How can Efficient Data Entry Outsourcing Prevent Losses as Reported by the Data Warehousing Institute Outsourcing data entry to the right vendor results in cost savings and also improves the way your company functions.
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Tasks such as data entry, data conversion and other related tasks are increasingly being outsourced. Growing companies need to handle vast volumes of data and it is difficult for them to find the resources and manpower to manage the information. A recent survey in the UK revealed that outsourcing is sought after for a number of reasons. Cost savings aren’t the only motivation behind business process outsourcing. Businesses also consider reliability, trust and communication as key considerations when choosing a service provider, according to the Grant Thornton study that surveyed over 2500 executives spanning 36 global economies. These intangible qualities are necessary for a successful relationship between the client and service provider, says the report. Factors Motivating the Outsourcing of Data Entry and other Tasks The report revealed that “trust”, “soft skills” and “reliability” were as important as the specialist capabilities of the service provider, including cost-effectiveness. Another key finding was that the technology platforms of the provider were decisive factors in outsourcing, and services once outsourced were not usually brought back in-house. In cases where they were brought back in-house, cost and service quality were the primary factors. In terms of the amount of influence exerted in the decision to continue with outsourcing, the values were assigned to the key factors are as follows: -
Communication - 88% Relationship quality - 87% Service experience - 82%
A majority of the respondents were satisfied with the quick response, saying that their outsourcing provider was able to meet their needs even within 24 hours of the request. The results of the survey reinforce things already known – when outsourcing, companies tend to look beyond just cost-effectiveness. Negative Effects of Poor Data Quality Reliability and accuracy are indeed important factors for data conversion or entry. Poor data quality adversely affects companies. According to the Data Quality and the Bottom-line report by The Data Warehousing Institute, 40% of the companies it surveyed reported suffering losses due to poor data quality. The report also quotes examples:
A telecommunication company suffered a loss of $8 million every month due to errors in data entry, which resulted in accounts being coded incorrectly, which in turn led to the bills not being sent out
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A company dealing with information services lost $500,000 each year because customers were dissatisfied with subscriber reports that were repeatedly recalled because of inaccurate data
While a major bank discovered that the inaccurate calculation of 62% of the home equity loans it offered resulted in larger principals each month, a regional bank was simply unable to calculate its profitability because of missing and inaccurate data on cost
All this indicates that lack of data quality hampers regular functioning and customer relationships and also raises operating costs significantly. While overburdened staff could cause errors in data entry, outsourcing to a reliable provider would minimize or do away with errors and the resultant issues. Outsourcing to the Right Partner Essential When you’re outsourcing, make sure you’ve selected the right partner. According to the report by The Data Warehousing Institute, US businesses suffer losses of $600 billion each year thanks to data quality problems, though many are still largely unaware of this. It also results in the degrading of customer experience and a gradual decrease of trust among the customers. It affects the organization’s ability to make the right decisions, while raising costs in terms of processes to deal with the mess caused by data inaccuracies. These studies stress the important of efficient data entry, and the right outsourcing partner can make a significant difference to the functioning of your organization.
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