According to a new market report published by Transparency Market Research titled “Healthcare IT Outsourcing Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023,” the global healthcare IT outsourcing market is expected to reach a value of US$61.28 bn by 2023. The market is estimated to expand at a CAGR of 6.7% during the forecast period from 2015 to 2023. The need to curb high costs of in-house healthcare IT systems, growing government regulations and mandates, and growing focus on healthcare analytics are driving the expansion of the healthcare IT outsourcing market globally.
North America was the largest market for healthcare IT outsourcing in the year 2014, with a market share of around 40%. The adoption of healthcare IT outsourcing solutions in the healthcare payers and provider facilities of North America has improved healthcare productivity by enabling them to deliver better quality care at lower cost. Asia Pacific is expected to be the fastest growing market for healthcare IT outsourcing at a projected CAGR of 10.5% during the forecast period (2015 – 2023).
Factors such as rising growth in healthcare infrastructure, demand for cost-effective IT administrative services, and growing government interventions to encourage technology-driven affordable healthcare services, are expected to lead to the growth of the healthcare IT outsourcing market. Moreover, rising overall healthcare spending and rising patient base across the globe further drives the need to outsource IT solutions for optimum healthcare management and increased focus on core healthcare operations.
Globally, administration segment occupied approximately 37% of the healthcare IT outsourcing market in 2014. This is the result of a greater role of IT outsourcing in healthcare administrative services such as patient data management, inventory management, billing, and health record management. The emergence of highly converged IT outsourced platforms for multiple operations has resulted in improved healthcare administration. Care management is expected to be the fastest growing segment during the forecast period at an expected CAGR of 8.3%. Increasing patient base and demand for quality care services are the major factors responsible for the growing demand for care management solutions and services.
Healthcare providers was the largest end-use segment of the healthcare IT outsourcing market, accounting for approximately 55% of the total market in 2014. The demand comes from large and medium sized healthcare provider organizations for deploying cost effective IT services. Healthcare payers is expected to be the fastest growing end-use area of healthcare IT outsourcing at a projected CAGR of 7.0% during the forecast period. Over the years, there has been significant growth in government initiatives and mandates for covering maximum number of citizens under its affordable care reforms, and for encouraging greater role of IT in healthcare industry.
In recent years, leading healthcare IT outsourcing vendors are looking at offering highly customized and converged solutions to healthcare payers and providers across the globe. Leading healthcare IT outsourcing providers in 2014 included Accenture Plc., IBM Corporation, Cognizant Technology Solutions, L&T Infotech, Tata Consultancy Services, Infosys Limited., Allscripts Healthcare Solutions, Inc., McKesson Corporation, HCL Technologies Limited, and Wipro Limited.