Data Conversion is converting the format of data to another more appropriate format for the given need. This process may be manual format to electronic format when creating a paperless office or transferring information from one database to another that uses completely different character sets.
What is Data Conversion Outsourcing?
The world of business is quick and ever-changing, moving from format to format as the customer demands. Data conversion outsourcing is simply outsourcing or hiring another company to manage the data conversion process for you.
The company providing the data conversion is often employed by a business process outsourcer (BPO) who can create an automated process for data conversion or maintain a long-term relationship to work with the regular batches of updates.
The companies who handle data conversion outsourcing are professionals in their field and can choose the most appropriate method to deliver the end data back to the contracted company. Outsourcing companies have streamlined the process to save you time and money.
When to Outsource Data Conversion?
The choice to outsource data conversion comes down to the time and cost of the job and the ability of the current workforce.
Even a small conversion job will require in-house employees to complete the conversion work or hire additional employees with specialized skills. While the job is being performed, to ensure data accuracy, the employees’ attention will be locked into data conversion and unable to perform other tasks.
A data conversion job of any size could benefit from outsourcing, as outsourcing enables the job to be done by companies specializing in data management.
Pros of Data Conversion Outsourcing
When considering whether to outsource your data conversion needs, these are some of the advantages.
It Saves the Business Time
Businesses save time when the company’s non-core functions are outsourced so employees can focus on the jobs that earn the business income. If a process isn’t actively creating or supporting income or generating leads to create income, then that job may be taking time away from those areas.
Data management tasks are necessary for any business. Data conversion outsourcing allows the focus to be on setting a schedule for data updates and automated or perfected. Outsourcing the foundation will allow the time required to reduce.
Cuts Down on Operating Costs
Outsourcing reduces overhead costs like salaries, rent, and monthly operating expenses. The data conversion being outsourced means those costs are either included in the contract’s price as a percentage of operating expenses or taken as a typical business expense for the business contracted.
The alternative to outsourcing may be overworking employees, which can cause a decrease in productivity, paying overtime, or hiring additional employees.
Data conversion outsourcers can use specialized technology as part of their contract, eliminating the need to buy expensive programs or equipment that the business may only use infrequently.
Benefit From Experience
Data conversion is a job that requires attention to ensure accuracy, and outsourcers do this task on specialized equipment by employees with years of experience.
The job is done efficiently and quickly, yet it is completed to the industry standards with an eye to privacy and data loss prevention. Data management will appreciate the data’s cleanliness as the workflow is completed consistently and frees up supervisors for other critical tasks.
Cons of Data Conversion Outsourcing
When outsourcing any task, it is essential to note the company’s track record and work history. Data Conversion outsourcing is susceptible to some of the same issues all service providers may face.
Possible Data Loss
Although this is less likely with an experienced outsourcer, data loss or data inaccuracy can happen to any business converting data.
A lack of understanding between the company and service provider may mean that the information received is outputted into the wrong format, leading to further errors in the resulting converted data.
Communication issues can occur in any industry, and when errors occur, it costs time and money for both parties. Errors that are not immediately recognized may take time to be remedied or require another business to fix.
As outsourcing partners can be found all over the world, time zones may make communication more difficult. However, email and outsourcers who specialize in particular parts of the world can reduce this issue.
Scams and Data Security
Illegitimate businesses or those who are looking to scam rather than provide services do exist. It’s up to the contracting company to either hire an outsourcing partner with a reliable track record or hire a BPO that can do so on your behalf.
Data conversion outsourcers should follow a strict data security protocol to ensure all data is secure and protected while in their care.
Most outsourcing partners will have a variety of models available to suit companies and jobs of different sizes.
Common models include:
- The fixed price model includes contracts, where a price is set by the service provider, charged on a monthly or annual basis, and includes all the charges for working space and equipment.
- The cost-reimbursable model is a model that allows the business completing the task to set limits to their consumable expenses and then add a percentage for profit.
- A consumption-based pricing model is when a task provider charges the company based on the usage of their services within a month or year.
- Incentive-based model in addition to their contract, the company requiring the outsourcing offers a bonus or commission to increase performance.
These models can also differ with customization based on volume, the contract’s term, complexity, level of talent required, workforce required, and other variables.
How to Choose a Service Provider
Pick a service provider that has proven themselves to be reliable, accurate, good communicators, and can deliver on time. Choosing a company that has also worked with data in the same industry, especially if the relationship will be ongoing, can help minimize additional training required to specialize and reduce communication issues.
Data conversion outsourcing can benefit any business that needs to convert data from one database to another or convert manual to digital information.
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