Managing and processing vast amounts of data is crucial to organizational success in today's business landscape. However, the sheer volume of accumulated paperwork and forms can overwhelm companies of all sizes. As a result, many enterprises are turning to a game-changing solution known as "Outsource Form Processing" to streamline their data management and enhance operational efficiency.
Outsourcing form processing is delegating the laborious task of handling various forms, such as invoices, applications, and other data-centric documents. By doing this, businesses can focus on their core skills while leaving the time-consuming and resource-intensive form-handling process to expert professionals.
Let's explore the intricacies of this disruptive practice in greater depth to learn how it could revolutionize how organizations manage and leverage their valuable data.
What is Form Processing?
Form processing is the systematic method of capturing, interpreting, and converting data from various forms and documents into digital formats, allowing for efficient storage, retrieval, and analysis. This crucial process involves extracting relevant information, such as text, numbers, checkboxes, and signatures, from physical or digital forms and transforming it into structured data that can be easily integrated into databases or utilized for business decision-making.
Form processing is an essential tool for businesses looking to successfully manage and use data since it helps to streamline administrative processes, reduce errors associated with manual data entry, and improve workflow efficiency.
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Who can Benefit from Form Processing?
Outsourcing forms processing can benefit organizations that regularly deal with a significant volume of paper-based forms. Manual processing becomes inefficient and time-consuming when the number of forms exceeds a certain threshold, typically around 10-20 forms per month. At this point, turning to robotic process automation (RPA) can significantly enhance team productivity.
For associations and companies with more than 100 worker hours' worth of form processing monthly, outsourcing form processing through workflow management software equipped with Optical Character Recognition (OCR) technology becomes a logical and cost-effective choice.
These businesses can profit greatly from automating their operations for handling forms by utilizing an outsourced forms processing service. The built-in OCR software in the workflow management system enables the seamless digitization of forms, improving accuracy and reducing data entry errors.
Additionally, outsourcing can benefit businesses with several teams managing different facets of form processing. By entrusting the complex and time-intensive task of form processing to specialized external service providers, these teams can redirect their focus towards more strategic and core functions, optimizing overall operational efficiency.
What are the Advantages of Forms Processing?
1. Cut Down on Expenses and Save Money
Implementing forms processing solutions leads to substantial cost reductions by eliminating manual labor, paper usage, printing, and storage expenses. It maximizes resource allocation, allowing businesses to save money and direct resources to more important uses.
2. Simplify and Optimize Workflows
Forms processing simplifies and optimizes the entire data capture and management process. With automated workflows, information flows seamlessly through different stages, reducing bottlenecks and ensuring efficient form handling from submission to data integration.
3. Efficiency and Cost Savings
By outsourcing forms processing, businesses can reduce inefficiencies and waste associated with manual data entry and paperwork. This streamlined approach helps cut expenses, ultimately saving money for the organization.
4. Establish Uniformity and Accuracy
Form processing establishes uniformity and accuracy in data collection by applying predefined templates and automated data extraction methods. This standardization enhances data quality and minimizes errors, leading to more reliable and trustworthy data for decision-making.
5. Adaptability and Flexibility
Forms processing solutions can be tailored to suit various forms and data formats. It offers flexibility to manage various document layouts and accurately gather data from many sources, meeting the organization's unique needs.
How Much Does a Form Processing System Cost?
Several variables can affect how much a forms processing system costs. Businesses that use form processing services can access various services, including document processing, data management, payroll processing, data standardization, and online form processing. These services are designed to enhance efficiency and operational effectiveness for businesses.
The overall cost of a forms processing solution is typically composed of the following components:
1. Software Cost: The expense of acquiring the forms processing software affects the total cost. The price can vary depending on the software's capabilities, features, and licensing model.
2. Installation and Configuration: The time and effort required to install and configure the software to suit the organization's specific needs and workflows are additional cost components.
3. Form Optimization: To achieve optimal recognition rates, forms may need to be optimized, and recognition templates must be created for each data field on every form type.
4. Integration with Back-End Systems: Defining and integrating data exchanges with back-end systems add to the overall cost, as seamless integration is crucial for efficient data management.
5. Training: Training sessions for users and administrators to familiarize them with the forms processing system are necessary, and their costs should be considered.
6. Verification Efforts: Work dedicated to verifying the accuracy of the recognition results is an essential aspect contributing to the total cost.
7. IT Infrastructure and Support: Ongoing maintenance and support costs should also be factored into the overall expenditure.
What are types of Forms and Types of Form Processing?
Types of Forms:
1. Fixed Forms
These are forms in which the data to be extracted is consistently located in the same absolute position on the page. This allows for a straightforward data extraction process, as the information can be reliably found at specific locations. An example of a fixed form is a standard credit application form.
2. Semi-Structured (or Unframed) Forms
In contrast to fixed forms, semi-structured forms have variable data fields, and their positions may vary from one document to another. These forms do not follow a strict template and may include documents like letters, contracts, and invoices. Around 80% of the documents in an organization fall under the semi-structured category.
Types of Form Processing:
1. Manual Form Processing
Using this technique, human operators input data into the forms. While this approach can work for small-scale applications, it is time-consuming and prone to errors. Manual data entry has limitations in speed, accuracy, and cost-effectiveness.
2. Automatic Form Processing
Automatic form processing systems use various recognition methods such as Optical Character Recognition (OCR) for machine-printed text, Optical Mark Recognition (OMR) for checkboxes and marks, Bar Code Recognition (BCR) for barcode data, and Intelligent Character Recognition (ICR) for hand-printed text. These systems can automate data processing by utilizing pre-defined templates and layouts, making them more efficient and accurate than manual data entry.
The Bottom Line
Form processing can be a tedious and time-consuming activity that may result in inefficiencies, inaccuracies, and wasted resources. But outsourcing form processing to a reputable company can enhance accuracy, reduce mistakes, and save time. Organizations can unlock the full potential of automated forms processing solutions by leveraging workflow management software with in-built OCR software.
Outsourcing form processing services can help businesses focus on their core competencies and increase operational efficiency while ensuring data is processed accurately and consistently. By embracing the potential benefits of form processing services, businesses can achieve exceptional results and streamline their workflows for greater overall success.
