Hiring a third party for a task is a big decision. Where there are leverages you may have some risks that must be attended to before aligning data entry tasks to a professional outside of your company. Let’s discover what these factors or things should be.
Vital Factors to Consider Before Outsourcing Data Entry
There are several things or factors that you should consider. Here are some of the key ones:
1. Data Security
The first thing you need to think about is the security of your data. After all, you are going to entrust sensitive information to a third-party vendor. So, you need to ensure that they have the necessary security measures in place to protect your data. Here is how you can ensure it:
- Physical Security: You can ask or even go through the physical security measures of the outsourcer’s facility, such as access control systems, surveillance cameras, and security personnel.
- Data Encryption: Encryption avoids disclosing sensitive details openly. So, you may ask the outsourcer if he or she uses data encryption methods, secure transmission protocols, and encryption technologies to protect data in transit and at rest.
- Access Controls: Authorisation can prevent the access of unauthorised people. You may request to ensure access controls and permissions. This includes who has access to the data, how they access it, and what procedures are in place to prevent unauthorised access.
- Background Checks: Checking the employees’ backgrounds and policies and procedures can ensure that the aligned team that has access to sensitive data has been properly vetted.
- Compliance Certifications: Certain compliance certifications, such as ISO 27001 or SOC 2, can help you determine if the outsourcer has implemented appropriate data security controls and processes.
- Data Breach Response Plan: This includes end-to-end procedures for detecting, responding to, and reporting data breaches.
2. Quality of Work
Data entry requires 99.99% accuracy, high-quality work, and consistency. You can review the past work of third-party vendors for errorless data entry by asking for references and conducting a trial project. In addition, these methods can help you to map their quality before hiring.
- Double Entry: See if the outsourcer performs double entry, where two different operators enter the same data separately. This can help to identify errors and ensure accuracy.
- Quality Control Checks: You can do this by checking for consistency, completeness, and accuracy of the data.
- Error Rate: Track the error rate of the outsourcer by monitoring the number of errors made per unit of work. This practice can help you see the erroneous patterns or issues with the quality of the data entry work.
- Sample Checking: A pilot project can guide you to hire or not. You can randomly select a sample of the data entered by the outsourcer and check it for accuracy. Check & identify any errors or inconsistencies in the data to finalise the decision.
- Feedback from End-Users: You can gather reviews from end-users who have been the clients of the outsourcer. This can help to identify any issues or errors with the data that may have been missed during the quality control checks.
3. Turnaround Time
You need to consider the time it takes for the vendor to complete the work. You should set clear expectations and deadlines to ensure that the work is completed on time.
- Define the Scope of the Project: Start with clearly defining the scope of the data entry project, which includes the type of data, the volume of data, and the level of complexity involved. This will help you to estimate how long the project will take to complete.
- Assess Your Data Entry Needs: Assess your data entry needs and determine the urgency of the project. This will help you to prioritise the project and set realistic deadlines.
- Determine the Availability of the Outsourcer: Find the availability of the outsourcer and his/her capacity to complete the work within your desired timeframe. It gives you an idea about the overall workload, work schedule, and any other commitments you may have.
- Communicate Your Expectations: You need to communicate your expectations clearly to the outsourcer. This covers the deadline for completing the work, any milestones or deliverables that need to be met, and any other specific requirements.
- Allow for Contingencies: You should allow for contingencies, such as unexpected delays, errors, or revisions. This can help to ensure that the project is completed on time and within budget.
- Monitor Progress: You need to monitor the progress of the project and ensure that the outsourcer is meeting your expectations. This includes tracking the completion of milestones, checking for accuracy and quality, and addressing any issues or concerns that arise.
4. Affordable Cost
Outsourcing data entry can be in your budget, but ensure that the cost is reasonable. You should compare prices from different vendors and ensure that you are getting a fair price. Besides, you can estimate the price this way:
- Define the Scope of the Project: The scope of the data entry project covers the type of data, the volume of data, and the level of complexity involved. This knowledge will help you to estimate the amount of time and resources required to complete the project.
- Identify the Outsourcer’s Pricing Structure: Ask for the pricing structure of the outsourcer, which may include hourly rates, project-based rates, or a combination of both. It’s also good to ask about any additional fees or charges that may apply.
- Compare Pricing from Multiple Outsourcers: Now that you have the price list, compare it with multiple outsourcers to ensure that you are getting a competitive price. Be sure to consider the quality of work, turnaround time, and any other factors that may impact the cost.
- Negotiate the Price: You can negotiate the price by asking for a discount. You may also negotiate the scope of work, or adjust the delivery schedule.
- Consider the Total Cost of Ownership: Compute the total cost of ownership when deciding the cost of data entry outsourcing. It includes not only the price of the outsourcer’s services but also any additional costs, such as software or equipment that may be required.
5. Clear Communication
Effective communication is crucial when you hire a third party for data entry services. Look into the fact that the vendor has a clear and effective communication process in place. It ensures that you are updated on the progress of the project.
- Determine the Best Communication Method: Discover the best method of communication for your project, which can be email, phone, instant messaging, or video conferencing.
- Establish Clear Lines of Communication: You need to establish clear lines of communication between yourself and the outsourcer. This may include setting up regular check-ins, establishing a communication protocol, and providing contact information.
- Define Project Expectations: Define the project expectations clearly, including the scope of work, timeline, and deliverables. This can help to ensure that everyone is on the same page and working towards the same goals.
- Provide Clear Instructions: Provide clear instructions for the data entry work, including any formatting or data entry requirements. This can ensure that the work is completed accurately and efficiently.
- Address Any Concerns or Issues: It’s good to address any concerns or issues that arise promptly to prevent delays or misunderstandings and ensure that the project stays on track.
- Provide Feedback: Feedback is significant in understanding that the work meets your expectations and can also help to improve future projects.
- Scalability: As your business grows, your data entry needs may also increase. You need to ensure that the vendor has the capacity to scale up their services to meet your changing needs.
6. Legal and Regulatory Compliance
This is necessary that the vendor complies with all relevant laws and regulations, such as data protection and privacy laws. It ensures that you are working with a reliable and trustworthy partner. Here are some steps to help you measure the legal and regulatory compliance:
- Research the Outsourcing Company: You should research the outsourcing company thoroughly to learn more about its history, reputation, and track record. You can start by reviewing its website, reading customer reviews, and checking its social media accounts.
- Check for Certifications and Accreditations: Check whether the outsourcing company has any certifications or accreditations that indicate they are compliant with legal and regulatory requirements. These may include ISO certifications, HIPAA compliance, or PCI DSS compliance.
- Verify Compliance with Relevant Laws and Regulations: Verify that the outsourcing company is compliant with all relevant laws and regulations. This may include data privacy laws, labor laws, and tax regulations.
- Review their Policies and Procedures: Review the outsourcing company’s policies and procedures to ensure that they have adequate measures in place to comply with legal and regulatory requirements. This may include policies on data security, confidentiality, and employee conduct.
- Ask for References: You should ask the outsourcing company for references from other clients who have worked with them. This can help you to learn more about their experience working with the outsourcing company and their compliance with legal and regulatory requirements.
- Conduct On-site Visits or Audits: You can conduct on-site visits or audits to verify that the outsourcing company is compliant with legal and regulatory requirements. This may include reviewing their facilities, observing their operations, and checking their documentation.
Summary
There are several things or factors that you should consider before outsourcing data entry services. Quality of work, pricing, legal and regulatory compliance, clear communication, etc. are a few things that should be attended carefully.
