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Published Date: 2016-03-11Number of Pages: 90

Healthcare IT Outsourcing Market (Application – Care Management, Administration, and IT Infrastructure Services; End Use – Healthcare Providers and Healthcare Payers) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2024

The global healthcare IT outsourcing market has registered a significant rise over the last decade. The cost-efficiency these outsourcing solutions offer to healthcare providers, as well as payers, has increased their adoption across the world in the recent times. The growing need for an enhanced level of IT convergence with reduced costs, improved productivity, and a higher level of patient satisfaction is likely to drive their demand substantially over the coming years.

In 2014, the market’s opportunity was worth US$34 bn, which is expected to rise at a CAGR of 6.70% between 2015 and 2023 and reach an estimation of US$61.2 bn by the end of the forecast period.

Healthcare Administration to Remain Dominant Application Area of Healthcare IT Outsourcing

Healthcare administration, IT infrastructure management, and care management are the three main application areas of healthcare IT outsourcing. In 2014, these services were mostly utilized in administration, which held a share of nearly 37% in their overall application.

The immense growth of the patient pool and the rising investments in healthcare infrastructure across the world resulted in the increased number of healthcare administrative processes, such as billing, asset management, operations management, and healthcare data management for both healthcare providers and payers, boosting the application these services in healthcare administration. Analysts expect a continuous growth in this trend over the next few years, ensuring the dominance of this segment.

In terms of revenue, healthcare administration contributed US$12.5 bn in 2014, which is projected to rise up to US$21.5 bn by the end of the forecast period. Apart from this, the demand for healthcare IT outsourcing is also expected to experience robust growth in the care management segment in the coming years.

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Unmet Medical Need in Asia Pacific to Provide Potential Opportunities to Market Players

Asia Pacific, Europe, Latin America, North America, and the Middle East and Africa are the key regional markets for healthcare IT outsourcing across the world. In 2014, North America led the global market with a share of over 40%. The rise in the initiatives and mandates by governments to make quality healthcare available for people at much lower rates, such as the U.S. Affordable Care Act-2010, has increased the adoption of healthcare IT outsourcing by healthcare providers in this region.

The opportunity in the North America healthcare IT outsourcing market stood at US$13.4 bn in 2014. Expanding at a CAGR of 5.10% during the period from 2015 to 2023, it is likely to worth US$21.2 bn by the end of 2023. Although North America will remain the biggest adopter of this service in the coming years, Asia Pacific is projected to register the fastest rise at a CAGR of 10.50% during the forecast period. The unmet medical needs in developing countries of Asia Pacific is anticipated to provide potential growth opportunities to market players over the next few years.

IBM Corp., Tata Consultancy Services Ltd., Wipro Ltd., Cognizant Technology Solutions, and Accenture Plc lead this market. Other prominent healthcare IT outsourcing solution providers are L&T Infotech, HCL Technologies Ltd., McKesson Corp., Infosys Ltd., and Allscripts Healthcare Solutions Inc.

Global Healthcare IT Outsourcing Market: Overview

Unmet medical needs in emerging nations is a crucial driver of the global healthcare IT outsourcing market. As these nations boast abundant availability of skilled manpower, major players can seize increased share if they enter into strategic alliance with local players operating in these nations. Consequent to the rising IT outsourcing in the healthcare sector, the quality of patient care has increased. The industry has benefited from greater access to means if healthcare IT technologies as well. 

Based on application, IT infrastructure services, care management, and administration are the key market segments. By end use, the market can be bifurcated into healthcare providers and healthcare payers. Besides evaluating the various aspects chalking the market’s progress across the aforementioned segments, the report profiles some of the major vendors in the healthcare IT outsourcing market. Strategies adopted by these companies, their market positioning, and development trends are identified in the report. 

The report presents a detailed analysis of the global healthcare IT outsourcing market, covering various factors supporting its growth and those posing threat. The report is intended to enable stakeholders get a better and more comprehensive perspective of the market. The findings of the market study can prove helpful to companies, investors, policy makers, and regulatory authorities who aim at expanding their reach worldwide.

Global Healthcare IT Outsourcing Market: Trends and Opportunities 

The trend of third-party outsourcing is making wave in the healthcare sector. With favorable regulations and initiatives by various governments aimed at promoting high quality but cost-efficient healthcare services, healthcare IT outsourcing is expected to pick pace in the coming years. The outsourcing solutions are designed to help curb expenses incurred on in-house healthcare. This has emerged as a crucial driving factor for the market and is unlikely to decline anytime in the near future.

The spike in demand for IT outsourcing in the healthcare sector is indicative of the market’s promising growth. However, with the integration of information technology, the threat of data break and loss of confidentiality is expected to scale. This factor will continue posing threat as long as healthcare IT outsourcing remains vulnerable to cyber threats. Additionally, the high fragmentation in the healthcare and medical sectors may create bottlenecks in the execution of IT platforms in the industries. This will in turn obstruct operations of service provides. Besides this, language barriers and cultural differences may hamper the market’s growth to an extent in the coming years.

Global Healthcare IT Outsourcing Market: Regional Outlook 

Regionally, Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa constitute the key market segments. Among these regions, North America had command over the dominant 40% of the global healthcare IT outsourcing market in 2014. Its dominance is expected to remain intact over the forecast period, as the region exhibits high adoption of advanced IT outsourcing solutions and boasts a sophisticated healthcare infrastructure. 

However, its Asia Pacific counterpart is expected to showcase a stronger CAGR of 10.5% between 2015 and 2024. 

Global Healthcare IT Outsourcing Market: Vendor Landscape
The escalating demand for outsourcing services in the healthcare sector has deepened the competition within the global healthcare IT outsourcing market. To capitalize on the prevalent opportunities, the vendors are looking to provide improved patient data management solution and develop their own analytical platforms. In addition, strategic partnerships and offering low-cost advanced solutions are considered crucial for players who aim consolidating the lion’s share in the market.

Some of the leading companies profiled in the report are IBM Corporation, Accenture Plc., Cognizant Technology Solutions, Infosys Limited, L&T Infotech, McKesson Corporation, Allscripts Healthcare Solutions, Inc., Wipro Limited. Healthcare IT, Tata Consultancy Services, HCL Technologies Ltd., and Infosys Limited. 

The global healthcare IT outsourcing market is segmented in the report as: 

By Application

  • Care Management
  • Administration
  • IT Infrastructure Services 

By End Use

  • Healthcare Providers
  • Healthcare Payers

By Geography

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa 

This report gives you access to decisive data such as: 

  • Market growth drivers
  • Factors limiting market growth
  • Current market trends
  • Market structure
  • Market projections for the coming years 

Key highlights of this report 

  • Overview of key market forces propelling and restraining market growth
  • Up-to-date analyses of market trends and technological improvements
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors
  • An array of graphics and SWOT analysis of major industry segments
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis
  • Offers a clear understanding of the competitive landscape and key product segments


 
 
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