Healthcare IT Outsourcing Market

Global Healthcare IT Outsourcing Market is valued at USD 45.73 Billion in 2022 and it is expected to reach USD 75.77 Billion by 2029 with a CAGR of 7.48% over the forecast period.

Global Healthcare IT Outsourcing Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2022-2028: The market will expand due to the increasing adoption of digital health technologies, such as EHRs and telemedicine, and growing demand for healthcare analytics and big data solutions.

Scope of Global Healthcare IT Outsourcing Market Report-

Healthcare IT outsourcing refers to the practice of hiring external vendors to manage and maintain healthcare information technology (IT) systems and applications. This can include outsourcing services related to electronic health records (EHRs), healthcare analytics, telemedicine, healthcare data management, revenue cycle management, and other healthcare-related IT services. The healthcare IT outsourcing industry has grown rapidly over the past two decades as healthcare organizations have sought to reduce costs, increase efficiency, and improve patient outcomes by leveraging external IT expertise. The growth of this market can be traced back to the early 2000s when many healthcare organizations began to recognize the benefits of outsourcing IT services.

Healthcare IT outsourcing services are used by a wide range of healthcare organizations, including hospitals, clinics, and other healthcare providers. These services are often used to manage and maintain complex healthcare IT systems, such as EHRs and healthcare analytics platforms, which require specialized expertise and resources. The end-users of healthcare IT outsourcing services include healthcare providers, payers, and other healthcare organizations. These organizations may outsource a range of IT services, from basic helpdesk support to complex software development projects.

COVID-19 Impact on the Healthcare IT Outsourcing market:

The COVID-19 pandemic has had both positive and negative impacts on the healthcare IT outsourcing market. On the positive side, the pandemic has increased demand for telemedicine, remote patient monitoring, and other digital health solutions, which has led to increased demand for IT outsourcing services. Additionally, many healthcare organizations have been forced to prioritize cost savings and efficiency measures due to financial pressures, which has led to increased interest in outsourcing IT services.

On the negative side, the pandemic has led to supply chain disruptions, travel restrictions, and other challenges that have made it more difficult for healthcare IT outsourcing vendors to deliver services. Additionally, some healthcare organizations have delayed IT projects or reduced budgets for outsourcing services due to financial constraints caused by the pandemic.

Key Players of Global Healthcare IT Outsourcing Market Report-

• Accenture
• Cognizant
• Dell Inc.
• HCL Technologies
• IBM Corporation
• Infosys
• McKesson Corporation
• Tata Consultancy Services
• Wipro Limited
• Xerox Corporation
• Allscripts Healthcare Solutions, Inc.
• Atos SE
• Capgemini
• CGI Group Inc.
• Cisco Systems, Inc.
• Concentrix Corporation
• CSC (Computer Sciences Corporation)
• Dell EMC
• DXC Technology
• GE Healthcare
• Genpact
• Hexaware Technologies
• Infor Inc.
• KPMG
• Mphasis Limited
• NTT DATA Services
• Optum, Inc.
• Persistent Systems
• Philips Healthcare
• PwC
• Siemens Healthineers
• Syntel Inc.
• Tech Mahindra
• Virtusa Corporation
• WNS (Holdings) Ltd.
• Zensar Technologies Ltd.
• ZS Associates, Inc.
• HGS (Hinduja Global Solutions) Limited
• Techwave Consulting Inc.
• L&T Infotech

Market Segmentation:

By Service:

• Provider HCIT Outsourcing
• Payer HCIT Outsourcing
• Operational HCIT Outsourcing
• Life Sciences HCIT Outsourcing
• IT Infrastructure Outsourcing

By Application:

• Electronic Health Records (EHR)
• Customer Management Systems (CMS)
• Revenue Cycle Management (RCM)
• Fraud Detection
• Others

By End-User:

• Healthcare Provider System
• Pharmaceutical, Biotechnology
• Clinical Research Organization (CRO)
• Health Insurance

Revenue Generation Model:

The revenue generation model of healthcare IT outsourcing typically involves charging clients for services on a per-hour or per-project basis. Some vendors also offer managed IT services, which are typically provided on a monthly or annual basis.

Supply Chain Model:

The supply chain model of healthcare IT outsourcing typically involves multiple vendors and service providers working together to deliver IT services to healthcare organizations. For example, a vendor may provide software development services, while another vendor provides hardware and infrastructure support.

Value Chain Model:

The value chain model of healthcare IT outsourcing typically includes several stages, such as service design, service delivery, and ongoing maintenance and support. Vendors may specialize in one or more stages of the value chain, such as software development or helpdesk support.

Market Drivers:

Increasing adoption of digital health technologies, such as EHRs and telemedicine: The increasing adoption of digital health technologies, such as EHRs and telemedicine, is being driven by a range of factors, including the need to improve patient outcomes, increase efficiency, and reduce costs. According to the Office of the National Coordinator for Health Information Technology (ONC), 97% of non-federal acute care hospitals in the US had adopted certified EHR technology as of 2020. And to the Centers for Disease Control and Prevention (CDC), the percentage of US adults who had a telemedicine visit during the first three months of the COVID-19 pandemic increased from 11% in 2019 to 43% in 2020.

Growing demand for healthcare analytics and big data solutions: Healthcare analytics and big data solutions are driven by the increasing need for healthcare organizations to improve patient outcomes, reduce costs, and enhance operational efficiency. Healthcare analytics and big data solutions enable organizations to collect, process, and analyze large volumes of healthcare data from various sources, including electronic health records (EHRs), medical claims data, and patient-generated data from wearables and other connected devices.

