breaches, companies must implement multiple strategies to ensure security standards. Encryptions are particularly critical when protecting the identity of your business. Data must be stored on a cloud drive with encrypted security, or securely on premise on your secured network.

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For example, Insightful offers customers the option between a cloud-based solution using Google Cloud infrastructure, or a dedicated on-premise solution. 

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Each storage option is protected with a specific key that lets your system see and process user data while preventing rogue system administrators from taking advantage of it. 

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Measuring ROI on Outsourced Data Entry

If you’re wondering whether outsourcing data entry will be a good idea, there’s only one way to alleviate your concerns: a tangible way to measure success.

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As with core business processes, it’s essential that you use performance metrics to gauge whether or not the activity is yielding the right results. Outsourcing data entry without clear metrics for success can be a futile exercise, as you’ll have no clear way of knowing if you’re getting a high ROI.

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Here are some examples of metrics you can track to measure ROI on outsourced data entry:

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•  Saved costs
•  Increased productivity and efficiency 
•  Error rates

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There are also the intangibles; the soft skills that ensure operations run smoothly and you work well with your BPO.
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These skills can include:
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• Response times
• Initiative
• Time management

The Truth about Data Entry Outsourcing

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Working with a data entry BPO can save your in-house team from performing tedious and repetitive work, which is enough of a strategic advantage in and of itself, but there’s more. 

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Modern technology offers enterprises specialized tools to scale individual data entry processes, optimize organization-wide workflows, and derive more value from the data collected 

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But remember, offloading the data processing task alone isn’t sufficient. The results of your data outsourcing endeavors will be limited without insights that allow you to close the feedback loop between instruction and execution. 

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It’s critical to track data entry services with the proper software stack to analyze your performance and marry productivity metrics to the execution quality.

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When you do, you’ll empower your team with more valuable data that unlocks new potential across your business.

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Updated on January 4th, 2024