Most Common Problems in Outsourcing Data Entry Services 

Outsourcing can be risky, especially when you expect high quality. Certainly, many esteemed multinational companies, including business process outsourcing entities, are exceptions. Though hiring a third party for data entry solutions is a smart decision to save money, improve efficiency, and leverage expertise with modern tools. But you cannot think it to be free from any challenges or risks.

Here, some common challenges are to be disclosed about outsourcing data entry.

Common Challenges in Outsourcing Data Entry

Multiple risks can be involved in hiring a third-party for digitising, sorting, processing, and even managing data. Let’s reveal the most common problems that many businesses face.

1. Quality Control Issues

The most significant concern with outsourcing data recording is to maintain consistency in delivering 99.99% accuracy. However, sampling would be up to the-mark. But to outsource data entry consistently to an external provider requires monitoring and accuracy checks.

For sure, some reasons are behind it, which are shared below:

Causes

• Lack of Standard Process: Data entry outsourcing companies embrace diverse methods of data input. They don’t follow a standard process, which infests data with anomalies, duplicates, and oddities.
  
• Insufficient Training: Lack of project-specific training can also be the foremost reason for inaccurate entries. Being flooded with overwhelming requirements, these companies may cater to erroneous data.

Solutions

These problems can be administered by embracing these wise ideas.

• Set clear guidelines: While signing a service-level agreement, focus on establishing comprehensive guidelines related to data entry standards.
  
• Use Technology: Validating entries if they are relevant or duplicates is necessary, which can be automatically done by investing in validation tools.
  

2. Communication Barriers

Effectively communicating what you require is crucial.

Causes

• Language Differences: This can be challenging, especially when you outsource the company located in a different time zone. The understanding won’t be developed, and hence, miscommunication will foster.
  
• Time Zone Challenges: Its language and culture might differ, and therefore, real-time communication won’t occur. This may end up in breeding misunderstandings and confusion, and the delivery will be slower.

Solutions

• Establish Clear Communication Channels: The gap in communication can be minimised by deploying project management tools and investing in communication platforms for seamless approvals and doubt clearances.
  
• Schedule Regular Meetings: Eliminate gaps and delays by hosting regular meetings using tools like Zoom. It can help in discussing progress, addressing concerns, and clarifying expectations.
  
• Cultural Training: Train the outsourcing team about your culture so that mutual understanding can be built for seamless cooperation.
  

3. Data Security and Privacy Concerns

Data is sensitive, which can illustrate intentions and hence manipulate emotions through smart online campaigns. So, it’s dangerous to leave data vulnerable in the hands of a third-party data entry company.

Causes 

• Inadequate Security Measures: Some third-party service providers may not implement or follow robust security protocols to protect sensitive records.
  
• Insufficient Compliance: Data regulations like GDPR or HIPAA are draughted to prevent data loss or its misuse.

Solutions 

• Conduct Due Diligence: To avoid any instance of vulnerability, thoroughly check what security measures and compliance your service partner follows.
  
• Implement Non-Disclosure Agreements (NDAs): You can eliminate the risk of data loss or vulnerability by signing an NDA or Non-Disclosure Agreement, which should clearly state the procedure for handling data.
  
  

4. Hidden Costs

Employing a service partner for data input services is an inexpensive alternative. But hidden charges can erode your budget over time.  

Causes 

• Additional Services: Sometimes, hidden costs are enclosed with services like additional training and quality-measuring tools. It makes the service pricier than expected. These costs may not be disclosed initially.
  
• Currency Fluctuations: Sometimes, a huge variation in exchange rates can overburden the budget of working with an international data entry service outsourcer.  

Solutions

• Transparent Pricing: Before signing an SLA, ensure that you have discussed the pricing in detail.
  
• Negotiate Contracts: Open up about the potential of additional cost during that agreement and pricing negotiation. Also, document and thoroughly audit terms before proceeding with outsourcing contract.
  

5. Integration Issues with Existing Systems

Incompatibility can be disastrous. If the outsourcing partner does not have compatible IT infrastructure and tools, you can never expect efficient and error-free data entries.

Causes

• Different Software Platforms: Let’s say the customer uses Typeform for form data entry and the vendor prefers SurveyMonkey for the same purpose. Both tools might be collecting data from surveys.
  
• Lack of Technical Knowledge: The outsourcing partner may not be technically sound in handling entries effectively on their obsolete systems.

Solutions

• Invest in Integration Tools: Verify if your service provider uses data integration tools to optimise the process of importing and exporting data from different systems.
  
• Collaborate on Technical Solutions: Collaborate with your partner to help with seamless integration of various tools for smooth and error-free data entry.