HEALTHCARE IT OUTSOURCING MARKET ANALYSIS

The global healthcare IT outsourcing market was valued at US$ 59.99 Bn in 2021 and is forecast to reach a value of US$ 97.73 Bn by 2028 at a CAGR of 7.3% between 2022 and 2028. The global healthcare IT outsourcing market is experiencing strong growth due to the increase in disease burden, increase in adoration of healthcare IT solutions, increase in patient-centric and value-based approaches in healthcare, and government mandates & support for healthcare IT solutions. However, lack of standard platform and rising incidences of data breach and loss of confidentiality are major factors expected to hamper the growth of the market.

Global Healthcare IT Outsourcing Market: Regional Insights

Based on geography, the healthcare IT outsourcing market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market over the forecast period owing to the high adoption of digital healthcare, increase in healthcare IT spending, and government mandates & support for healthcare IT solutions in the region. For instance, in July 2020, Allscripts and Microsoft Corp. extended their long-standing strategic alliance to enable the expanded development and delivery of cloud-based health IT solutions. These IT solutions with integrated analytics will deliver better health outcomes in hospitals worldwide.

Asia Pacific is also expected to witness robust growth in the global healthcare IT outsourcing market owing to the increase in adoption of healthcare IT solutions and favorable government initiatives in the region. For instance, in July 2022, GE Healthcare launched what it claims to be the first 5G Innovation Lab in India. 5G has the potential to disrupt patient care continuum, transforming diagnosis, therapy, and prognosis due to massive bandwidth, high data speeds, low latency, and highly reliable connectivity.

Figure 1. Global Healthcare IT Outsourcing Market Share (%), by Region, 2021

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Global Healthcare IT Outsourcing Market Drivers:

Increase in adoption of healthcare IT solutions across the globe is expected to augment growth of the global healthcare IT outsourcing market during the forecast period. For instance, health IT improves quality of healthcare delivery, decreases medical errors, increases patient safety, and strengthens the interaction between healthcare providers and patients. In February 2022, MyHealthcare announced the launch of its MyHealthcare Enterprise Application (MHEA) for hospitals and healthcare institutions towards digitalization of healthcare in India.

Increase in patient-centric & value-based approaches in healthcare is expected to boost growth of the global healthcare IT outsourcing market over the forecast period. For instance, in May 2021, Optum and Bassett Healthcare Network collaborated to enhance Bassett's clinical and operational performance and advance the delivery of high-quality, convenient, and affordable healthcare for patients across Central New York.

Global Healthcare IT Outsourcing Market Opportunities:

Government mandates & support for healthcare IT solutions is expected to provide significant growth opportunities for players in the global healthcare IT outsourcing market. For instance, in August 2021, Prime Minister of India Narendra Modi announced the launch of the National Digital Health Mission (NDHM) on the 74th Independence Day. PM Modi planned to digitize personal medical records and connect diagnostic centers, medical institutions, and state medical records. NDHM will provide people living in a remote location easy access and appointment to the nearest district hospital.

Outbreak of COVID-19 (global pandemic) is expected to offer lucrative growth opportunities for players in the healthcare IT outsourcing market. For instance, the demand and use of HCIT (healthcare IT) solutions has increased due to the pandemic. Moreover, healthcare technology has advanced at an accelerated rate as a result of the amplified care needs brought on by the COVID-19 pandemic. In short, digital healthcare has witnessed a spike within the healthcare system, which in turn has increased the use of healthcare IT solutions.

Global Healthcare IT Outsourcing Market Trends:

Increase in digitalization of healthcare is expected to drive growth of the global healthcare IT outsourcing market. For instance, in September 2022, Honeywell to collaborate with leading health providers to advance digitalization of healthcare globally, improving patient outcomes and increasing connectivity for more efficient monitoring in hospitals and homes.

Growing need to integrate healthcare IT solutions is expected to propel the growth of the global healthcare IT outsourcing market. For instance, in May 2022, Modmed announced the launch of OBGYN-specific software suite set. It is an all-in-one EHR, practice management, patient engagement, payments, image and inventory management, & analytics solution that will bring practice and workflow innovation to obstetrics and gynecology.

Global Healthcare IT Outsourcing Market Restraints:

Lack of standard platform is expected to hamper growth of the global healthcare IT outsourcing market. Healthcare interoperability refers to timely and secure access, integration and use of electronic health data so that it can be used to optimize health outcomes for individuals. The present healthcare IT system lacks efficient interoperability, which makes it difficult for one provider to access information that was originally documented by another.

Rising incidences of data breach and loss of confidentiality is expected to hinder growth of the healthcare IT outsourcing market. For instance, in the healthcare sector, the 2022 Cost of the Data Breach report has found that nearly half (47%) of the breaches analyzed exposed customer personal data, such as name, contact details, SSN, date of birth, passwords, or healthcare data, representing the most common type of breached record in the report.

Figure 2. Global Healthcare IT Outsourcing Market Share (%), by Application, 2021

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Global Healthcare IT Outsourcing Market Segmentation:

The global healthcare IT outsourcing market report is segmented into Application, End-User, and Geography.

Based on Application, the global healthcare IT outsourcing market is segmented into Payer Outsourcing and Providers Outsourcing. Of which, Payer Outsourcing Segment (Hospital Information System, Laboratory Information System, Radiology Information System, Electronic Medical Records, and Other Types) is expected to dominate the market over the forecast period and this is attributed to the increase in adoption of healthcare IT solutions and increased patient-centric and value-based approaches in healthcare.

Based on End-User, the global healthcare IT outsourcing market is segmented into Healthcare, Pharmaceutical & Biotechnology, and Others. Out of which, Healthcare Segment is expected to dominate the market during the forecast period and this is attributed to the rise in trend of outsourcing in healthcare. Healthcare services are outsourced by most of the companies to cut down on their costs and use their resources for other purposes.

Pharmaceutical & Biotechnology Segment is also expected to witness significant growth in the near future and this is owing to the increase in demand for healthcare IT solutions around the world. Outsourcing in the pharmaceutical & biotechnology has gained importance over the years, to drive down cost and comply with the ever-changing regulatory environment.

Global Healthcare IT Outsourcing Market: Key Developments

In January 2022 IBM and Francisco signed an agreement under which Francisco Partners will acquire healthcare data and analytics assets from International Business Machines (IBM) that are currently part of the Watson Health business.

In March 2022, Epic announced the launch of Garden Plot. It is a software-as-a-service (SaaS) designed for independent medical groups looking to use Epic EHR tools.

Global Healthcare IT Outsourcing Market: Key Companies Insights

The global healthcare IT outsourcing market is highly competitive. This is attributed to the rise in need to integrate healthcare IT solutions, as a result, players in the market are focusing on launching novel products/solutions in the market.

Some of the key players in the global healthcare IT outsourcing market are Oracle Corporation, Siemens Healthineers, Infosys Limited, Dell Technologies Inc., Philips Healthcare, Accenture, Cerner, Tata Consultancy Services (TCS), Mckesson Corporation, and International Business Machines Corporation (IBM), among others.

*Definition: Healthcare IT outsourcing refers to the process of hiring an external technology partner to fulfil organization's IT needs and accelerate the project delivery. It helps healthcare sector to analyse large amounts of data of clinical research and discover new medicines.