A report by Grand View Research spotlights the size of the global outsourcing market. It was evaluated at $92.5 billion in 2020 and is likely to consistently scale at a compound annual growth rate (CAGR) of 9.1% between 2021 and 2028.
For sure, some more reasons are behind why small companies should hire external support for data input services. Let’s dive in to discover below:
Why Outsource Data Entry Services?
Certainly, some concrete reasons press small ventures to leverage outsourcing solutions for data recording or input. Let’s explore them below:
Fulfilling the Growing Need for Outsourced Data Entry Services
Do you know why data is considered no less than a gold mine? The underlying insights make it precious. For this reason, even small businesses want data to be digitized. This digitisation practice starts with inputting operational records to streamline and manage them effectively. The ever-growing nature of data makes it difficult to store and manage effectively. Even Deloitte has reported that 59% of businesses hire external data entry companies to reduce the burden of overwhelming operational cost. It also reveals a surprising fact that 57% of businesses drive sufficient time to focus on their core functions because of outsourcing.
Overall, the practice of delegating data input responsibilities to a professional helps small businesses to achieve their objectives while harnessing accurate data and efficiency.
Let’s consider the case of a logistics company, which receives hundreds of orders to ship every day. Manual recording of billing, order information, and inventory updates requires you to tackle hundreds of hurdles. A startup can avoid loss and attain seamless data management by aligning these tasks to a data entry specialist or outsourcing company. In parallel, it can manage the whole dropshipping and invoicing effectively, which engages more customers to incorporate with.
Leveraging Cost-Effectiveness
Running a business is all about generating profit. Without saving much, one cannot think of it. No, just think of how much you invest in onboarding and training in-house data operators and analysts. Certainly, the cost will be huge, and it excludes operational costs, which cover salaries, benefits, and infrastructure costs.
How is it if you don’t have to spend this much amount but to sign a contract with data input outsourcing companies? Certainly, you will get access to skilled professionals, but it comes at a fraction of the cost, which is way lower than investing in in-house teams.
Enhanced Accuracy and Efficiency
Just give a thought to how big the loss could be if the data-powered decision proves wrong. This could be massive. So, a small error in billing, inventory, or transactional data can force you to pay out thousands of dollars. This is where a skilled data specialist stays ahead. Outsourcing companies employ multiple data specialists who continue to upgrade themselves. Simply put, they know how crucial it is to integrate advanced tools and technologies for fast processing, accuracy, and saving money.
For example, a small healthcare clinic struggles to manage medical billing records effectively. Because of this gap, patients suffer from delayed insurance claims. To some extent, patients lose their trust, which is actually a massive loss for the clinic. By outsourcing, this small clinic can digitise and process thousands of entries with a 99.9% accuracy rate. Above this, the processing time can be reduced by up to 40%. The fast process will certainly attract more patients to get treatment from that clinic.
Access to Advanced Technology and Expertise
Many small ventures fail to invest in the latest technologies for managing data effectively. For example, billing and transactional entries require digitised entries from hardcopies. This conversion and data management cannot be imagined within days unless the company harnesses optical character recognition (OCR) tools, artificial intelligence (AI), and automation tools. These are way faster than our imagination when it comes to processing data accurately. To confirm it, a survey by Deloitte found that 70% of businesses hire external experts to gain access to specialised skills and expertise.
For example, a small corporate society uses manual billing methods for transactions. If it outsources the task to a third-party specialist that uses AI-powered tools to automatically recognise and extract billing details for its account management, its turnaround time may come down by up to 50%.
Scalability and Flexibility
Small ventures often lack a steady flow of work. This fluctuation does not allow them to hire full-time in-house data operators. But this absence of an operational team often leads to losing crucial business opportunities, especially during peak seasons. Sometimes, old partnerships break because of this reason.
An outsourcing partner eliminates this need for temporary hires. Nor do they have to invest in additional infrastructural sources. Overall, small companies attain flexibility to scale up or down their data-based requirements.
Consider the case of a small online retailer who experienced a sudden surge in orders during the Black Friday Sale. The outsourcing support empowered him to handle backend data-based activities, which scheduled timely deliveries. And this practice did not burden him with the extra cost of hiring teams, training, and then operating in the back office.
Concentrate on Core Business Functions
With a partner in place to handle data entry flow, small ventures drive sufficient time to focus on marketing strategies, innovation, evolving new ideas, and their execution. Statista surveyed and found that 34% of businesses hire an external professional for non-core tasks so that their internal resources can focus on innovative strategies and take new initiatives.
Let’s take an example of a small marketing agency, which confronts a lot of difficulties in managing clients and analysing campaigns. As it outsourced these tasks, it derived sufficient time to devote to creativity, client engagement, and finding new opportunities.
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