Niyamath Parveez

Of all the business activities that a firm can undertake, data entry can be one of the most time consuming but also one of the biggest draws on finite resources. It is imperative that the firm is able to utilize the skills of a staff member who has fast typing skills. However, it does not matter if the person is extremely quick at typing the data, they need to be correct as well. If data is incorrect or can’t be relied upon, it is useless and this is why it is a huge drain on resources. Traditionally, many firms have turned to temping agencies to supply them with staff members who have a known pedigree and track record in data entry but even this method has been usurped by outsourcing capabilities. Yes, if data inputting is becoming a drain on your firm, it may be time to consider the benefits that outsourcing can bring to enable you to gain the benefits.

Outsourcing has become an extremely popular method for a business to reduce its labor costs without compromising its quality levels.

Being able to offer up business contracts for the data inputting work, usually to an offshore supplier, will see the firm receive the work for a much reduced cost. However, as already pointed out, low cost is not necessarily the most important thing. Using this method should enable the firm to work with a supplier they can rely on. This guaranteed quality brings peace of mind to a supplier and is a major reason why the work would be outsourced. The outsourcing firm may decide that they do not wish to send the work to a foreign country but there are still plenty of great opportunities to find an outsourcing supplier within your own country borders. This may result in a slightly higher cost but it may prevent any cultural differences occurring.

There are so many different methods of outsourcing that is inevitable that each firm will experience a need to use these services. For instance, payroll and HR systems may require a lot of data entry, perhaps relating to time-keeping, and this could be enhanced by utilizing a data-entry specialist. When it comes to employees, there is nothing more important than their wages so it makes perfect sense for a firm to keep their employees happy. Outsourcing this work may be invaluable if it guarantees that no hitches or slip-ups occur in the payroll process.

It is also very important for a firm to ensure that their customers are happy and nothing infuriates them more than having incorrect data stored about them. It can be very easy to make mistakes for non experienced data entry operators and this can lead to problems for any company. Therefore, utilizing the services of an outsourcing data entry operator should give a better chance of providing correct and up to date data. There is no such thing as guaranteed success when it comes to inputting but it is more likely that an outsourced data inputting professional will be successful, which brings its own benefits.

Advice for Outsourcing Key Roles - Guest Blog Post by Ellen Wood, CEO of vcfo

The below originally ran on the Austin Startup Blog on Friday, February 20, 2009. Ellen Wood is the CEO of vcfo (the company I work for as director of business development)

Today’s guest blogger is Ellen Wood who is the co-founder and CEO of Austin based vcfo. The firm specializes in operational finance and accounting, HR Solutions and recruiting services for companies of all sizes. She can be reached at 512-345-9441.

The outsourcing of key roles inside companies of all sizes is becoming more common. Historically companies have looked to outside experts for highly specialized assistance in areas such as audit, tax, and legal assistance. In more recent years functions such as marketing, HR, operational finance and accounting, IT and recruiting have become outsourced resources as well.

For startups, tapping an outsourced resource can be an ideal solution. The company can obtain the desired level of experienced professional advice at a fraction of the cost of making a long-term hiring commitment that comes with adding headcount before the business has grown to the right size.

There are several things to consider when deciding to outsource any key business function for your company:

• Reputation Of The Resource. Check references both formally and informally. When you can, go beyond the references they provide and inquire within the community and your network to see what kind of feedback you get.
• Validate expertise and specific experience. Make sure that the consultant has the experience you are seeking. There is a significant difference between an individual who is between jobs and a firm with experienced resources across multiple areas of expertise. Individuals are great resources and may become a long term hire – just be sure if that is the option you are considering that they individually have the experience that you need in your situation. Avoid the “brother-n-law” or “best-friend” option to fill key roles on part time or outsourced basis unless they really do have the expertise that you need.
• Be wary of overly discounted rates. You are looking for expertise for the right amount of time to get the job done, not to become ongoing billable hours indefinitely or inefficiently.
• The Network Matters. As an early stage company it is particularly important to think about the value of the network other resources you engage with can introduce you to. You are building your team right now both internally and externally.
• Transparency. You should be able to learn from your consultants. Look to them to educate you as to their particular areas of expertise. You need consultants who see themselves as your partner and put your interests in first place in the relationship.

Utilizing experienced recourses at key growth points can prevent your startup from making common mistakes along the path to success. An optimal outsourced provider will see themselves as your partner in achieving your goals.