Outsourcing is a business strategy in which a company hires another company to perform specific tasks rather than hire employees to take care of it. This is usually done on a support function so that company personnel can concentrate exclusively on the primary business of the company.
Companies who provide outsourcing services are sometimes called “business to business” companies, as their customers are other businesses rather than individuals. From this broad definition, all companies outsource. Even if you’re a sole proprietor, you can be said to be outsourcing when you buy office supplies. After all, it would be totally inconceivable to make them yourself! You depend on the experts in the office supply industry to provide suitable materials.
One of the largest and most adaptable outsourcing services commonly utilized by all kinds of companies is data entry. In fact, the demand is great and data entry services firms are growing rapidly.
A company’s data is one of its most valuable assets. Gathering it correctly is essential to its ability to make good business decisions. Therefore, a BTB firm seeking opportunities of this sort must be very detail oriented, have a good employee training system and be prepared to create and administer a much customized project plan for your company. They could be doing many kinds of data entry work, or they may specialize in a specific type; like medical billing.
Often a company is a provider AND a purchaser of outsourcing services. A good example is a bank. Banks, of course, provide financial services to individuals and businesses and that is their primary revenue source. In order to support this income, they may outsource their payroll function to a company that specializes in that activity.
However, many banks also provide outsourcing services in the form of data entry for their business customers. One popular example is lock box payments. In this outsourcing arrangement, all of the client company’s payments on account go directly to the bank. The bank opens them, applies the cash to the appropriate client account and deposits into the client’s bank account. They do this either by direct access the to client company’s payables systems, or they could do it separately and send a daily file of all transactions to the client company for them to take into their system in batch fashion.
There are many other types of data outsourcing provided by a wide range of companies. Some companies that may provide ancillary data entry outsourcing services are medical research facilities, universities, direct marketing firms, newspapers, insurance companies and trade organizations.
Availing yourself of the benefits of data entry services can provide tremendous opportunity for your company. Those who provide the services do so very efficiently and are already set up to do it quickly and accurately. The cost factor is often lower than what the company would spend on salaries and benefits if they did the data entry themselves. Couple that with the disruptions inherent with a larger staff and you’ll find outsourcing is not only a viable alternative, but also a preferred one in many cases.
Source : http://ezinearticles.com
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