Data Entry Outsourcing Explained

Outsourcing administrative tasks, such as data entry for CRM, is a common strategy to boost company performance. It reallocates the time that CRM users would otherwise have spent on manual data entry, and is a great way for employees to focus on core business tasks such as prospecting, selling, and attending to customer concerns.

If you are planning to outsource your data entry tasks, or you already are, or you’re simply planning to learn more about it, keep reading.

What is Data Entry Outsourcing?

Data Entry Outsourcing is the system of hiring skilled data entry professionals, or some other entity, to handle your company’s data. The people hired are commonly under an outsourcing provider or vendor which facilitates and acts as a middle man between the client and the data entry professionals. Going through a vendor is often cheaper, and more convenient than hiring people yourself.

Additionally, it’s good to note that most data entry professionals hired by vendors are people from English proficient countries outside of the United States, like India, Ukraine, and the Philippines. They are often highly trained and some of them are even required to have high typing speeds upon starting the job.

Why do companies choose to outsource data entry jobs?

Many companies outsource for various reasons. A survey by Deolitte shows us that companies are motivated to outsource due to these factors:

  • Reduced Costs (59%) – Outsourcing helps cut down costs, and increase revenue over time.
  • Focus on Core Business activities (57%) – It takes away tedious manual data entry tasks from your CRM users’ hands and allows them to focus on productive work.
  • Improved service (31%) – Data entry outsourcing is known to produce outputs with better data accuracy due to their high level of data entry service standards and training. This results in your in-house team serving your customers better.

Will your company benefit from data entry outsourcing?

Know and Assess your Business needs

Before anything, thoroughly assess the needs of your company. Know which areas of operation your company is weak at, gather statistical data, and decide whether it should be outsourced. Determine it should be outsourced either partially, or fully. Lastly, based on the company’s current standing, weigh in whether outsourcing will bring more benefits than risks, and if it is indeed the best solution.

Identify the specific services and requirements you will need from the Outsourcing Company

Narrow down the specific services that your company needs from an outsourcing company. This is where you expound on the idea of hiring a data entry service provider. Determine your requirements in terms of:

  • Budget and Costs
  • Technology
  • Turnaround Time
  • Scale and amount of tasks to be outsourced
  • Customer Support
  • Employees under the vendor
  • Privacy, Security and Compliance
  • Reputation
  • Scalability

Calculate the Return of Investment

Have an idea of how much your company can save, or earn, through outsourcing. Remember that you are outsourcing to cut on expenses, and increase efficiency, so calculating the potential ROI is essential. After assessing your company’s needs, you should already have an idea or an estimate of the costs. Also, calculate and compare how much it would cost to have your own team do the data entry tasks versus how much it would be to outsource them.


Data entry outsourcing can be a reliable course of action take if you believe your company will benefit from the extra time you buy back your employees to become from productive yielding in more sales and profit altogether.