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Pros and Cons of Data Processing for SMEs

by: Mary Christine Galang

Thursday, June 22, 2017 |

Data processing is an integral component of any business, although it varies in terms of the nature of the services and/or products you offer and also in scale as your business grows larger. Small business enterprises (SMEs) face challenges of keeping up with the rapid pace of technological advancements and maintaining up-to-date technological platforms. Critical issues may arise if SMEs allocate a huge portion of their resources to this alone. Outsourcing options present a beneficial solution in addressing this, with careful considerations of both advantages and disadvantages that can impact SMEs.

Advantages and disadvantages of data processing

Here are some of the pros and cons of data processing for SMEs.


Accuracy, efficiency, and organization. Raw data will be converted to meaningful information readily accessible and to be used in making workflows more organized and resolving issues, among others. Even a simple delay caused by lack or erring information in SME operations can result to significant issues.

Fast processing. SMEs will be able to strategize immediately after data is interpreted. Errors and fraudulent data are detected quickly. This, in turn, allows SMEs to carry out services and offer products quicker.

Better management. It goes without saying that data processing helps your business run smoothly. Especially for SMEs constantly finding ways to grow their business, establish their brand, and provide excellent customer service.


Larger overhead and investments. A data center facility that must be able to house IT equipment is not cheap. This will require a network setup, security foundation, and regular maintenance and updates from IT specialists and hiring essential personnel. SMEs usually opt to outsource their IT department to cut on costs.

Longer wait times. Manual processing is comparatively longer than computer- or machine-processed procedures. SMEs that do not operate 24/7 will have to resume processing the next day. Limited equipment may also mean piling up of data that needs to be processed.

Protracted changeovers. Existing procedures may not be compatible with the available data processing equipment and therefore must be converted first.

With the factors stated above, you should be able to identify whether or not data processing outsourcing is the right choice for your business. Learn more about this discipline and other outsourcing services we offer by visiting www.MicroSourcing.com.

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