The global healthcare IT outsourcing market is highly competitive with the presence of a large number of players providing various innovative services, says Transparency Market Research (TMR) in a research report. Several healthcare IT outsourcing companies are focusing on the development of their personal analytical platforms to improve patient data management and the quality of patient care systems. Furthermore, owing to factors such as growing compliance pressure from governments and rising demand for customized patient care, leading technology vendors are getting into strategic partnerships and mergers to strengthen their portfolio and position in the market. For instance, IBM Corporation is focusing on providing personalized healthcare IT solutions along with incessant enhancement of their cognitive computing forum, Watson. The leading companies operating in the global healthcare IT outsourcing market are IBM Corporation, Tata Consultancy Services, McKesson Corporation, Accenture Plc., Cognizant Technology Solutions, Allscripts Healthcare Solutions Inc., Wipro Limited, L&T Infotech, Infosys Limited, and HCL Technologies.
The global market for healthcare IT outsourcing is anticipated to witness a 6.7% CAGR from 2015 to 2023. The market’s opportunity is expected to be worth US$61.2 bn by the end of 2023 from a valuation of US$34 bn in 2014.
Care Management to Take over Leading Position of Healthcare Administration by 2023
On the basis of application, the global healthcare IT outsourcing market is segmented into care management, healthcare administration, and IT infrastructure management. Amidst these, in 2014, healthcare administration emerged dominant with a share of 36.8% in the global healthcare IT outsourcing market. However, by the end of 2023, the care management segment is expected to take over the healthcare administration with a share of 37.4% in the same year. According to a TMR analyst, “With the growing consumer base and healthcare infrastructure investments worldwide, there has been a significant rise in the number of healthcare operations such as inventory management, asset management, financial data management, patient record management, and other administration services.” This has further resulted in a rise in healthcare administration applications across the globe. By end use, the market is projected to be led by healthcare providers until 2023.
Geographically, the global healthcare IT outsourcing market has been segmented into the Middle East and Africa, Latin America, Asia Pacific, Europe, and North America. In 2014, North America emerged as the leading regional segment with a market worth US$13.44 bn and is expected to retain a lead until 2023 with a valuation of US$21.23 bn in the same year. The growth of the market in North America can be attributed to the growing need for efficient healthcare services, especially for the older population. The high demand for convergence and emergence of public financed plans is expected to bode well for the growth of the market in the region. However, Asia Pacific is likely to register strong growth in the global healthcare IT outsourcing market during the forecast period.
Need for Curbing High Costs of In-house Healthcare IT Solutions to Boost Adoption
The pressure on healthcare service providers is rising extensively with the growing number of patients and outsourcing of the IT solutions emerging as a mean of cost saving. According to a survey by Economist Intelligence Unit, in 2014 the health care expense as a percentage of GDP in North America was 17.4%, in Europe it was 10% and Latin America it was 8%. As a result of this, governments initiated the implementation of healthcare It outsourcing and also passed excessive funds for it. The growing need for high level IT convergence along with cost reductions, higher productivity, and higher patient satisfaction levels is another factor propelling the growth of the market. However, the growth of the market is likely to be negatively impacted by the diverse regulatory conditions across the globe.
This review is based on a Transparency Market Research report titled, “Healthcare IT Outsourcing Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015–2023.”
The global healthcare IT outsourcing market is segmented as below:
- Care Management
- IT Infrastructure Management
- Healthcare Payers
- Healthcare Providers
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
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