Technological advancement has created opportunities for businesses and at the same time, they have also raised risks and challenges. And the biggest challenge is to handle data or information effectively. Data is critical for both large and small businesses as it is the key to successful operations. Some of the organizations still maintain physical records whereas many businesses digitized their data with the help of available document management service providers. BPO services India helps an organization in the transition process from paper-based to electronic data management and also ensures data security and confidentiality. If an organization does not have any electronic way of data management, then they have to be prepared to face following risks.
No proper Disaster recovery method:
There are situations like the paper-based archive store caught fire and all the customer information has gone. Sometimes it can be a natural disaster and yet another time it is man-made. Also, the physical documents can wear and tear out due to the physical handling and sometimes weather cause an adverse effect. To back up the physical files, one can go by creating several copies of the same document and store them in a different area and handled delicately. But, it will add up the storage and software cost and also it will be difficult to manage multiple copies of the same document, whereas it is quite easier to back up the digital files. So, document management services protect the data from natural disaster.
Increase in Budget:
If an organization is growing rapidly, they should switch to digital data management option as soon as possible. As loads of data needs to be stored properly, the company will end up buying or renting space to store physical documents. And they have to hire dedicated and qualified professionals to handle their delicate data which will increase their budget. But, if the organization chooses to move towards digitization, then there will be one major transitional cost. Also, it will reduce all the other costs of storage space, extra staff, and software.
Losing in Competition
Electronic document management ensures better communication, lower costs, quick turnaround times and improved quality and productivity of an organization. So, it will act as a key component for success. If record management is not done properly, then the company will lose in this competitive digital world.
Affects Customer Satisfaction:
Electronic document management can help to fulfill customer demand as and when needed. If the source documents have stored in any file cabinet, then it will be difficult to handle queries and issues raised by the customer. This will result in annoying and frustrated customers as there are people who just cannot wait patiently for a long period of time till the document is retrieved. So, it is better to avoid such situation by having an electronic system in place.
Affects decision-Making process:
With paper-based documents, it will be tough to make a sudden and quick business decision. Because it will definitely have to go with the incomplete data from the entire team which will lead to a loss in terms of revenue or market share. So, the organization should outsource document conversion services to the team of specialists who are skilled enough in scanning and converting a wide range of documents into effective and required electronic files which will help the decision-making process easier and smoother.
The costs of going paperless are actually way less as compared to the potential consequences of not switching to electronic document management. Apart from the above risks, there are many minor challenges involved with physical documents. So, every organization should take the first and hardest step to move towards digitization which will give them a better return on Investment.