Outsourcing proves to be a blessing for many startups and existing ventures. It significantly brings a big difference in operational efficiency at a way lower cost. Deloitte conducted a survey and found that 59% of companies hire third parties to leverage reduced costs. However, 57% of these companies also opt to focus on core business functions. Certainly, entrepreneurs have sufficient time to focus on their core competencies.
Overall, outsourcing data entry adds a tonne of benefits. These ideas are mostly inspired by a structured approach. This approach defines the success of outsourcing data entry services. So, here is a comprehensive guide to successfully outsourcing data entry services.
- Assess your needs
The very first step is to discover what needs or requirements you have. Data entry is a wide concept that ranges from recording or digitising numeric or text data, accounting records, insurance claims, form filling, Amazon product listings, email data, document entry, eBay data entry, online and offline data recording, logistics data, etc.
Another type of common requirement can be related to handling and processing records from various sources, like the cloud or hard disks. Basically, data miners do it for data ingestion, mining data insights, and drawing patterns or models.
Data verification is also considered a part of data entry services. This process helps in measuring the accuracy and consistency of records. Besides, some businesses may have online data, but not in a standard digitised format. In this case, data conversion and cleansing will be required.
Overall, one must be crystal clear about which specific data entry service(s) should be selected to outsource. Also, discover the volume of data you have for inputting or processing and how frequently you require these services. This identification makes the rest of the way to outsource data entry services easier.
- Select the Right Outsourcing Partner
The second step is a real challenge because you have to find the right outsourcing partner. Research revealed that the global outsourcing market was worth USD 245.91 billion in 2021 and is likely to expand at a CAGR of 8.5% from 2022 to 2030. This means that you would have multiple capable alternatives to choose from.
You need to conduct research thoroughly and choose the most experienced and trusted partner. Overall, focusing on three things will be rewarding. The first is experience. Look out for data entry outsourcing companies that have a proven track record of managing similar data entry projects.
The next focal point is technology. Seek information about whether the shortlisted companies use advanced tools like conversion software, Zoho Forms, or likewise tools for efficient data entry. Finally, examine the reputation of the selected company. Exploring company reviews on Google and testimonials from previous clients can reveal the real reputation of the company. This is how you can shortlist the most trusted one.
For evaluating which company is the best fit for a partnership, focus on three points. The very first thing is to find out if the company transits data using encryption. This alternative protects data from hackers. Compliance is the next thing that helps you find out if the shortlisted company follows industry regulations, such as GDPR, HIPAA, etc. The third point to emphasise is access control, which must be restricted for sensitive data.
- Define service level agreements (SLAs)
Statista reported that 43% of businesses emphasise the significance of crystal clear SLAs, which help in scheduling and managing relationships with outsourcing partners.
The moral of the story is that the SLA must be comprehensive, describing all specific requirements and delivery schedules. A comprehensive SLA states the turnaround time or specific timelines for data entry tasks’ delivery. Specify the minimum accuracy rate that you expect. Typically, it is 99.99% or higher in the case of data entry.
The next point is associated with data security. Ensure that it confirms that the outsourcing company complies with security protocols and data protection regulations. And the last but crucial point is communication. Examine if the SLA mentions communication protocols; for instance, the company will provide regular updates and reports.
Once you have highlighted what, how, and when to do it, explore what the penalties and performance metrics will be if anything goes against the SLA. Specifically, agree on the acceptable percentage of errors in the processed data and penalties for exceeding the limit. Likewise, define the agreed-upon turnaround time. Eventually, define when to receive feedback from internal stakeholders on the service quality.
- Implement a transition plan
The International Association of Outsourcing Professionals (IAOP) found that 72% of companies express the vitality of a structured transition plan for outsourcing success.
The transition plan is basically required for the smooth handover of data entry tasks. It basically covers three main points. The very first point is knowledge transfer, which is associated with training sessions and documentation for the outsourcing team. With it, the team acknowledges personalised requests and challenges. The next point is related to system integration. The outsourcer ensures compatibility between his systems and the beneficiary’s existing IT infrastructure. It eliminates prospective battles in transferring data to compatible storage.
The third point is crucial as it is concerned with a pilot project. Initially, a sample is prepared, which helps identify potential risks. This practice leads to making guided decisions.
To monitor the transition plan, the outsourcing company follows a series of steps. These steps involve identifying gaps so that they can be fixed before the issue escalates. Both the outsourcer and the beneficiary company regularly communicate to discuss improvements in the process. If something seems required, the SLA is refined with the expected adjustments on the basis of initial sampling.
- Maintain ongoing communication and collaboration
A study by Deloitte revealed that 73% of businesses believe continuous and consistent communication is a critical metric for a successful outsourcing relationship.
This study points out that communication is the lifeblood of a long corporate relationship. In this direction, both partners should schedule regular meetings, either physically or remotely. This connection helps in reviewing overall performance, what challenges one faces, and how to fix them.
Additionally, the outsourcing partner provides weekly or monthly reports summarising performance metrics, challenges, and solutions. For in-depth analysis of overall data entry outsourcing projects, quarterly business reviews can help. Also, these reviews set the stage for strategic planning.
Creating this culture of regular communication is an uphill battle. You can simplify it by fostering a collaborative relationship that involves sharing goals. Encourage a culture of innovation and improvement. Acknowledge and reward the provider’s contributions to your success.
- Monitor performance and ensure compliance
According to PwC, 64% of companies rely on performance-tracking tools to manage their outsourcing relationships effectively. Considering that a major percentage of companies believe in proper management of systems, it is necessary to monitor everything. This tracking should be focused on the agreed-upon performance metrics. And the frequency of this monitoring is regular.
The SLA should also mention the tools and techniques used for performance monitoring. It involves real-time dashboards and regular audits, which also help meet compliance needs related to data security protocols.
Besides, periodic reviews should be conducted to determine the overall effectiveness of the outsourcing arrangements. These reviews should also evaluate SLAs that are still relevant. Adjust them if necessary. Identify improvements and implement changes. Eventually, it will be easy to maximise savings and measure the return on investment (ROI) from the outsourcing relationship.
Conclusion
Successfully outsourcing data entry services requires careful planning, clear communication, and ongoing management. By following these steps, businesses can leverage the expertise of outsourcing providers to enhance efficiency, reduce costs, and maintain high data quality standards. Remember, the key to a successful outsourcing relationship lies in selecting the right partner, defining clear expectations through SLAs, and fostering a collaborative and transparent working relationship.
