Healthcare IT Outsourcing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The healthcare IT outsourcing market is segmented by Type (Payers HCIT Outsourcing, Providers HCIT Outsourcing), End User, and Geography

Market Snapshot

Healthcare IT Outsourcing Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 8.3 %
Healthcare IT Outsourcing Market Key Players

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Market Overview

The healthcare IT outsourcing market is expected to register a CAGR of nearly 8.3% during the forecast period. The market is expected to grow due to the rising pressure to reduce healthcare costs, globally, and increasing need to manage cash flow in back-office administration and IT management systems are the major factors driving the growth of the healthcare IT outsourcing market.

Additionally, the increased patient-centric and value-based approaches in healthcare, shortage of in-house trained IT professionals, government focus on introducing IT in healthcare, and reduction in operational and healthcare costs are driving the market. However, the threat to data security and confidentiality, lack of a standard platform, and shortcomings in performance, as compared to expectations, act as restrainting factor for the growth of the market.

Scope of the Report

As per the scope of the report, outsourcing refers to the set of economic practices used by firms to use other companies to perform certain stages of production processes. Healthcare companies are found outsourcing their services, such as manufacturing or research, to various vendors to provide quality healthcare facilities. 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. Thus, the adoption of healthcare outsourcing techniques has increased in the recent years.

Type
Payers HCIT Outsourcing
Hospital Information System (HIS)
Laboratory Information System (LIS)
Radiology Information System (RIS)
Electronic Medical Records (EMR)
Other Types
Providers HCIT Outsourcing
Revenue Cycle Management (RCM) System
Healthcare Analytics
End User
Healthcare Provider System
Biopharmaceutical Industry
Clinical Research Organization
Other End Users
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle-East & Africa
GCC
South Africa
Rest of Middle-East & Africa
South America
Brazil
Argentina
Rest of South America

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Key Market Trends

Payers HCIT Outsourcing Segment is Expected to Witness a Healthy Growth Over the Forecast Period

The payers HCIT outsourcing segment is expected to witness a healthy CAGR over the forecast period, owing to significant changes in the healthcare landscape. On account of regulatory amendments and escalating costs, most healthcare firms adopted new technologies and outsourcing business models.

Currently, large companies are collaborating with large BPOs and KPOs for services, such as health claims, billing and accounts, and healthcare IT operations. As the number of people with insurance is on the rise, managing the processes efficiently is becoming a lower-value contribution to the bottom line. Having benefited from the cost saving and improved efficiency in quality, more payers are outsourcing to large BPOs with integrated cloud-based platforms, for claim administration and member lifecycle management. In an attempt to reduce the costs while providing high-quality patient care, healthcare insurance payers are streamlining their processes. The steady growth in the number of people opting for insurance and technological advancements have paved the path for the increase in healthcare payer services.

Healthcare IT Outsourcing Market Key Trends

North America Dominates the Market and Expected to do the Same in the Forecast Period

Currently, North America dominates the healthcare IT outsourcing market, and it is expected to continue its stronghold over the forecast period. This region is expected to increase its market share in the future, owing to its well-established healthcare industry and better reimbursement systems. The United States therefore holds the majority of the market in the North American region, due to the higher adoption of digital healthcare and rising investments made by the companies in the country.

Healthcare IT Outsourcing Market Growth by Region

Competitive Landscape

The healthcare IT outsourcing market is highly competitive and consists of several major players. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence, by introducing new products and services at low prices. For instance, in 2017, Infosys launched Infosys Nia, the next-generation integrated artificial intelligence platform. Some of the major companies operating in the market are IBM, Oracle, Cerner, Mckesson, Philips Healthcare, Siemens Healthcare, Accenture, Tata Consultancy Services, Dell, and Infosys.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Lack of Infrastructure or Funding Needed for Better and Secure IT Facilities

      2. 4.2.2 Increased Patient-centric and Value-based Approaches in Healthcare

      3. 4.2.3 Shortage of In-house, Trained IT Professionals

      4. 4.2.4 Government Focus on Introducing IT in Healthcare

    3. 4.3 Market Restraints

      1. 4.3.1 Threat to Data Security and Confidentiality

      2. 4.3.2 Lack of Standard Platform

      3. 4.3.3 Shortcomings in Performance as Compared to Expectations

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Payers HCIT Outsourcing

        1. 5.1.1.1 Hospital Information System (HIS)

        2. 5.1.1.2 Laboratory Information System (LIS)

        3. 5.1.1.3 Radiology Information System (RIS)

        4. 5.1.1.4 Electronic Medical Records (EMR)

        5. 5.1.1.5 Other Types

      2. 5.1.2 Providers HCIT Outsourcing

        1. 5.1.2.1 Revenue Cycle Management (RCM) System

        2. 5.1.2.2 Healthcare Analytics

    2. 5.2 End User

      1. 5.2.1 Healthcare Provider System

      2. 5.2.2 Biopharmaceutical Industry

      3. 5.2.3 Clinical Research Organization

      4. 5.2.4 Other End Users

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Italy

        5. 5.3.2.5 Spain

        6. 5.3.2.6 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Australia

        5. 5.3.3.5 South Korea

        6. 5.3.3.6 Rest of Asia-Pacific

      4. 5.3.4 Middle-East & Africa

        1. 5.3.4.1 GCC

        2. 5.3.4.2 South Africa

        3. 5.3.4.3 Rest of Middle-East & Africa

      5. 5.3.5 South America

        1. 5.3.5.1 Brazil

        2. 5.3.5.2 Argentina

        3. 5.3.5.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Accenture

      2. 6.1.2 Cerner Corporation

      3. 6.1.3 Dell

      4. 6.1.4 GKF

      5. 6.1.5 International Business Machines

      6. 6.1.6 Infosys Limited

      7. 6.1.7 Koninklijke Philips NV

      8. 6.1.8 Oracle

      9. 6.1.9 Tata Consultancy Services

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
**Competitive Landscape Covers - Business Overview, Financials, Products and Strategies, and Recent Developments

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Frequently Asked Questions

The Healthcare IT Outsourcing Market market is studied from 2018 - 2026.

The Healthcare IT Outsourcing Market is growing at a CAGR of 8.3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

IBM, Oracle, Omega Healthcare, Accenture, Koninklijke Philips NV are the major companies operating in Healthcare IT Outsourcing Market.

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