For example, Electronic health records (EHRs) are the largest source of healthcare data, accounting for 80% of all healthcare data. In the United States, medical claims data is collected by the Centers for Medicare and Medicaid Services (CMS) for over 140 million beneficiaries. And the most commonly used wearable devices among US adults are fitness trackers, with 21% of adults owning a fitness tracker. These solutions can help healthcare organizations identify patterns and trends in healthcare data, which can be used to inform clinical decision-making, improve population health management, and optimize resource allocation.

Market Restraints:

The high cost of implementing and maintaining healthcare IT systems: Healthcare organizations need to invest significant resources in hardware, software, and personnel to implement and maintain IT systems. Additionally, ongoing maintenance costs can be high, including software upgrades, cybersecurity measures, and hardware replacement. The ongoing maintenance and support costs for these systems can range from $8,000 to $40,000 per provider per year. And the total cost of ownership (TCO) for an EHR system can range from $15,000 to $70,000 per provider per year. These costs can be a significant barrier to entry for smaller healthcare organizations and may limit the ability of healthcare providers to invest in new IT solutions.

The challenge of integrating disparate IT systems across different healthcare organizations: Integrating disparate IT systems across different healthcare organizations is a major challenge in healthcare IT outsourcing. This is because healthcare organizations often use different software systems and data formats, which can make it difficult to share patient data and collaborate effectively. Additionally, there are complex regulatory requirements around data privacy and security that must be adhered to when sharing healthcare data across organizations. For example, 60% of healthcare organizations reported that their biggest challenge in sharing patient data was the lack of standardization in data formats. Additionally, 47% of organizations reported that they faced challenges with data mapping and translation, which refers to the process of converting data from one format to another.

Opportunity Factors for Healthcare IT Outsourcing Market:

• Increasing demand for personalized and patient-centric healthcare
• Growing interest in digital therapeutics and mobile health applications
• Increasing use of artificial intelligence (AI) and machine learning in healthcare
• Growing demand for healthcare IT outsourcing services in emerging markets
• Growing adoption of cloud-based healthcare IT solutions

Market Trend:

Product and Technology Development:

Increasing use of blockchain technology in healthcare data management and security, growing interest in virtual and augmented reality technologies for healthcare training and education, increased adoption of cloud-based healthcare IT solutions, particularly for EHRs and telemedicine, and the use of AI and machine learning to improve healthcare data analytics and decision-making

Customer Trends:

Increasing demand for personalized and patient-centric healthcare, growing interest in telemedicine and remote patient monitoring solutions, increasing demand for consumer-facing healthcare applications and mobile health solutions, and growing interest in wearables and other connected health devices

Market Competition Nature:

The healthcare IT outsourcing market is highly competitive, with a large number of global and regional players offering a range of services. Key players in the market are focused on strategies such as mergers and acquisitions, partnerships and collaborations, and product and technology development to stay ahead of the competition.

For example, in 2020, Cognizant acquired Lev, a Salesforce consulting firm, to enhance its healthcare IT capabilities. Similarly, in 2021, Accenture announced the acquisition of Edenhouse, a UK-based SAP consulting firm, to strengthen its healthcare IT offerings.

In terms of future strategies, key players in the healthcare IT outsourcing market are likely to focus on innovation and the development of new technologies to meet the evolving needs of healthcare organizations. This may include the use of AI and machine learning, blockchain, and other emerging technologies to improve healthcare data management, analytics, and security. Additionally, vendors may focus on developing specialized expertise in areas such as telemedicine, digital therapeutics, and personalized healthcare to differentiate themselves from the competition.

Geography Analysis:

North America:

North America is the largest market for healthcare IT outsourcing, with the United States being the largest contributor to market growth. The region has a highly developed healthcare IT infrastructure, with a large number of healthcare organizations adopting digital solutions to improve patient care and outcomes. The increasing adoption of electronic health records (EHRs) and other healthcare IT solutions is driving the growth of the healthcare IT outsourcing market in the region. For example, in 2020, 90% of healthcare organizations in the United States adopted at least a basic electronic health record (EHR) system.

Europe:

The European healthcare IT outsourcing market is expected to experience steady growth in the coming years, driven by factors such as increasing demand for digital health solutions, government initiatives to promote healthcare IT adoption, and a growing need for cost-effective healthcare services. According to European Commission, 90% of European healthcare professionals believe that digital health solutions have the potential to improve the quality of care.

The UK is one of the largest markets for healthcare IT outsourcing in Europe, driven by government initiatives such as the National Health Service (NHS) Digital Programme and the creation of the NHS Digital Academy. Germany is also a significant market for healthcare IT outsourcing, driven by the country's aging population and the need to improve healthcare infrastructure. The number of people aged 65 and over is expected to increase by 75% between 2020 and 2070, from 96 million to 168 million.

Key Benefits of Global Healthcare IT Outsourcing Market Report–

• Global Healthcare IT Outsourcing Market report covers in-depth historical and forecast analysis.
• Global Healthcare IT Outsourcing Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market Opportunities, Competitive Analysis, and Regional and Country Level.
• Global Healthcare IT Outsourcing Market report helps to identify opportunities in the marketplace.
• Global Healthcare IT Outsourcing Market report covers an extensive analysis of emerging trends and the competitive landscape.