Healthcare IT Outsourcing Market Overview
The convergence of Information Technology and the healthcare industry is not the latest news, however, the notion is constantly subjected to innovations on the technological front. Leading healthcare organizations, as a part of their business digitalization strategy, are moving towards outsourcing their IT wings rather than investing in in-house teams.
Consequently, IT outsourcing services providers are entering the landscape to offer solutions for various healthcare business operations such as pharmacy information, revenue cycle management, electronic health records, inventory management, and laboratory information systems.
Healthcare IT Outsourcing to Come Handy during the Global Coronavirus Crisis
Healthcare organizations around the world are facing unprecedented challenges while ensuring chronic healthcare management as the world is locked down due to the global outbreak of COVID-19. The current situation has amplified the need for technologically advanced and IT-based healthcare systems that can help doctors treat their patients remotely.
As a result, leading players in the global healthcare IT outsourcing market are increasing their focus on offering IT tools that can enable healthcare professionals to monitor health and progress of their patients digitally, while reducing the cost as well as exposure of patients to life-threatening environments outside.
For instance, In June 2020, -MonitorMe™ - a unique medical monitoring program that connects healthcare professionals with at-home patients - announced that it has established a partnership with Harvey Nash/Nash Tech Global - global leader in software development, business process services, and outsourcing solutions, and leading provider of IT outsourcing services.
Through this partnership, the companies are aiming to offer a mechanism to carry out a real-time health and wellness monitoring program to bridge the gaps between on-staff clinicians, healthcare workers, and at-home patients, especially during the novel coronavirus pandemic.
Cyber Security Threats and Lack of Data Storage Infrastructures Hinder Market Growth
The healthcare industry is taking most of its operations on digital platforms, as the trend of digitalization is booming in this landscape. Through healthcare IT outsourcing services, a majority of leading industry players have implemented a digital business model across the world, where data is becoming one of the most important assets for healthcare businesses.
However, the healthcare industry is largely exposed and vulnerable to ransomware attacks and cyber security breaches. For instance, in April 2020, Cognizant - an American multinational corporation that provides IT services, including digital, technology, consulting, and operations services - was hit by a massive ‘Maze’ ransomware attack.
The attack hit its customers as well, and the company is expected to spend nearly US$ 70 million to recover the damages made by the ransomware. Thereby, the growing cyber threat hovering over the healthcare industry may have a negative impact on the growth of the healthcare IT outsourcing market in the coming years.
Furthermore, through various business operations, the healthcare industry generates massive amounts of data every day, and this makes it highly challenging to track, store, and retrieve data electronically in an efficient way.
Healthcare IT outsourcing services involve different data processing operations in the areas such as patient records, payment records, and remote monitoring systems. Maintaining high levels of business efficiency across these operations without a robust data storage infrastructure may prove to be a big challenge for stakeholders in the healthcare IT outsourcing market.
Healthcare IT Outsourcing Market: Region-wise Analysis
Based on the geographical factors, the healthcare IT outsourcing market is broadly divided into seven regions - North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East & Africa.
Growing stronghold of global leaders from the healthcare sector in the United States of America (U.S.) is expected to give a stronghold for stakeholders in the healthcare IT outsourcing market in North America. With the largest revenue share in the global market, leading players in the healthcare IT outsourcing market are expected to witness lucrative business opportunities in the region.
In North America, market players with the specialization and expertise in both healthcare and technologies will maintain a competitive edge. The need for innovation in the North American healthcare industry will trigger regional players to invest heavily in research & development activities in the fields of life science, biomedical sciences, insurance, forensic, and disease research.
Stakeholders in the region will also witness immense pressure of mitigating healthcare costs with innovations in application development. This will further trigger innovation in the North American market for healthcare IT outsourcing services.
While the developed regions continue to dominate the global healthcare IT outsourcing market, leading players in developing economies are expected to introduce diverse offerings to strengthen their position on the global platform.
Astonishing growth of the IT industry in emerging economies in Asia Pacific including China, India, Singapore, and Indonesia, is expected to create new opportunities for stakeholders in the healthcare IT outsourcing market. In addition, significantly lower labour costs, manpower, and highly skilled IT resources will boost the growth prospects of the Asia Pacific market for healthcare IT outsourcing in the coming years.
Healthcare IT Outsourcing Market: Competitive Landscape
- Tata Consultancy Services Limited,
- Accenture PLC
- International Business Machines (IBM) Corporation
- Dell Inc.
- Wipro Limited
- Siemens Healthcare
- Cognizant Technology Solutions
- Optum, Inc.
- Hewlett-Packard Company
- HCL Technologies
- McKesson Corporation
- Allscripts Healthcare Solutions Inc.
In November 2019, Tata Consultancy Services (TCS) - an Indian multinational information technology services, consulting, and business solutions company - announced that it has made a decision to expand its partnership with Cardinal Health, Inc. - an American multinational health care services company.
With this partnership, TCS is aiming to transform its IT operating models to help Cardinal Health become a product-centric IT organization. The company will embrace a new operating model with TCS’s Machine-First™ Delivery Model (MFDM™) and Enterprise Agile vision to improve its business agility and gain a competitive edge with continuous innovation.
In March 2020, IBM Watson Health - a division of the International Business Machines Corporation, (IBM), an American multinational information technology company - announced its strategic partnership with EBSCO Information Services (EBSCO) - a leading provider of research databases, e-journals, magazine subscriptions, e-books and discovery service to libraries of all kinds.
The collaboration is announced to be aimed at enhancing the operations and clinical decision support (CDS) for healthcare organizations. Both the companies will combine their respective healthcare IT solutions - DynaMed and IBM Micromedex with Watson to form a single solution suite that can offer evidence-based insights to make clinical decisions.
Healthcare IT Outsourcing Market: Segment Analysis
The healthcare IT outsourcing market can be segmented on the basis of the following:
- Hospital Information Systems
- Pharmaceutical and Life Science Research
- Medical Device Software
- Patient Tracking
- Remote Monitoring
- Telemetric Systems
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