Top 3 threats of outsourcing data entry jobs to the offshore

September 21, 2011: As we know India is one among the best offshore market where US and UK based companies entirely depend on their work to be done. From administrative work to medical transcription, every thing is outsourced by these companies today. Out of the various jobs outsourced, data entry is one which is widely done by most of the global companies. Outsourcing data entry jobs are always risky as you are sharing the personal or any other critical documents to a third party. We have also seen issues such as the identity theft and other mishaps which happened in the recent past particularly in the data entry related outsourced jobs. It is the trust of a client which has been ruined by identity theft and data fraudulences. 

Outsourcing data entry job prevails many risk factors which has to be very well analyzed before availing the service or getting into contract with an third party vendor as it includes many functions such as processing personal information of customers or clients, handling company documents and etc. Data entry job also includes copy pasting information, transcribing medical documents and so on.

The main issue arises when a Business Process Outsourcing (BPO) unit in the offshore or near shore market tries to sub contract the works assigned to them. For instance there are many outsourcing service providers in India which again out sources the work to some one else in the name of home based data entry jobs. Now what kind of data security can be assured in such cases? 

There are three major threat factors related to outsourcing data entry jobs which should be very well understood and analyzed by a global players that are into or plans to get into a contract with any service provider in the offshore outsourcing sector.

  1. The first and foremost one is data protection
  2. A thorough study research should be made on the security features that the service provider or third party vendor can provide to you. Information should be collected on the current security system followed by the company in managing the confidential documents of the clients and also the technological assistance of the company, or else end of the day you may find the details of your personal account being used by someone else.

  3. Now another very important factor is Trade secret.

    It could be better if the company could manage the works related to documenting some information of the company which could be considered as the trade secret of the firm by themselves with the assistance of in-house employees. A company cannot simple give access to such highly confidential details to an outsourced service provider.

  4. The third factor is the issues related to provider’s inability to deliver service on time.

    It is obvious that if any service provider could not deliver the service to the client on time, then may go for sub contracting or re outsourcing the work to freelance workers or home based workers. This again is considered as a threat. 

Outsourcing industry has both advantages and disadvantages, it is up to the company to make right research and find out what is good for them and what is not.

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