Healthcare IT outsourcing refers to the process of hiring an external technology partner to fulfil organization's IT needs and accelerate the project delivery. The healthcare outsourcing industry has revolutionized business outsourcing processes due to reduction in costs, development of global delivery models, and provision of secured data access. With the help of outsourcing IT services, healthcare providers can easily manage their patient data and medical records. It also helps the healthcare sector to analyze large amounts of data of clinical research and discover new medicines. Therefore, this emerging business model has attracted huge interest in recent years by leading health enterprises.
Market Statistics:
The global healthcare IT outsourcing market is estimated to account for US$ 64.08 Bn in terms of value by the end of 2022.
Drivers:
Growing adoption of e-prescribing, telehealth, mHealth, and other healthcare IT solutions due to COVID-19 is expected to augment the growth of the global healthcare IT outsourcing market over the forecast period. Outbreak of COVID-19 led to some spectacular estimations about IT outsourcing services in the healthcare market. The pandemic has increased the demand/use of mHealth, telehealth, and other healthcare IT solutions. In April 2020, Consumer Technology Association (CTA) and American Telemedicine Association (ATA) announced the launch of a new website of telehealth technology solutions amid the COVID-19 pandemic. The website is launched to assist the health care industry during the coronavirus outbreak.
Opportunities:
Shifting focus towards patient-centric systems and increase in patient-centric and value-based approaches in healthcare is expected to offer lucrative growth opportunities for players in the global healthcare IT outsourcing market. In July 2020, Allscripts and Microsoft Corp. teamed up to develop and deliver cloud-based health IT solutions. These IT solutions will offer many added benefits beyond the on-premise version that will improve organizational effectiveness, solution interoperability, clinician ease of use, and an improved patient experience.
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Restraints:
High cost of deployment of healthcare IT solutions, rising incidences of data breach and loss of confidentiality, lack of standard platform, and cultural differences and language barriers are some major factors expected to hinder growth of the global healthcare IT outsourcing market. A Health Affairs study estimates that the typical multi-physician practice spend roughly US$ 162,000 to implement an EHR, with US$ 85,000 going toward first-year maintenance costs. Several studies estimate the cost of purchasing and installing an electronic health record (EHR) ranges from US$ 15,000 to 70,000 per provider.
Global Healthcare IT Outsourcing Market - Impact of Coronavirus (Covid-19) Pandemic
The outbreak of COVID-19 has forever changed the healthcare market’s day-to-day operations and long-term strategies. The global pandemic has highlighted the need for innovative health technologies that can help improve health outcomes by providing shortcuts to solutions despite lack of infrastructure and resources. To ensure that all countries benefit from health innovation, WHO (the World Health Organization) has compiled a compendium of 24 new technologies that can be used in low-resource settings. In April 2022, The Baker-Polito Administration, in collaboration with Color Health, launched a new free telehealth program to help residents more easily access COVID-19 treatment.
Key Takeaways:
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.
Among application, payer outsourcing market segment held dominant position in the global healthcare IT outsourcing market in 2022, accounting for 39.3% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
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 planned to collaborate with leading health providers to advance digitalization of healthcare globally, by providing sensors and advanced digital technology to improve patient outcomes and increase the connectivity for more efficient monitoring in hospitals and homes.
- Outbreak of COVID-19 is expected to propel growth of the global healthcare IT outsourcing market. The deadly spread of COVID-19 has forced health systems across the country to adopt telehealth at a rapid rate. For instance, in June 2020, athenahealth launched a new telehealth solution, athenaTelehealth, that is integrated into the vendor’s EHR system, athenaOne.
Competitive Landscape:
Major players operating in the global healthcare IT outsourcing market include
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.
Recent Developments:
In February 2022 Clinixir Company Limited selected Oracle’s innovative clinical research and pharmacovigilance solutions as its eClinical platform. Clinixir chose Oracle One Cloud Service for its comprehensive, end-to-end technology capabilities and breadth of applications.
In July 2021 Philips and Cognizant collaborated to develop end-to-end digital health solutions that will enable healthcare organizations and life sciences companies to improve patient care and accelerate clinical trials.
