Healthcare IT Outsourcing Market
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 - 2023
Global Healthcare IT Outsourcing Market – Overview
Healthcare IT outsourcing is one of the common practices to cut down the operational costs of the market. IT mainly gains help from several government initiatives and regulations to underline the requirement for high-quality healthcare services and how its cost efficiency will benefit masses. One of the larger and promising trends in the global healthcare industry is to be the third-party IT outsourcing. In addition to this, the demand for outsourcing healthcare IT is expected to grow even more because of the growing need of cutting down the in-house healthcare IT costs. Furthermore, in recent years, there has been a substantial growth in terms of funding and investments to develop and strengthen the healthcare infrastructure. This too is helping the development of the global healthcare IT outsourcing market. Other factors such as increasing requirement for customer or patient satisfaction and enhanced productivity and easy availability of services at lower costs are also expected to drive the growth of the global healthcare IT outsourcing market.
There are however some factors that are projected to impede the development of the global healthcare IT outsourcing market and may stop it from reaching its full potential. One of the key restraining factors for market growth has been loss of trust among the end-users. This has happened because of constant loss of confidential data, cyber-attacks, and data breaches. Furthermore, unreliable service providers are further lowering the name of the market and limiting its development. There have been reports that suggest that cultural difference and language barriers may also create problems for the growth of the global healthcare IT outsourcing market.
According to the research report published by Transparency Market Research, the global healthcare IT outsourcing market is expected to reach a valuation worth US$61.2 bn by the year 2023. The forecast period for the report on the global healthcare IT outsourcing market is 2015 to 2023. The market is expected to exhibit a healthy CAGR of 6.70% for the given period of forecast. The market was initially valued at US$34 bn in the year 2014.
Administration Segment to Account for Largest Share in Global Market
In terms of application, the global healthcare IT outsourcing market is divided into IT infrastructural services, administration, and care management. Of these, the segment of administration accounted for around 37% of the overall market share in the year 2014 and it projected to continue to dominate over the course of the given forecast period. There are multiple factors that are responsible for driving the growth of the administration segment of global healthcare IT outsourcing market. Some of the key driving factors are increasing patient pool and growing investments in the healthcare sector. This has resulted in increasing the number of administrative process in the healthcare sector and thus driving the growth of the segment. The segment accounted for around US$12.5 bn in 2014. By the end of the given forecast period in 2023, the segment will account for US$21.5 in valuation.
In terms of end use, the global healthcare IT outsourcing market is divided into healthcare payers and healthcare providers.
North America to Exhibit Promising Growth Rate
In terms of geographical segmentation, the global market for healthcare IT outsourcing is currently led by North America. The regional segment accounted for around 40% of the overall market share. The regional market was valued at US$13.4 bn in the year 2014 and will increase it upto US$21.2 bn by 2023. The regional segment is expected to exhibit a promising CAGR of 5.10% over the course of the given forecast period.
Some of the leading companies in the global healthcare IT outsourcing market are Accenture Plc, Cognizant Technology Solutions, Wipro Ltd., Tata Consultancy Services Ltd., and IBM Corp among others.
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:
- Care Management
- IT Infrastructure Services
By End Use
- Healthcare Providers
- Healthcare Payers
- North America
- 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