Outsourcing is a developing phenomenon within the healthcare information technology market. It involves a screening process under which an organization chooses a suitable third-party service provider for handling its manufacturing and administrative units effectively. The outsourcing of IT solutions in the healthcare industry is an efficient solution for mitigating the increasing healthcare costs and to meet the increasing demand for quality. It allows healthcare providers to focus on their core services and also helps in lowering the management costs.
In the past few years, the trend of healthcare IT sourcing has risen exponentially amongst large organizations as well as mid-sized organizations. It has been seen that in some cases, whole information management systems are outsourced, while in others, only the prime services such as the implementation of CRM, EMR, and billing systems are outsourced.
Rising Utilization of Health Record Systems to Propel Healthcare IT Outsourcing Market
The global healthere IT outsourcing market is majorly fuelled by the increasing demand for an efficient and strong IT infrastructure in healthcare and the absence of skilled professionals. The increasing compliance pressure from governments worldwide and the mounting dependence on cutting-edge technology solutions in order to provide effective healthcare administration has also impacted the market positively.
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In addition, the introduction of a number of healthcare reforms by governments globally has also resulted in the increased utilization of IT outsourcing within the healthcare industry. Furthermore, the rising utilization of population health management technologies, health record systems, and the increasing dependence on data analytics are also amongst the key factors augmenting the development of the market.
Administration Segment Led Market with a Share of about 37% in 2014
In terms of application, the healthcare IT outsourcing market can be segmented into administration, care management, and IT infrastructure services. Amongst these, in 2014, the segment of administration led the market with a share of about 37%. This is due to the increasing utilization of IT outsourcing within healthcare administrative services such as inventory management, health record management, and patient data management.
On the other hand, the segment of care management is predicted to be the most swiftly developing segment in the coming years and is predicted to expand at an 8.30% CAGR from 2015 to 2023. This is owing to an increasing demand for quality care services and the rising patient base. By end-use, the market is segmented into healthcare payers and healthcare providers. Amongst these, in 2014, healthcare providers emerged as the largest end-use segment in the market and constituted a share of about 55% in the market. On the other hand, the segment of healthcare payers is predicted to be the most swiftly developing end-use segment and is anticipated to grow at a 7.0% CAGR from 2015 to 2023.
North America Held Largest Share of Approximately 40% in 2014
Geographically, the market can be segmented into Europe, North America, Latin America, Asia Pacific, and the Middle East and Africa. Amongst these, North America emerged as the biggest market in 2014 and constituted a share of approximately 40% in the market. This is owing to the increasing adoption of healthcare IT sourcing solutions by healthcare provider and payer facilities within North America. On the other hand, Asia Pacific is predicted to be the most swiftly developing market in the coming years, rising at a 10.50% CAGR from 2015 to 2023.
The key players dominant in the market are Accenture Plc., Cognizant Technology Solutions, L&T Infotech, Tata Consultancy Services, Infosys Limited., McKesson Corporation, and Wipro Limited, among others.