Outsource data entry services can help cut costs and reduce workload but only if you avoid the common traps that derail results. Rushed decisions, vague instructions, and the wrong vendor can create more problems than they solve.
This post breaks down what goes wrong with data entry outsourcing and how to avoid it, using clear steps and examples that apply no matter your industry or team size.
Choosing the Wrong Outsourcing Partner
It all begins with finding the right vendor partner. Many teams rush this and choose based on price alone. That usually backfires.
Price Isn’t Everything
Low rates might seem attractive, but they often come with more errors, missed deadlines, weak security, and poor communication. Instead of focusing just on price, ask what’s included. Understand their approach to quality and who’s handling the execution.
Ask Better Questions
Even a short screening helps. Ask things like:
● How do you train your team?
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● What tools do you use for data checks?
● How do you fix mistakes?
● Can we test with a small project?
You’re not just hiring help; you’re adding to your workflow. Treat it seriously.
Think About Long-Term Fit
Choose a data entry outsourcing vendor who replies quickly, adapts to your tools, and understands your type of work. Avoid vendors who rush you, overpromise, or give unclear answers.
Poorly Defined Scope and Expectations
Many problems with data entry outsource start with unclear instructions. When you’re unclear on goals, the vendor can’t hit the mark.
Vague Tasks Create Bad Results
General requests like “clean up this list” or “enter this data” leave too much room for guesswork. Clear instructions should include:
● Exact task steps
● File formats and tools to use
● Examples of correct output
● What to flag as an error
Even a short checklist or sample file can save hours later.
Set Metrics Early
If you don’t measure quality, you won’t catch problems until it’s too late. A few ways to track results:
● Accuracy rate (aim for 98–99%)
● Turnaround time
● Number of corrections or rework
● Communication response time
Set these expectations early. Review them regularly.
Keep Communication Simple
Use plain language. Avoid long email chains or unclear file names. A shared folder, a task tracker, and short weekly updates can keep things on track without wasting time. Teams that also outsource adjacent functions, such as helpdesk outsourcing, often develop streamlined communication habits that benefit data entry workflows too.
Ignoring Data Security and Compliance
Outsourcing often involves sensitive data. Think customer info, transactions, internal records. If the vendor mishandles it, you’re the one responsible.
Don’t Assume They Have Security Covered
Ask exactly what steps they take to secure your information:
● Do they use encrypted file transfers?
● Where is the data stored?
● Who can see the data?
● What happens if it gets compromised?
A non-disclosure agreement (NDA) helps, but it’s not enough on its own.
Check for Legal and Compliance Risks
If your data includes personal or financial information, you might need to follow local or international laws like GDPR or HIPAA. Make sure your vendor knows the rules that apply to your industry, has experience handling similar types of data, and can provide proof of compliance or audits if needed. If you’re unsure, talk to your legal team before sharing any files. Checking early can prevent major problems down the line.
Overlooking Time Zones and Communication Gaps
Time zone differences can help or hurt, depending on how you plan. If you ignore them, even simple tasks can slow down or go off track.
Misaligned Hours Cause Delays
If your vendor is working while your team is offline, and there’s no overlap, problems take longer to fix. To avoid this:
● Schedule at least 1–2 hours of overlap per day
● Use shared tools with comments or status updates
● Set clear deadlines with your time zone marked
Even one live check-in per week helps move things forward.
Don’t Let the Silence Build
Long gaps between updates can cause errors to build up, especially during the first few weeks. Good habits include quick daily check-ins for active projects, end-of-day status reports, and using simple task boards like Trello or Asana to track progress. You don’t need constant contact, but regular and predictable communication helps keep everyone on the same page.
No Pilot Project or Trial Phase
Jumping into a full contract without testing the vendor first is a common mistake. A short trial helps you catch problems early before they affect real data.
Always Start Small
Begin with a pilot project. This can be:
● A sample of 100–500 rows of data
● A small task from a larger project
● A test using real formats and tools
It shows how the vendor handles quality, speed, and feedback.
What to Watch During the Trial
Use the pilot to check:
● Accuracy of the results
● How they handle unclear inputs
● Response time to questions or changes
● Willingness to adjust their process
Don’t just look at the output; watch how they communicate. That tells you what working with them long-term will be like. A trial may take a few extra days upfront, but it can save you weeks of cleanup later.
Lack of Internal Ownership
Outsourcing doesn’t mean handing everything off and walking away. Without someone on your team managing the process, tasks slip through the cracks.
Don’t “Set and Forget”
Vendors still need guidance, especially at the start. Common issues when there’s no internal owner:
● Missed details
● Delayed feedback
● Tasks falling out of sync with business needs
Assign one person as the point of contact. They don’t need to micromanage.. But they should review work, answer questions, and handle changes.
Support Matters More Than You Think
Even experienced vendors need context. Share:
● Guidelines and rules for tricky cases
● Samples of correct vs. incorrect work
● Business rules (like naming conventions or timeframes)
Expecting the vendor to just “figure it out” often leads to confusion and rework.
Failing to Build a Long-Term Relationship
Treating data entry as a one-off job may seem efficient, but switching vendors often creates new problems every time.
Stop Starting from Scratch
When you hire a new vendor for each task, you lose:
● Context they’ve learned from past work
● Efficiency from knowing your preferences
● Trust built through consistent delivery
A stable relationship improves speed and accuracy over time. You review results instead of teaching the process.
Build a Simple System for Ongoing Work
You don’t need a big contract. But do:
● Keep good vendors on call
● Store training materials and task guides
● Document past issues so they’re not repeated
This way, the vendor becomes more reliable and your process becomes smoother with every project.
Conclusion
Most problems with data entry outsourcing come down to poor planning, unclear communication, or choosing the wrong partner. These are avoidable.
Start small. Be clear. Stay involved. When you treat your vendor like part of your team, not just a one-time fix, you get better results, fewer errors, and real long-term value.
