It is a common practice for organization to create an internal data management system and perhaps overlook the outsourced document management system. Even though an internal data management system may provide articulate data management, it must not be relied upon as a complete data management system. There are bottlenecks associated with the internal data management and these include increased cost of document management, increased space competition, time consumption and exposure to risks of document loss and destruction.

Although the company management may put in place mitigation measures to control and protect company data, it may still be exposed to other factors such as disasters like floors and fire. Therefore an external document management system is called for. In the in-house document management, there is increased cost of data management such as through hiring staff to manage the data, buying of equipments and IT software and this can be costly.

With the in-house document management there is space competition in that the documents storage requires space and with limited availability of space, this can lead to insufficient space availability for smooth and safe operations in the company. Another reason why an off-site document management system is required is because, the service provider has the experts who are knowledgeable in document control such as indexing, purging, back-file scanning, inventory clean-ups, on-site and off-site data audits as well as secure disposal.