Numbers provide an odd sense of comfort. Once sufficient individuals begin engaging in a certain activity, that activity no longer appears to be the risky decision, but the right decision. Social proof is the psychological phenomenon referred to above, and it is the reason why numerous companies ultimately end up outsourcing data entry work to India. However, one thing should be noted: conforming to popular opinion and making a soundly informed decision are not necessarily the same thing.

Why "Everyone's Doing It" Feels Reassuring

Of course, the realization that competitors, industry counterparts, and similar businesses have already embraced outsourcing is bound to make you more comfortable about the move. The logic here is that since it is successful for them, then there’s no harm in giving it a try for yourself as well.

The problem is that this way of thinking isn’t completely off track – social proof has its value since it is often a useful shortcut in life, but it is one thing to rely on it for making decisions, and quite another to use it as an excuse not to think.

The Difference Between Copying and Understanding

There is a difference between outsourcing data entry to India because it suits your specific workload and outsourcing data entry just because that's what people tend to do these days. The former will give rise to a well-reasoned and adaptable decision, while the latter could turn out disappointing if you haven't considered whether this solution fits the needs of your company.

For this reason, it's better to take your time and sort things out from the very beginning. In case you are not yet sure what is data entry means for your organization, it would be better to make it clear before trying to figure out whether the current practice of outsourcing data entry fits your case.

Why Social Proof Works Best as a Starting Point, Not an Ending Point

Social proof is indeed helpful in helping you make a decision. Knowing that other businesses similar to yours in size and industry have benefited from using data entry services from Indian providers means that this is an indication worth considering. This is because you know that the technique works in general.

However, you cannot let social proof substitute your assessment of the specific service provider and their cost and process. Businesses within the same industry may have different data needs and requirements that could mean that what worked for another business may not be what works for yours.

The Risk of Following the Crowd Too Passively

The potential danger in relying too much on social proof is that one might end up skipping the necessary process that would ultimately save oneself from getting into trouble. By assuming that "since everyone outsources their work in this way and manages to succeed, we shall also succeed in doing this," a businessman may skip all necessary steps like asking for a sample of work, data security policies, and so on.

That is how social proof could become dangerous for the person relying on it. Being sure about the trend doesn't mean that one should forget about practical issues that will allow successful outsourcing of data entry work in India.

Using Social Proof the Right Way

A more intelligent way to use social proof might be to accept that others have found this idea to be solid, then take your own punch at your specific situation: What is data entry work my business currently paying for in time and errors? Which processes would see the most return from outsourcing? 

What does a really valuable outsourced provider-client relationship mean for my business? When you answer those questions yourself without letting the social proof give you a free pass, you make a choice that's part evidence-based, part precisely suited to you.

Why Reading About Others' Experiences Still Helps

This does not in any way suggest that you disregard the lessons from other companies. Learning from the experiences of other firms who have managed to work with outsourced data entry services can really help reduce your learning curve, preventing you from making the same errors committed by other firms.

The basic difference between the two is that instead of taking someone else’s success stories as an assurance of success, you need to use the knowledge as a basic reference point and test it according to your situation.

A Balanced Way to Approach the Decision

One such concrete way to apply social proof but not allow it to take over your personal analysis is to:

• Observe the overall trend – Many companies that are comparable to yours have switched to outsourcing

• Understand your own particular data requirements and the costs that come with them

• Find out about some service providers yourself instead of just going with the flow

• Try a sample project regardless of how convinced you are from the overall trend

• Analyze the outcome of your particular project before moving ahead

This method takes into consideration the importance of social proof without losing track of your business requirements.

Final Thought

It is very helpful knowledge that other firms have made good decisions about outsourcing data entry work to India; it is quite natural to feel relieved with this knowledge. However, those companies that benefit most from this are the ones that use this relief as the basis for their evaluation, rather than as its substitute.