Tag Archives: Data Entry Company

An outsourcing company is as good as its worst worker

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Do you run an outsourcing company in Asia somewhere?

I bet you have an interesting mix of workers, right?

Some are geniuses, but others might be not so bright?

Imagine that you run a data entry company. Let’s say that I hire your company to do a task.

Let’s say that employee #1 handles my first request and he is okay. Let’s say I hire your BPO company to do another task and this time get employee #2. Great! But, on the 3rd try, I get employee #3 who is a liar and a cheat, not to mention lazy and incompetent. Let’s say that he bills me for double the work he did, and that his work was still not correct. Hmmm. In such a case, that one employee jeopardizes the reputation of the entire BPO company, and could lose the boss a client. Gulp?

So, we blame the worker for being dishonest and lazy, right? No! It is the boss’s fault for hiring a nitwit. After all, the nitwit is not in charge of the BPO company. They didn’t hire themselves. And, even if they did, it is not their fault for being a nitwit because after all, they are just a nitwit, right? I blame the boss. If I find out that a boss has a single less than standard worker, I would be very hesitant to do anything with that company.

Being realistic, I realize that most companies do hire a mix of empoyees, and most bosses just don’t understand the harm that their workers do to their company reputation. I HAND PICK workers at companies who I do business with. If the boss is stubborn and won’t let me, then they get fired just like that. I am smart enough to know that a bad employee can make my life miserable as a client.

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Outsourcing Data Entry

Categories: Outsourcing Articles | Tagged , , , , | Leave a comment

Outsourcing Data Entry
There are various issues involved in outsourcing data entry. Safety of information, boring work conditions, and the ability to hire specialized staff.

By outsourcing data entry and data storage, you are opening yourself up to new opportunities and risks. What if the data entry company compromises you data and sells it (oh my god!). Or, what if your data is guarded with the best technology available to human kind with your new outsourcing company, but your data is not so secure at home with the mother company (hmmm). These are interesting points to consider. Any sensitive information has to be treated with the utmost of care. Servers need backups, and backups need customer service that is responsive, otherwise what good is it? Companies might seem good at first, and then a year later you might have a problem and it might take days to get a half-witted response from them about your critical data!

The main point is to pursue the issue of security of outsourcing data entry with a positive viewpoint: i.e. how can I put outsourcing on the table as an option to consider as a potentially more secure and better way to store and process data? If you are considering a particular company, its wise to ask as many questions about their security measures as possible and interview various employees to double check whether the information is really policy, or just a nice sounding story.

Data Entry jobs can be boring. I personally can only do two hours of data entry per day without wanting to take a three week vacation. If you have in-house workers do this, you have to deal with their boredom, attrition, perhaps even carelessness. By outsourcing data entry jobs, this problem gets transfered to a foreign country, far away. For all you know, they think its fascinating doing data entry and they can’t wait to go to work. Or maybe the work is boring, but their co-workers are fun, plus the samosas and chai served three times daily make the day pleasant. Work conditions are very different on the other side of the ocean.

Its quite a job double checking everyone’s work, making sure they have a low rate of errors. In America, that type of work can be stressful. But, in India, there are many who like keeping tabs on others. Its part of the national culture in many ways. The job you hate might be a dream come true for someone else.

Data Entry jobs might have high attrition rates. But, if someone lives in another country where this is their only means to make a decent living, they will be less inclined to quit on a whim. The job market in India changes so much, one year people will cut their left arm for a job, and a few years later, they will go job surfing and change jobs several times per year at great expense to the employer.

The Manila Bulletin stated on Aug 29th, 2010, that the attrition rate for data entry operations in the Philippines was only 14% which was lower than other industries. Attrition for data entry jobs might be high in America and India, but not in the Philippines.

Specialized Staff
A company that specializes in outsourcing data entry jobs can hire very specialized staff that a company who is not specialized in data entry would not be able to hire full time. Its a trend these days to focus on core competencies, and outsource the rest to other companies in your country, or in other countries. A company that specializes will also have the knowledge of how to hire the best staff since they know their business intimately, and less specialized companies wouldn’t be as sharp.

Pools of experts.
Sophisticated data entry companies will have a pool of experts who have an in depth business lexicon and technical know-how so that the company can easily deal with even the most challenging assignments. A company who doesn’t have the right mix of skilled employees, will stumble when faced with a similar data entry project.

Back logs, slack and availability in your labor force’s schedule

Categories: Management | Tagged , , , , | Leave a comment

Most companies in America have no available labor. How can they possibly accommodate new clients if they refuse to do overtime and have no available labor? The answer is that they sometimes take on new clients, but lose them to offshore outsourcers soon after. And once you ruin your reputation with a particular client, they will never come back to you. It is better to tell them you are booked up and not accepting clients at the moment.

Running a data entry company or software company is not easy. You have a certain quantity of workers. You have jobs coming in at unpredictable times. It makes sense to have a back-log of work that is going to be done in the future. That way you can deal better with the short term fluctuations in demand.

But, you have several choices if you want to have some availability in your schedule to accommodate new clients. You can either have one worker on the bench who is not doing anything other than waiting and being available. Or, you can have back-logged work and postpone the back-logged work to make time for your new client. If you have different pricing models for work that needs to be done immediately verses in the next few weeks, verses in the next few months, you can gain tremendous flexibility for attracting new clients and grow your company. Most companies are not thoughtful enough to come up with strategies for having availability — and this is exactly why they don’t grow.

Another mistake American companies make is that they don’t raise their rates when they have no availability. If a hotel has only a few rooms left, they raise their rates, so that they can have an equilibrium of availability. The goal is usually to maintain an average availability of 20-30%. That way if demand fluctuates upwards you will still probably have a few rooms left, and if demand is unpredictably low, you might still be half full. Hotels have mastered the balancing act of supply and demand, but I have NEVER seen a software company or data entry company show any signs if even having thought about this principal.

Overtime is yet another way to guarantee availability. Yes, it costs more to pay for overtime, but that way you can keep your newly acquired clients. You might lose a few hundred dollars, but you keep the clients which could be worth hundreds of thousands of dollars. Unfortunately, this concept is too long term for Americans to understand which is why their business is quickly going to India!

Remember: no availability = no growth
Find a way to always have potential for availability in your schedule.

Also remember: America’s stupidity is India’s blessing. India will eventually take many of the clients that got burned by negligent American companies!

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