Most companies collect more information than they can keep up with. Data entry is how that information becomes usable. Someone types it in, checks it, and keeps it current. The work is routine, and it still takes time to get right.
When people think of data entry, they picture the basics. Someone moves records from paper files into a spreadsheet, or compiles the results of a survey.
The work gets more specialized than that. Retail, medical, financial, and insurance companies need people who understand their records well enough to enter them correctly. Related jobs like data conversion, transcription, and database upkeep fall under the same heading.
This article covers how data entry outsourcing works, which tasks you can hand off, and what to check before you pick a provider.
Key takeaways
Data entry is routine work that still has to be accurate. That combination is why many companies hand it off instead of squeezing it in between other tasks.
Outsourcing it means an agency, a virtual assistant, or a freelancer enters and maintains your records while your own team stays on the work only they can do.
The tasks you can hand off go past typing. They include file conversion, product listings, invoice records, data cleanup, transcription, and database upkeep.
What is Data Entry Outsourcing?
Data entry is the work of putting information into digital format. Most of the time that means typing records from a non-digital source into a computer. It can also mean pulling information from several places into one document or database.
Outsourcing it means paying someone outside your company to do that work. That could be a services agency, a virtual assistant, or a freelancer. Outsourced data entry usually covers related jobs too, like converting file formats and cleaning up records you already have.
A data entry specialist can work directly with the department that needs the records. They follow a set process, or prepare data for a specific project. Your team gets the information it needs without anyone having to stop and type it in themselves.
Types of Data Entry Outsourcing Tasks
Data entry covers any task that puts information into a digital format someone can use. That includes typing from paper documents, notes, and recordings, and pulling data out of online forms or research.
Most providers also handle more specific jobs. Here is what you can usually hand off.
| Task | What the assistant does | Where it comes up |
|---|---|---|
| Data conversion | Changes a file’s format so another program can read it, for example turning a PDF into an editable document. | Moving to new software, keeping old records readable |
| E-commerce product data | Adds and updates listings, including descriptions, prices, images, specs, and category tags. | Online stores and product catalogs |
| Invoice and billing data | Records invoices and receipts, verifies transaction amounts, and fills fields for batched invoices. | Accounts payable and receivable |
| Data cleansing and validation | Finds missing values, typos, and duplicate entries. Corrects what can be corrected and removes what cannot. | Lists imported from several sources |
| Financial data entry | Enters transactions and account records, and digitizes older paper accounts. | Bookkeeping and reporting |
| Database management | Organizes how records are stored and retrieved, and keeps access controls current. | Customer, inventory, and employee records |
| CRM data entry | Adds contacts, updates deal stages, and merges duplicate records in a CRM. | Sales and support teams |
| Audio and video transcription | Types out recordings and tags each file with speaker, date, and topic. | Interviews, sales calls, meetings |
Data Conversion
Data conversion means changing the format or file type of a set of data so another program can open and edit it. A PDF can be made usable by a word processor, or a video can be moved from one format to another.
Converting data lets you use it somewhere new. Pulling records out of one program and into another is often what makes it possible to look at customer behavior or track a trend over time. It also keeps older records readable as software changes.
The task itself is simple. The risk is losing or corrupting data partway through, so it helps to have someone who has done it before running the conversion.
E-commerce Product Data Entry
Shoppers compare listings before they buy, so incomplete product pages cost sales.
A data entry specialist can add and maintain product information for your storefront or catalog. That covers descriptions, prices, images, and specifications, plus the tags and categories that decide where a product shows up in search and filters.
Invoice and Billing Data Entry
You can hand off tracking and recording invoices, receipts, and other billing documents. An assistant enters and verifies transaction data, or fills in fields for invoices you send in batches.
They can also check the output of optical character recognition software after scanning paper invoices, since OCR tends to misread handwriting and low-quality scans.
Data Cleansing and Validation
Data cleansing means going through a database you already have and fixing or removing entries you cannot use.
You tell the specialist which fields you need filled in, and they work through the dataset making sure every record has them. Records missing something you cannot look up get removed.
Cleansing also catches more general problems: blank values, entries in the wrong column, duplicate records, and typos. Where the correct value can be found, they fix it. Where it cannot, they flag or drop the record.
Financial Data Entry
You can outsource data entry to keep financial records current, or to move existing records into a standard format. Paper accounts can be digitized so you can search them, and older digital files can be converted to a format your current software reads.
Database Management
Database management is the work of organizing, storing, and retrieving data on a computer while keeping it secure. It covers designing how records are structured, setting up the storage, and maintaining it afterward.
