Healthcare IT Outsourcing Market
Report ID: SQMIG35D2174
Healthcare IT Outsourcing Market Size, Share, Growth Analysis, By Application(Provider (EHR, RCM, LIMS) Payer (CRM, Claims Management), By Industry(Healthcare System, Healthcare Insurance Industry, Pharmaceutical Industry, Clinical Research Organization), By Product(Care Management, Administration, IT Infrastructure Management), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG35D2174 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
101
|Figures:
75
Healthcare IT Outsourcing Market Insights
Global Healthcare IT Outsourcing Market size was valued at USD 66180.02 million in 2022 and is poised to grow from USD 70403.55 million in 2023 to USD 114778.53 million by 2031, growing at a CAGR of 6.3% in the forecast period (2024-2031).
Outsourcing is a new phenomenon in the healthcare information technology market. A screening method is used by an organization to select the most successful outside service provider to run its management and administrative unit. Outsourcing IT services in the healthcare sector has proven to be an effective way to contain rising healthcare costs while meeting the growing demand for high-quality care. Healthcare IT outsourcing solutions have grown in popularity over time, attracting both large and small businesses. Some information management systems are completely outsourced, whereas others only outsource core application functions such as EMR, CRM, and billing system setup.
Hospitals all across the world are increasingly choosing to use electronic medical record systems. It facilitates operations by reducing paperwork, aids hospitals in maintaining accurate client information, and makes it simple to transfer these records to different stakeholders. Additionally, hospitals can outsource the hassle of keeping private medical records, which is often a preventable surplus liability. Due to cost reductions, the creation of global delivery models, and the availability of secure data access, the healthcare outsourcing sector has transformed corporate outsourcing operations. As a result, the use of healthcare outsourcing strategies has grown recently.
US Healthcare IT Outsourcing Market is poised to grow at a sustainable CAGR for the next forecast year.
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Healthcare IT Outsourcing Market Segmental Analysis
The global healthcare IT outsourcing market is segmented on the basis of application, industry, product, and region. According to application, it is segmented into Provider (EHR, RCM, LIMS), Payer (CRM, Claims Management, Fraud Detection, Billing), Life Science (ERP, CTMS, CDMS), Operational (SCM, BPM), and Infrastructure (IMS, Cloud Computing). According to industry, it is divided into Healthcare System, Healthcare Insurance Industry, Pharmaceutical Industry, Clinical Research Organization, Biotechnology and others. According to product, Healthcare IT Outsourcing Market is categorized into Care Management, Administration, IT Infrastructure Management. Based on the region, the market is divided into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.
Healthcare IT Outsourcing Market Analysis by Application
Electronic health records (EHR), laboratory information management systems (LIMS), pharmacy information systems (PIS), and revenue cycle management (RCM) systems are the other subgroups of provider HCIT outsourcing. The sub-segments of payer HCIT outsourcing include customer relationship management (CRM), claim processing, billing system, and fraud and detection. Enterprise resource planning (ERP), clinical trial management systems (CTMS), clinical data management systems (CDMS), and R&D IT services are the four subcategories of life science HCIT outsourcing. The operational HCIT outsourcing sub-segments which are considered are business process management (BPM) and supply chain management (SCM). Infrastructure management services (IMS) and cloud computing are two notable sub-segments of the IT infrastructure outsourcing market.
The payers HCIT outsourcing segment is anticipated to increase at a solid CAGR throughout the projected period owing to considerable expansion. The landscape of healthcare hasn't undergone any big shifts. Regulation changes and growing prices have led to an increase in the cost of the majority of healthcare services. RMS embraced new technology and outsourcing-based business models.
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Healthcare IT Outsourcing Market Regional Insights
North America held the highest share in the global healthcare IT outsourcing market in 2021 and is expected to maintain its dominance during the forecast period. This can be attributed to its mature healthcare sector and superior reimbursement frameworks. As a result of its higher adoption of digital healthcare and growing corporate investment, the United States now holds majority of the North American region. Additionally, healthcare organisations in the U.S. are implementing paperless working practices, which has resulted in a massive influx of patient data. As a result, the majority of healthcare organizations are using outside service providers to manage such a massive volume of data.
