How to Outsource Data Entry Work

how to outsource data entry

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Data entry is one of the most repetitive yet crucial aspects of running a business.

From processing customer information to updating databases and inputting financial records, it keeps everything organized behind the scenes.

But as businesses scale, managing these tasks in-house becomes time-consuming and expensive. That’s where outsourcing comes in.

Handing off data entry to a reliable team offshore allows businesses to cut operational costs, increase efficiency, and focus more on strategic growth.

In this guide, we’ll walk you through how to successfully outsource data entry work—especially to countries like the Philippines, where talent, affordability, and English fluency intersect.

Why Companies Outsource Data Entry Services

Outsourcing data entry isn’t just about lowering costs—though that’s certainly a big advantage.

For many companies, especially startups and growing businesses, it’s about gaining access to trained professionals who can deliver high-quality results consistently and at scale.

By delegating data entry tasks, businesses can:

  • Free up internal teams for more valuable work

  • Avoid the costs of hiring, training, and maintaining an in-house team

  • Operate around the clock thanks to time zone advantages

  • Improve turnaround time on repetitive admin tasks

A study by Deloitte found that 59% of companies outsource to reduce costs, but 57% also do it to focus on core business activities. That balance of efficiency and savings is what makes outsourcing so appealing.

Identify What Type of Data Entry Tasks You Need to Outsource

Before reaching out to outsourcing providers, it’s important to define what kind of data entry services you actually need.

Data entry spans a wide range of tasks: simple copy-pasting and form filling, invoice encoding, CRM data cleanup, survey responses, eCommerce product listings, PDF to Excel conversions, transcription work, and more.

Some tasks are straightforward and require only basic training, while others—such as medical or legal data entry—may demand industry-specific knowledge.

The more clarity you have on the exact deliverables and formats required, the easier it will be to find the right provider.

You also need to evaluate volume and frequency.

Are you looking for help on a project basis, or is this an ongoing need?

The scope will influence pricing models and staffing requirements.

Choose the Right Outsourcing Partner

The outsourcing partner you choose can make or break your experience.

Ideally, you want a company with a strong track record in data entry, especially for international clients.

The Philippines, for example, is a top destination for outsourced administrative work because of its workforce’s high English proficiency, strong attention to detail, and cultural alignment with Western businesses.

Look for providers who:

  • Have verified client testimonials or case studies

  • Use secure data handling processes and tools

  • Offer flexible service models (hourly, per-project, or dedicated staff)

  • Can scale with your needs if the workload increases

Many outsourcing companies also provide a trial period or sample work.

This gives you a chance to evaluate speed, accuracy, and communication before fully committing.

Prepare SOPs and Set Clear Expectations

To ensure consistency, you’ll need to prepare Standard Operating Procedures (SOPs).

These documents serve as step-by-step instructions on how to complete each type of task.

Even the most experienced data entry specialists will benefit from clear guidance tailored to your business processes.

Well-structured SOPs help eliminate confusion, reduce errors, and speed up onboarding.

Make sure you also define turnaround times, file formats, preferred tools, and communication guidelines.

For instance, if you’re using Google Sheets, Slack, Trello, or Asana for task management, your outsourced team should be trained on those platforms.

Time invested in training early on will save countless hours later.

Ensure Data Security and Confidentiality

Outsourcing doesn’t mean compromising on data privacy.

On the contrary, professional outsourcing agencies take data protection seriously. Still, you should do your due diligence.

Ensure your provider:

  • Uses encrypted channels for file sharing

  • Has signed NDAs with employees and clients

  • Limits access to sensitive data based on role

  • Complies with international data standards like GDPR

You can also request that data be processed only through company-approved systems or cloud platforms where you retain control.

It’s common for clients to grant remote access to platforms like Salesforce, Shopify, or internal CRMs with user permissions tailored by task.

If you’re handling customer information, billing data, or healthcare records, these safeguards become even more critical.

Monitor Performance and Communicate Regularly

Outsourcing is not a set-it-and-forget-it arrangement. Regular monitoring helps maintain output quality and prevents small issues from snowballing.

Most agencies will assign you a dedicated project manager or team lead who can handle reporting and updates.

Set weekly or bi-weekly check-ins to review progress.

Use KPIs such as error rate, speed, and task completion rate to evaluate performance.

If revisions are frequent, that may signal a need for process refinement or additional training.

Clear, open communication builds long-term trust.

And the more you treat your outsourced team as a partner rather than a vendor, the better the results you’ll get.

How Much Does It Cost to Outsource Data Entry?

Pricing varies depending on complexity, volume, and turnaround time.

In the Philippines, hourly rates for basic data entry typically range from PHP 250 to PHP 600 (around $4.50 to $10 USD) per hour. Fixed pricing models are also available for projects like scanning documents, digitizing records, or cleaning up databases.

You can also hire full-time dedicated data entry specialists for as low as PHP 35,000 to PHP 60,000 per month (approximately $600 to $1,000 USD), which is a fraction of the cost compared to hiring in-house teams in Western countries.

Some companies even offer pay-per-entry models, which work well for highly structured, high-volume tasks like order processing or survey data input.

Final Thoughts

Outsourcing data entry work is a smart move for businesses that want to stay lean while maintaining operational efficiency.

By partnering with experienced offshore teams, you get reliable support for essential admin tasks—without the costs and commitments of full-time hires.

The Philippines stands out as a leading destination for data entry outsourcing, offering quality work, a skilled workforce, and cost-effective pricing.

If you’re planning to outsource for the first time, start small, communicate often, and focus on building a strong foundation for collaboration.

A great outsourcing partnership isn’t built overnight—but when done right, it’s a game-changer.

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