9 Reasons Why Data Management Outsourcing Works for Your Company

As today’s companies collect more data than ever before, there is a growing need for efficient data management in corporations across industries. While some organizations have opened new departments, hired additional employees and developed capabilities for in-house data management, the cost of doing so has proved prohibitive for many small-medium sized businesses. As a result, many small business owners find themselves unable to fully leverage the data that they collect into actionable insights that can inform business decisions.

To alleviate some of the financial and managerial burden of conducting data management in-house, organizations of all sizes today are choosing to outsource data entry to companies that provide back office services. Outsourced data management is an effective solution for many companies across industries, but it’s normal for business owners and executives to be hesitant about outsourcing processes that are so important for the functioning of the business. What about data security and privacy? What do we do about visibility if another company is handling all of the work?

To help address these concerns, we’ve created this list of nine reasons why data management outsourcing works for you company. By the end, you’ll understand the kinds of benefits that companies get when they choose to outsource data entry and how you can start realizing those benefits for your organization.

Outsourced Data Management Leads to Cost Savings

Data management outsourcing commonly leads to cost reductions in the data management process of between 30 and 50%, although actual results will vary depending on where and how you currently do business. If you’re a small business operating in an expensive labor market such as California or New York, back office processes such as data management are tremendously expensive to manage locally. Firms that do so must establish a management team that takes care of data, hire data entry operators, train them, pay them a living wage, provide them with an office space, furnish the office, provide computers and other equipment and pay upkeep and maintenance costs.

With data management outsourcing, organizations can get the same results and value from their data for one monthly rate that’s cheaper than the combined cost of building an in-house department.

Take care of the pennies and the dollars will take care of themselves. How much could you be saving with an outsourced data management solution?

Take care of the pennies and the dollars will take care of themselves. How much could you be saving with an outsourced data management solution?

Data Management Outsourcing Helps Your Organization Access More Talent

Organizations of all sizes invest significant resources into attracting and retaining the best working talent that can get results in data management, however many organizations face practical limitations on who they can hire. For example, your organization might be restricted to hiring employees that live in the city where you operate – but what about the rest of the world? Isn’t there talent located elsewhere that could make a difference for your organization?

Data management outsourcing companies allow their customers to leverage a much bigger network of talent that can be mobilized to deliver value for the organization.

Effective Data Management Generates Insights and Supports Effective Decision-Making

In 2019, one of the most valuable assets that a company has is its data. The ability to collect and analyze data and metrics in a timely fashion is a critical capability that provides significant value to organizations.

Have you heard of the Pareto principle? Also known as the 80/20 rule, the Pareto principle describes the phenomenon that 80% of your results come from 20% of your efforts. In business, effective data management practices can help you develop insight into which 20% of your efforts are generating the most results, allowing your organization to focus on the most value-added tasks and allocate fewer resources to the rest.

Businesses need to make effective decisions to stay competitive, and a reliable data management outsourcing partner can provide the insights you need to stay ahead of the competition.

Efficient Data Management Outsourcing Helps You Focus on Front Office Operations

Back office processes cost money while front office operations generate money – which do you think is more important to focus on? While an efficient back office helps your business runs more profitably, the front office is the main revenue driver and relationships with your customers are far more important than ensuring that your data management team is consistently meeting performance goals.

Outsourcing enables organizations across a variety of disciplines to outsource and automate results from their repetitive data entry processes and focus on more value-added activities in the front office.

Outsourcing Companies Can Be Reliable Growth Partners

Many business process outsourcing companies provide a variety of services, with data management services and outsourced data entry comprising just a part of their capabilities. This is good news for your business: a data management partner with versatile capabilities is ready to grow with you and once you’ve realized the benefits of your decision to outsource data entry, you may realize that there are additional services available that can help improve your business ROI.

Many organizations discover new opportunities to create additional revenue streams as a result of their relationship with an efficient data management service provider.

Partnering with an outsourcing company that provides flexible labor can open doors to new business opportunities, revenue streams and ways to leverage your existing resources.

Partnering with an outsourcing company that provides flexible labor can open doors to new business opportunities, revenue streams and ways to leverage your existing resources.

Outsourcing Companies can Digitize Your Existing Data

If your organization has a backlog of data that needs to be analyzed, digitized and combed for insights, it’s time you invested in outsourced data management services. Your paper records can be turned into digital records, stored securely in the cloud for your managers or executive team to review and access as needed.

Business process outsourcing companies are equipped to handle many types of data digitization projects, including document and image scanning, optical character recognition (OCR), forms processing, and data conversions across formats. Organizations of all sizes have saved millions in the past decade by contracting out the digitization of their existing records to off-shore data management outsourcing companies.

Data Management Outsourcing Firms offer Flexible Capacity

One of the great benefits of outsourcing companies is that they offer flexible capacity that can be deployed according to your needs. Imagine that each of your staff can process 140 forms per day. You have three data entry staff, so your total capacity to process forms is 420 forms per day. If you get 600 forms that day, everyone works overtime and you extra for it. If there are just 200 forms, you’re paying the same salaries but half the productivity is wasted.

Outsourcing companies offer flexible capacity, meaning that you pay for the work when you need it done and not when you don’t.

Data Management Outsourcing Can Enhance Visibility of Analytics in Your Organization

Business owners often worry that outsourcing data management will reduce visibility of data within the organization. This is especially true for firms that outsource their accounting – you want that information to be available right away. The good news is that outsourced data management frequently increases the visibility of the data. With short turnaround times, an efficient data management outsourcing firm can process forms, collate the data and digitize the results where anyone you choose can access them.

The decreased turnaround for data analytics often more than compensates for the short period of time when forms are inaccessible while being processed.

You Can Outsource Data Management While Maintaining Privacy and Security

Business owners are right to worry about data privacy and security during the outsourcing process, but it isn’t difficult to find a reliable partner that can protect your data. Many data management outsourcing firms have established Information Security Management Systems (ISMS) and protocols in compliance with ISO 27001, the leading international standard for ISMS. These organizations already have the policies and procedures in place to ensure that any confidential data they receive from you is securely stored and accessed.


For businesses of all sizes, the decision to outsource data entry or to leverage outsourced data management services represents a major opportunity to access new talent at a low cost and achieve the desired business results at a fraction of the cost. In addition, organizations can begin to better leverage the data that they own to improve business decision-making and drive overall profitability.If your organization is spending a fortune on simple back-office processes like data entry, it’s time to look at how much you could save by outsourcing those departments.

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