Healthcare Outsourcing Market: Introduction
- Outsourcing is an increasingly popular strategy that healthcare organizations can use to control the rising costs of providing services
- Healthcare companies outsource diverse services, such as manufacturing or research, to numerous vendors in order to provide quality healthcare facilities
- Healthcare outsourcing services help vendors minimize administrative cost, the cost of delivering healthcare, electronic medical records management, consumer engagement, and clinical transformation. Moreover, healthcare outsourcing helps minimize errors that occur in medical billing, and minimize staff training cost.
- The healthcare outsourcing industry has revolutionized business outsourcing processes because of reduction in costs, development of world delivery models, and provision of secured data access. Thus, the adoption of healthcare outsourcing techniques has increased in the last few years.
Key Drivers, Restraints, and Opportunities of Healthcare Outsourcing Market
- Increasing pressure to reduce rising healthcare costs, demand for niche services, rise in R & D costs, and stringent regulations are likely to propel the healthcare outsourcing market during the forecast period
- On the opposite hand, increase in consolidation in the healthcare industry is estimated to further offer opportunities that are likely to drive the healthcare outsourcing market during the forecast period
- Hospitals are increasingly outsourcing internal activities to third-party service providers such as medical billing and IT services. Hospitals are primarily outsourcing medical billing and IT services to third-party service providers owing to a scarcity of expertise and the unavailability of skilled resources in the industry. Furthermore, establishment of regulations and accreditation of service providers make them accountable for their quality standards.
- A lack of in-house expertise, capabilities, and budget constraints are major issues faced by private hospitals in the industry. Contract hospital service providers are an effective approach to limit such issues of private hospitals due to the low-cost service offering. This helps establish mutually beneficial relationships between hospitals and third-party service providers.
- Rapid expansion witnessed in the field of big data analytics has started to play a pivotal role in the evolution of medical care practices and research. It offers tools to accumulate, manage, analyze, and absorb large volumes of disparate, structured, and unstructured data produced by current healthcare systems.
- Hidden costs of outsourcing and fear of losing visibility and control over the business process are likely to hamper the healthcare outsourcing market during the forecast period
North America to Dominate Global Healthcare Outsourcing Market
- North America accounted for a prominent share of the market, in terms of revenue, owing to the presence of a large number of service providers in the region. Additionally, increase in outsourcing of local healthcare companies is further driving the healthcare outsourcing market in the region.
- Healthcare companies in developed countries, such as the U.S. are adopting paperless working systems and hence, there is a huge inflow of patient data. Consequently, most of the healthcare companies are hiring third-party service providers in order to manage such a large amount of data. This is expected to propel the market for healthcare outsourcing in the region.
- However, the market in Middle East & Africa and APAC is estimated to expand at a rapid pace during the forecast period due to an increase in outsourcing of healthcare services to countries such as Saudi Arabia, India, and China. Availability of skilled resources, low-cost service offerings, and the increase in adoption of new technologies are expected to drive the market in these regions.
- The Asia-Pacific healthcare BPO market is growing at the highest CAGR during the forecast period, owing to rising demand in emerging countries such as India. Developed pharmaceutical and medical education system, a large English-speaking population, low-cost base, large talent pool, and diverse set of business process outsourcing (BPO) providers, including local and global BPO organizations, are driving the market in India.
Key Players of Healthcare Outsourcing Market
- Key companies are adopting mergers and acquisitions as a key strategy in order to sustain in the highly competitive environment and to enhance market share. For instance, in February 2019, Veritas Capital together with Evergreen Coast Capital, as a minority investor, acquired Athenahealth, Inc. This strengthened the service offering of Virence Health, a subsidiary of Veritas Capital, for hospital and ambulatory customers.
- In July 2019, Cerner Corporation and Amazon Web Services (AWS) partnered to drive healthcare IT innovations. This is expected to lower operational budgets and improve clinical efficiency for healthcare organizations.
- Cerner and Allscripts also offer healthcare IT services , while Sodexo offers catering and facility management services in the industry
Some prominent players operating in the global hospital outsourcing market include:
- Outsource Strategies International
- Medryte Healthcare Solutions
- Piranah Healthcare
- Exel BPO Solutions
- Ascent Health Solutions Inc
- SSR Techvision
Healthcare Outsourcing Market, Research Scope
Healthcare Outsourcing Market, by Type
- Product Outsourcing
- Services Outsourcing
Healthcare Outsourcing Market, by Department
- Finance Outsourcing
- Healthcare Operation Outsourcing
- Clinical Outsourcing
- Non-clinical Outsourcing
- Pathology and Lab Outsourcing
- IT Outsourcing
Healthcare Outsourcing Market, by End-user
- Pharmaceutical and Lifesciences Companies
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.