Outsourced Data Processing: Key Business Strategies from Startup to Enterprise
Data and document processing are necessary tasks, but they are labor-intensive, repetitive, and take precious time away from core activities. Data processing has been outsourced for years because companies understand that they can make better use of their time and resources. Companies ranging from startups to big enterprises face the same issue of how to make data work for them. But it can be a daunting proposition for organizations with limited resources to build in-house data processing hubs.
In this age of big data, where information accumulates so fast that traditional processing methods have difficulty keeping up, efficient data management, organization, and security are even more important. Data management in big companies is a complex task that requires keen process oversight and sophisticated information systems. While corporations are in a good position to keep data processing in-house, many are choosing to outsource a significant portion of data management to third parties simply because outsourcers have the latest technology and tools to handle the volume of information.
Small and medium-sized businesses may not have massive data yet, but processing existing information still eats up time and distracts managers from what they really should be doing: improving their product, the customer experience, and the bottom line.
Data Processing Outsourcing Market and Trends
The data processing industry is growing at a fast clip post-recession due to renewed IT spending and increased outsourcing activity driven by cost-saving measures within organizations. IbisWorld reports that the market is expected to expand at a compound annual growth rate of 6.6 percent and generate $118.1 billion in revenues by 2015. Mergers and acquisitions across industries will further boost growth, as outsourcing is a more affordable and convenient method of managing this higher level of complexity than performing data processing in-house (Data Processing & Hosting Services in the US, IbisWorld 2015).
Third platform technologies, particularly cloud computing and mobility, are adding to the growth of the data processing outsourcing industry as companies move toward digital transformation and web-based companies looking to innovate and leverage domain expertise outsource their IT infrastructure needs. Data processing is increasingly seen as a strategic tool, and vendors are responding to market demand by offering end-to- end services. Discrete services like data entry, document scanning and printing still exist, but more companies are using services at the higher end of the value chain to drive long-term value and improve workflows (Forbes Insight and Infosys).
For example, a U.S.-based gas and electric company leveraged the expertise of data processing provider Xerox to reduce costs, improve customer satisfaction, and improve process efficiency. Xerox handled printing services, printing management and client communications, helping the company save about $297,000 on printing and mailing costs and reduce their paper output by 7 million sheets every year. Xerox transformed the company’s billing system and implemented a more efficient and affordable process. The provider also simplified information and reduced the number of pages in billing statements, which in turn trimmed print and mailing costs dramatically. This also led to faster turnaround times, ensuring that regulatory requirements could be met.
What to Outsource
Data processing services include data entry, raw data capture, document digitization, data conversion and analysis, electronic data processing, forms and survey processing, litigation services and credit card processing. Data processing providers cover any business size and virtually all industries, from retail to banking and finance. Third parties also provide large-volume data processing and complex statistical analysis for big companies. Companies looking to cut costs can examine their data processing workflow and consult with outsourcing providers about how they can streamline their processes and put their data to work for them.
Benefits of Outsourced Data Processing
Outsourced data processing is both a money saving and strategic business tool. Companies that outsource data processing can improve productivity, labor efficiency and accuracy. Other advantages of outsourced data processing include:
Better data management. Third party providers have the technology and tools to manage and organize data more effectively so staff can access what they need more quickly and efficiently.
Improved data security. Some companies are reluctant to outsource data processing due to security concerns, but third parties now have sophisticated security measures in place to ensure that data is safe. It’s in the best interest of outsourcers to keep private data private and information safe from hackers. But it is important to partner with an experienced provider with a proven track record of data security.
Reduced costs. Companies can save as much as 60 percent by outsourcing data processing to an experienced third party. In fact, it’s no longer a question of outsourcing vs. not outsourcing, but outsourcing to whom. Local and near shore providers have the advantage of being closer to home, but price points tend to be higher than offshore services. For increased savings, many companies are outsourcing data processing to offshore locations such as the Philippines.
Access to domain expertise. Companies may know they have issues with efficiency in their data management processes and they may understand that they are not fully utilizing the data that they are able to collect; but they may not have the know how to make improvement to their systems. Outsourcing can not only lower labor costs, but also give companies access to best practices and the latest technologies; thereby providing a double benefit.
Outsourced Data Processing in the Philippines
The Philippines is a top destination for business process and information technology outsourcing. Startups, medium-sized businesses and big enterprises prefer the Philippines over other locations for data entry and data processing because of the country’s highly-educated and motivated workforce that can do more with less.
Sourcefit currently provides teams of experienced, highly motivated data processing professionals in a variety of fields. Staff have access to state-of- the art technology and are trained in industry best practices. Teams can work 24/7 and strict security protocols are in place to secure data throughout all stages of the process.
Please contact us to find out about Sourcefit’s custom data processing solutions.