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In-House vs Outsourced Data Entry Services: Which is Better for Business?

Because data entry is a helpful and often necessary tool for businesses, it’s only fair to wonder whether hiring in-house or outsourced data entry professionals is the right way to go.

According to recruitment site Indeed, data entry work “involves using various processes like typing and voice recording for entering data into computers”. Specialists ensure raw data is organized and easy to understand, systematizing them through databases or formatted documents.

For many companies, data entry sounds like a monotonous and mentally demanding job. Yet the same companies may still have a difficult time deciding which option is best for them.

Luckily, we’re here to give you the pros and cons of hiring in-house and outsourced data entry clerks. If you want to find out which is better for your business, keep reading.

In-House vs Outsourced Data Entry Work: The Pros & Cons

There are several factors that may contribute to your decision of in-house hiring or outsourcing. But the following will have the most impact on your business’s long-term success.

Image credits to Canva

Work Environment

In-House Data Entry Specialists

If data entry is at the heart of your business, hiring professionals in-house may help strengthen your company’s work environment and culture. 

Having a homegrown team of data entry specialists can encourage knowledge-sharing among employees (as we’ve seen in our own employees at NarraSoft) and create a sense of belonging in the workplace if your organization’s dynamics are of a collaborative nature.

Outsourced Data Entry Specialists

Conversely, if your company’s not in the business of data entry work but needs it for support, cultivating a work environment where knowledge-sharing and collaboration in that regard may be unnecessary.

In fact, doing data entry in-house can lead to a feeling of dissatisfaction within the workplace. One of the benefits of outsourced data entry services is potentially reducing stress at work. Many data entry specialists have complained about their job being a likely source of stress.

So if you don’t know how to manage employees engaged in data entry work and it’s not a core function of your business, outsourcing is a viable option for you.


In-House Data Entry Specialists

No matter the industry, hiring in-house will always be slower in terms of scalability. 

You can have a thousand potential candidates vying for the role. But scouting and recruitment will invariably take some time before it gets you the candidate of your dreams. So if you need data entry professionals ASAP, keep in mind hiring in-house may slow things down a bit.

Outsourced Data Entry Specialists

Compared to hiring in-house specialists, outsourcing data entry services to an established outsourcing company allows you to augment your team much more quickly. 

Outsourcing companies like NarraSoft already have a talent pool waiting to help your business supercharge its operations. The number of workers you require will vary from time to time. And with outsourcing, you can scale your team accordingly.

Software & Hardware

In-House Data Entry Specialists

Every company has to invest in building its repository of resources. So when hiring in-house, your company will be responsible for purchasing and introducing new hardware and software to your team. This can include laptops or PCs and various data entry software. 

Outsourced Data Entry Specialists

But this won’t be the case when you outsource data entry specialists. One of the perks of outsourcing is gaining access to the technology you need to accomplish outsourced tasks. It’s the same with outsourcing data entry specialists. But of course, if you have a particular software application in mind, you can easily let your outsourced team know, and they’ll quickly get acquainted with your software of choice. 

Image credits to Canva


In-House Data Entry Specialists

Data entry is a repetitive, time-consuming task that can eat up your day. 

Again, this isn’t necessarily a bad thing. If data entry is the primary work of your company, then the measure of its productivity depends on the accuracy and amount of data entry work done. It’s good, and even imperative, for you to have in-house employees if this is the case. 

Outsourced Data Entry Specialists

On the other hand, if your company needs data entry work for support (i.e., it’s a non-core but still important activity), you may want to reconsider the in-house approach.

Outsourcing can increase the amount of data you document and update, all without having to manage, train, and supervise an in-house team. Plus, if you opt for offshore outsourcing companies, a recent study shows remote work can even boost productivity in the workplace. 

This study came about when a spate of organizations began proclaiming their shift to a remote work setup amid COVID-19. Major companies like Twitter have reported going on a fully remote setup because of the benefits it brings to the organization’s productivity.

Alertness & Engagement at Work

In-House Data Entry Specialists

Are your people as engaged in their work as you need them to be? 

If they’re solely focusing on the work they were hired to do, then chances are your answer is yes. And if data entry is that task, then you’ve figured out a working system for your people and company. 

A combination of focus on core tasks and a seamless data entry process fosters greater employee engagement. Your people know their role in the company and can see tangible change as a result of their work.

Outsourced Data Entry Specialists

However, if data entry creates indirect change in your business goals, or if you delegate data entry as extra tasks to your employees, you’ll end up with a fatigued workforce. 

With an outsourced data entry team, your in-house staff can focus on their work better and minimize errors in the process. Plus, when you outsource data entry services, you gain people who are specialists in this field. This also results in minimal errors in data entry output like databases, a top priority when you’re dealing with data.

In Summary

The pros and cons of having an in-house vs outsourced data entry team mainly depend on your company’s core activity. Often, it’s wise to hire in-house if data entry is the focus of your business. However, if you need it merely for support, outsourcing is more advantageous for your company in terms of productivity, cost, and growth.

Is organizing data instrumental to your business but not its core competency? Then why not outsource data entry services to NarraSoft.

With over a decade of experience in outsourcing, we can give you your dream data entry team much faster than if you recruit them on your own. Send us a message on our chat box or contact form. Or email us at sales@narrasoft.com for any inquiries and a free consultation.