The Risks and Benefits of Outsourcing Product Data Entry

Outsourcing has been touted as one of the most beneficial solutions for businesses seeking to ensure they have access to a qualified pool of skilled professionals, but at the same time avoiding the pitfalls and problems that stem from in-house hiring. The truth is that outsourcing product data entry can be a highly advantageous decision, but it’s not without its risks. What are the pros and cons to the situation? What risks do you run, and do the benefits outweigh those risks? Here’s a closer look.

The Risks

We’ll begin by looking at the risks inherent with product data entry. While there are fewer risks, these factors should be known and understood before going into the situation.

• Loss of Control ”“ One potential risk is a loss of control over your product data entry project. You can mitigate this risk by hiring virtual employees that work for your company, but aren’t employed by your company.
• Communication Pitfalls ”“ Many outsourcing companies are located overseas in China, India or the Philippines. Often, there’s a language barrier that must be overcome if the relationship is to be successful. You can offset that risk by ensuring the company you work with has professional English speakers to handle your relationship.
• Security of Data ”“ Your product data entry project should be completely secure, but what safeguards does the outsourcing company have in place? This can be mitigated by thoroughly vetting any company you consider.

The Benefits

Now, let’s get to the benefits of outsourcing your product data entry. You’ll find there are far more benefits than drawbacks here as well.

• Better Focus on Core Competencies ”“ Product data entry is important, but the process isn’t part of your core competencies. By working with a quality outsource data entry provider, you ensure that you’re able to focus on your core competencies while the data entry project continues.
• Lower Costs ”“ One of the most touted and most important benefits of outsourcing is the ability to reduce your operational costs. You save not only on the benefits and salary that would have been spent on in-house employees, but also on management and in many other ways.
• Greater Accuracy ”“ Accuracy is vital in data entry. The quality of the data input is paramount. Ensuring the highest accuracy is difficult with in-house employees. There are simply too many points of breakdown in the system. With an outsourced solution, you improve your accuracy by a considerable extent.
• Greater Flexibility ”“ Today’s businesses must be agile and flexible enough to handle the vagaries of the economy and market trends. By working with an outsource data entry provider, you gain greater flexibility in myriad ways.

As you can see, the benefits of outsourcing your project data entry needs outweigh the risks. In addition, all risks can be mitigated or completely removed through research and partnering with the right company. By outsourcing your project, you’re able to focus on your core competencies, grow your business and ensure that you have skilled professionals where you need them.

– Data Czar @ DEO