You can hand off database upkeep for customer, inventory, and employee records. Regular maintenance is what keeps a database from slowing down as it grows, and keeps access controls in line with whatever rules apply to your industry.
CRM Data Entry
Sales and customer service work depends on accurate customer records. A data entry assistant can add contacts, update deal stages, and clean up duplicates in a CRM like HubSpot or Salesforce.
A current CRM tells you which deals are actually live and which leads have gone quiet, so you can decide where to spend your reps’ time.
Audio and Video Transcription
Turning audio and video files into text is another common data entry job. Beyond full transcripts, an assistant can fill in details about each file, such as who spoke, when it was recorded, and what it covered.
Ways to Outsource Data Entry
There are a few ways to get data entry done outside your team, and they differ mostly in how much of the managing you do yourself.
| Option | How it works | Trade-off | Usually fits |
|---|---|---|---|
| Freelancer | You hire and manage one person directly, often through a marketplace, hourly or per project. | You handle screening, training, and cover when they are unavailable. | One-off projects and small volumes |
| Staffing or BPO agency | The agency assigns and manages a team of its own staff under a contract. | Contract terms and monthly minimums are typically higher. | Large, steady, predictable volumes |
| Managed assistant service | The provider sources, screens, and onboards an assistant who then works with your team directly. | You still define the process and check the output. | Ongoing work that shifts week to week |
| In-house hire | An employee does data entry, either full time or alongside other duties. | You pay salary, benefits, equipment, and overhead. | Data you are not permitted to send outside the company |
Which one fits depends on volume and how much it varies. A single migration project is a poor reason to hire an employee, and a hundred hours of listings work every week is a lot to ask of one freelancer. Virtual assistants and assistant teams sit between those two, which is why they tend to work for recurring data entry.
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Benefits of Outsourcing Data Entry
Outsourcing business processes works for companies of most sizes, and data entry is one of the easier places to start because the output is easy to check.
Cost Savings
Outsourcing usually costs less than hiring in-house. You skip the overhead of an employee, and hourly rates for contract workers are often lower than the equivalent full-time salary. Established providers also tend to already have the data entry software, so you are not buying licenses.
You can run your own numbers with the outsourcing cost calculator.
Improved Efficiency and Accuracy
Accuracy is the whole point of data entry, so having someone whose job is only that work, with time to double-check entries, gets you fewer errors. Part-time or full-time, it beats having a team member fit data entry around their other responsibilities.
Focus on Key Competencies
Handing the work to a dedicated assistant also frees your existing team. Switching between unrelated tasks costs attention, and attention is what causes typos in a spreadsheet. Your specialists stay on their specialty.
Not sure what tasks to give your virtual assistant? In this eBook, we share 150 tasks they can do for you so you can save hours a day.
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What to Consider When You Outsource Data Entry Services
Data entry is rote work, which is not a reason to be careless about who does it. Here is what to check before you choose a dedicated service provider.
Data Security and Confidentiality
Data entry means handing over company information, sometimes including customer records. Ask which encryption and access controls a provider uses, whether they meet the standards that apply to your industry, and what happens to your data if you stop working with them.
Accuracy and Quality Control
Benchmark a provider’s work against something you trust, like a sample you completed yourself. Compare the two record by record. A provider who offers a trial period makes this easier to do before you commit.
Language and Cultural Compatibility
Data entry instructions have to be understood exactly. A small misreading of a field name or a date format repeats across every row of a large dataset. You will get a sense of this in the first conversations, and a trial period confirms it.
Before a trial starts, write down the process you want followed: field names, date and number formats, what to do with a record that is missing something, and where to save the file. Most data entry errors come from an instruction that was never written down. Reviewing a provider’s work is also faster when there is a written standard to compare it against.
Get Outsourced Data Entry with Magic
Magic can place a data entry virtual assistant with you, or a remote team if the volume calls for it. They can handle entry itself along with conversion, cleansing, and validation. Assistants are based in the Philippines and Latin America and work US hours.
Part-time is 20 hours a week. Full-time is 40 hours a week and includes Magic 24/7, so requests still get picked up outside your assistant’s shift. Billing runs every four weeks, there is no long-term contract, and you can cancel anytime. You aren’t charged until you start working with your assistant. Current rates are on the pricing page.
Tell us which skills you need and we will source candidates for you to meet. After that you can customize your team: adjust schedules, add admin work or other adjacent tasks, or expand the team by sending a message.
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Hand off data entry to one assistant.
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