ultimate guide to data entry outsourcing

As a business, protecting and safekeeping data is important for your growth. It starts with the digitization of your documents. You need an efficient, accurate, complete, and secure database to protect and maintain your enterprise data. However, doing so while managing a business (or overburdening your in-house team with those tasks) can get very overwhelming and may reduce overall enterprise profitability. 

Outsourcing data entry is a solution to this problem.

Introduction to Data Entry Outsourcing

Data entry is the process of digitizing information. 

With the increased usage of digital technology, data entry has become an integral part of businesses. To be more precise, inputting any information recorded on documents, like bill receipts, passports, shipping receipts, etc., into computer systems is called data entry.

As this data is valuable to a business, the job requires skilled and trained experts. Hiring data professionals in-house involves investment and time. Whereas engaging an external data entry outsourcing company is a smart option for managing this job.

The following are the different types of data entry outsourcing models:

On-shore OutsourcingOff-Shore Outsourcing
If you outsource data entry services to a company located within your country, it is called on-shore Outsourcing. Such partners might work on-site or remotely. Though it is a costlier outsourcing style, it is easier to communicate or collaborate in this model.If your outsourcing partner is located in another country, the model is called offshore outsourcing. The labor costs and time-zone difference is advantageous in this model.

Types of Data Entry Outsourcing Tasks

Different types of data entry outsourcing are as follows:

  • Medical Billing Data

Healthcare organizations need various medical documents to be digitized regularly. Outsourcing this data management saves 40% to 50% of costs. It includes the following type of data entry:

  • Medical Invoices and Billing
  • Medical Transcription
  • Patient Details and Medical History
  • Medical Insurance Data
  • Insurance Data

Identity proofs and other documents are a necessary part of insurance processing. Data entry is useful to digitize claim forms of critical illness, death claims, hospitalization claims, accidental claims, general insurance claims, mortgage insurance claims, etc.

  • Handwritten Data Entry

Organizations are moving towards paperless documentation. Data entry professionals digitize handwritten notes, memos, questionnaires, work orders, vouchers, and letters.

  • PDF/ Image /MS Data Entry

Image files are converted into PDF or MS formats using data entry services.

  • Copy/Paste Data Entry

It involves selecting data from one document and pasting it on another.

  • Captioning

Images and other media need captions for better presentation. Data entry experts mainly perform this task for the media industry.

  • Data Cleansing

Data entry experts cleanse and format data for better accuracy and order. It also involves removing errors.

Also Read: How Can Data Enrichment Turbocharge Your Marketing Strategy?

Advantages of Data Entry Outsourcing

The reason for the rise of the data outsourcing industry is the benefits it offers businesses. The following are the advantages of outsourcing data entry services:

  • Focus on Core Business

Once you outsource data entry tasks, it saves a lot of time for the workforce. This time can be utilized in working on core jobs and strategizing operations. When external partners handle administrative tasks like data entry, the in-house human resource feels relieved, and it improves their focus on core competencies. 

  • Cost-Effectiveness

In-house data entry operations require hardware, infrastructure, and trained human resources. Outsourcing data entry services saves you from this investment. Many companies prefer data entry outsourcing due to its cost benefits as a capable third-party service provider has a team of experienced professionals, and they are equipped with advanced machinery and infrastructure.

  • Improved Service

Technology keeps evolving, with upgraded versions of software being introduced every year. Matching this change can be expensive for businesses, and using outdated software might give ordinary results. Professional data entry services use advanced technology that helps you provide better service without any extra costs. Advanced technology accelerates the data entry process and is more accurate.

  • Access to Experts

Hiring skilled labor and training them is tedious. Outsourcing gets you access to a team of experienced data entry experts in different data management domains. They can process your data and give high-quality results.


Data entry outsourcing is a smarter way of managing business operations. Your staff will not feel burdened by repetitive tasks and can focus on their core responsibilities. It also provides you with a quality database that can be used for respective business operations. It is also cost-effective. To remain competitive in the age of digitization, outsourcing data entry services is a must.

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