Published On: September 17th, 2020 / Categories: Data Conversion, Data Entry, Outsourcing / Tags: , , , , /

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The Optical Character Recognition (OCR) is popularly implemented as a type of data entry method. It is a type of data entry method used for converting images of printed, handwritten, or typed texts like invoices, electronic receipts, documents, etc., into a machine-encoded text form so it can be electronically edited and searched.

Optical Character Recognition (OCR) has improved the data entry process beyond one’s wildest dreams. Once you have an idea of how it operates, there are many benefits that one can realize from the process. These benefits are what makes Optical Character Recognition (OCR) one of the proven technologies used to produce high quality and accurate data entry services.

How Optical Character Recognition (OCR) Works

The Optical Character Recognition (OCR) method in data entry is a three-stage process. Firstly, the Optical Character Recognition (OCR) software pre-process the document. There are various methods used to pre-process documents. They include deskewing, line removal, segmentation, etc.

All these pre-processing methods seek to guarantee the accuracy of the conversion process.

Secondly, either the Feature Extraction or Matrix Matching, which are the types of Optical Character Recognition (OCR) algorithm, is used to begin the conversion process. The Matrix Matching, also called pattern matching, uses a stored glyph that you compare to the elements of the documents being converted. The documents font type and size are a dependent factor when using this method. This method is best for documents with traditional fonts.

The Feature Extraction is like the former Optical Character Recognition (OCR) algorithm. The only difference between both algorithms is that the feature extraction algorithm has its stored glyphs broken down into more specific elements. These particular elements are used for accurate differentiation between document characters. This process has more specific requirements and is a more complicated process. The image should have the least resolution of 300-dpi and must also be clean. The Matrix matching algorithm is less particular about image quality. It can also work on images that are less than ideal.

When you complete the last stage of post-processing after the feature extraction or matrix matching, it starts to ensure the highest accuracy level in the converted document.

Advantages Of Optical Character Recognition (OCR)

There are many advantages of Optical Character Recognition (OCR). It majorly helps in increasing the efficiency and effectiveness of the work. It has the capacity to search through enormous content quickly. This makes it very helpful in office settings, most notably. Optical Character Recognition (OCR) helps office settings deal with a high inflow of documents and large scanning. We have discussed some of the significant advantages of the Optical Character Recognition (OCR) based data entry method:

Faster Searches

Optical Character Recognition (OCR) software enables quick retrieval of data when needed. It also allows one to achieve more productivity. This will allow firms to redirect the time and efforts their employees spend to extract relevant data. The time and energy can be utilized on core competencies in the organization.

Reduced Cost

The Optical Character Recognition (OCR) method helps organizations reduce various costs. For example, the cost of hiring manpower for data extraction. Asides that, Optical Character Recognition (OCR) method helps to bring down several other costs like copying, shipping charge, printing, etc.

Reduce Errors

Various organizations have been destroyed by the problem of data inaccuracy and loss. Optical Character Recognition (OCR) method has been of help in reducing errors by a great deal.

More Storage Space

Firms have always looked to run a paperless approach. The Optical Character Recognition (OCR) method has made it possible to do so. There is still a larger space with lesser documents. Money used to buy cabinets is also saved when a firm uses the Optical Character Recognition (OCR) method.

Ready Availability

The Optical Character Recognition (OCR) makes it possible to make documents available in different places. This is possible by scanning the information on the material. One can have information available in a USB drive, memory card, and also a smartphone if necessary and get the needed information with ease.

Efficient Management

The Optical Character Recognition (OCR) method in data entry renders all processes automated. Thus, the management of confidential documents or data becomes effortless and easy.


Every organization gives more importance to the security of their documents or data. When the documents or data are scanned and stored in digital formats, fire outbreak and thievery won’t pose a threat. Also, you need to prevent mishandling and mismanagement of data or documents. To do this, access to the documents or data in an organization should be limited.

Optical Character Recognition (OCR) also improves customer service. Clients sometimes give information out in segments over a long time. In such cases, the availability of brisk information happens to be very critical. Optical Character Recognition (OCR) assists in recovering and putting away the archives orderly at a great speed. This improves the client experience by decreasing the waiting time for the clients.

The Optical Character Recognition (OCR) method can be utilized by all types of organizations, irrespective of the domain they belong to. This data entry process is generally utilized by the human resource department of many organizations. Also, healthcare facilities, insurance companies, law firms, real estate, and mortgage firms, finance companies, and several others. You should get an Optical Character Recognition (OCR) software if you seek to go paperless in your firm.

A more affordable option is outsourcing Optical Character Recognition (OCR) based data entry. It is very cost-effective. One can get all images scanned and converted in various formats, which include .GIF, .TIFF, .PNG, .DOCX, .TXT, .XLSX, .XLS, .JPEG, .DOC, etc., at very affordable costs. They can also convert the following:

  • Journals, magazines, directories,
  • Bank statements, survey forms, application forms,
  • Catalogs, brochures, orders.

To further increase the accuracy of the documents or data, you can make use of Optical Character Recognition (OCR) cleanup services. A trustworthy and competent data entry outsourcing service provider usually has secure transfer technologies. Also, have non-disclosure and confidentiality agreements to ensure data protection and privacy.

Joydeep SinghaGrowth Expert
Founder at AskDataEntry – India’s leading online virtual administration services provider for businesses and individuals. He is a seasoned marketing professional who is an expert in digital marketing and entrepreneurship.

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