Why is digitalization the best alternative to outsourcing?

Why is digitalization the best alternative to outsourcing?


Outsourcing often seems to be the panacea: the best value for money. This again seems to be the best solution to improve manual and repetitive processes. While it can sometimes be beneficial, outsourcing can lead to constraints and problems that, at first glance, are not immediately obvious. Digitization is an important process that must be entrusted to a company specializing in the subject.

Klippa, a Dutch company, is a leader in the digitalization of business processes.

In this article, find out why it is important to digitize and what solution Klippa offers.

Lack of skills internally

There are many reasons why a manager might think about outsourcing certain tasks. Teams may lack certain skills, or simply, as the amount of work increases, it becomes necessary to outsource. In addition, tasks like manual data entry are time consuming and repetitive. This consumes the energy and the production force of the teams to the detriment of tasks that produce useful wealth for the company.

Outsourcing then appears to be the ideal solution to compensate for these internal gaps or hiccups. But it is a complex operation requiring the precise search for companies capable of meeting the needs of each company with a strict level of quality. Which tasks to outsource and which company to choose? These questions are important to ask before embarking on the adventure of outsourcing.

Digitizing internally is a good alternative. Your digitized processes are internal, your teams formerly mobilized for their execution, now have a control role and devote the rest of the time to actions that are more important for your core business.

Outsourcing that makes the company dependent on the external

The value of a business is generally based on its ability to control all of its processes and production steps. In this way, all stages of production can be modified if necessary, monitored and adapted according to customer needs.

By outsourcing this part of your business, you depend on the outside. However, making your business dependent on another company that will have access to your customers’ data is not good publicity for you and will not reassure your customers.

The external service provider will be in full control of the delivery of the expected service (time, quality etc.), and you will not know what happened to the data sent for processing.

The risk of losing control

If the past few months have taught us anything, it’s that no market is immune. A business can suddenly find itself in trouble and turn an entire market upside down. In the case of an outsourcing provider, it is taking the risk that the company is no longer able to provide the expected service and one thing leading to another, this can have serious consequences on your own business.

Digitizing internally allows you to keep permanent control over your activities. You will be dependent on yourself and will be able to keep an eye on the progress of the processing of each of your documents. Implementing automation software also guarantees you safer and more reliable operation.

A quality that can be affected

Having a task outsourced can affect the quality of your service. Internally, you are well aware of the level of requirements of each of your clients. The converse is not true for the outside company which does not know the specifications of your customers. Certain requirements will be treated as standards and thus put you at odds with your customers.

Your supplier may also be affected by external factors affecting the quality of the service due to you. You may not be kept informed of these changes: for example an influx of orders from your supplier revising the entire order of priority.

Using in-house digitalizing software gives you the ability to prioritize and personalize tasks for each client. Some will want to extract such and such fields while others want to extract different fields. You can adapt the extraction on a case-by-case basis, respect the instructions and specifications while having control over any occasional modifications.

Sometimes more difficult synchronization

Outsourcing a task requires synchronizing the work on various tools. However, each supplier does not necessarily have the software to share data efficiently with yours and automatically. If it can sometimes be done, it should be noted that synchronization is sometimes impossible quite simply because your supplier will not take the trouble to fill in an interface that does not provide it with anything. This can lead to certain delays even if you commission someone internally to carry out data entry, for example.

La Klippa solution: Digitalization and internal

Cut is a company specializing in the digitalization of business processes. As explained throughout this article, outsourcing seems to be the key to any problem but the reality is quite different. OCR (or Optical Character Recognition) is a technology for reading and extracting written or typescript data from a document. Associated with an application, this technology can be used anywhere and at any time.

Using Klippa’s OCR API, choose to internalize your business processes. Instead of outsourcing, the OCR API is easily implemented into your business software.

Based on machine learning and artificial intelligence, the OCR API automates your data entry and extraction. Customize the fields to extract, add authorization fields… Make the OCR API your working tool. Thus, you keep control over your activities thanks to secure software, accessible from your server. Submit your documents (photos and PDF) to the OCR API, processing each document takes a few seconds.

Find out more about the reasons to internalize by reading This article Klippa’s blog.



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