Asia Pacific healthcare IT outsourcing market is expected to grow at the fastest CAGR during the forecast period. This is due to rising demand in developing nations like India. The market in India is being driven by a well-developed pharmaceutical and medical education system, a sizable English-speaking population, a low-cost base, and a huge IT talent pool. It is anticipated that the astounding expansion of the IT sector in Asia Pacific's developing nations, such as China, India, Singapore, and Indonesia, would open up new prospects for market participants in healthcare IT outsourcing. Additionally, the Asia Pacific healthcare IT outsourcing market will see increased growth in the next years due to reduced labour prices, manpower needs, and availability of highly experienced IT personnel.
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Healthcare IT Outsourcing Market Dynamics
Healthcare IT Outsourcing Market Driver
- The growing need to reduce healthcare costs globally, as well as the growing need to control cash flow in back-office administration and IT management systems of healthcare providers, payers, and the life science sector, are driving market growth.
- Healthcare providers are under increasing pressure to achieve the "Meaningful Criteria" established by the United States due to a lack of internal IT experience, rising demand for integrated solutions, and these factors. Other factors that are anticipated to influence the healthcare IT outsourcing industry include the federal government, new ICD-10 conversion requirements for coding, ageing population, and rising medical tourism in Asia.
- The growing digitalization of economies, especially those in emerging nations, is another factor influencing market development. A growing dearth of internal IT specialists and a move toward patient-centric technologies are additional significant reasons that will provide profitable market development potential.
- The federal government's increased investment in encouraging the use of these solutions has a further impact on the market. Additionally, the healthcare information technology (IT) outsourcing market is favourably impacted by the rise in healthcare spending, improvements in healthcare infrastructure, and rising demand for extended care delivery.
Healthcare IT Outsourcing Market Restraint
- The fragmented structure of the healthcare system and for healthcare IT outsourcing market, the need for significant investment in outsourcing IT solutions, expanding data security concerns and linguistic hurdles are some reasons that limit market expansion.
- Furthermore, increasing instances of data breach and confidentiality loss, a lack of a standardized platform, and cultural differences are all significant hindrances to the growth of the worldwide healthcare IT outsourcing industry. Data processing activities in the areas of patient records, payment records, and remote monitoring system are all included in healthcare IT outsourcing services. Without a strong data storage infrastructure, maintaining high levels of business efficiency across various processes might prove to be very difficult for market participants in healthcare IT outsourcing.
- Additionally, rising cyber threat that hangs over the healthcare sector might have a detrimental effect on the market expansion for healthcare IT outsourcing in the years to come.
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Healthcare IT Outsourcing Market Competitive Landscape
Global healthcare IT outsourcing market is highly competitive and somewhat fragmented. To maintain a competitive edge, major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. Major Players 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. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D.
Healthcare IT Outsourcing Market Top Player's Company Profiles
- Accenture
- Cognizant Technology Solutions
- Infosys
- Tata Consultancy Services (TCS)
- Wipro
- IBM Corporation
- McKesson Corporation
- HCL Technologies
- Tech Mahindra
Dell Technologies - Siemens Healthineers
- Optum Inc.
- Allscripts Healthcare Solutions
- GE Healthcare
- Philips Healthcare
- DXC Technology
- AGFA Healthcare
- NTT Data Corporation
- Fujitsu
- Hewlett Packard Enterprise (HPE)
Healthcare IT Outsourcing Market Recent Developments
- In May 2022, in order to provide military personnel with a self-directed behavioural health support platform, Magellan Federal, a division of Magellan Health that provides services to the U.S. military, teamed up with NeuroFlow. The platform is a self-help tool designed for preventative care and is meant to complement Magellan Federal's non-medical counselling services. It will gather anonymous population health data for the Department of Defense, which can then modify its intervention offerings as necessary. It can be accessed via phone or computer.
- In February 2022, Oracle's advanced clinical research and pharmacovigilance solutions were chosen by Clinixir Company Limited as its eClinical platform. Clinixir selected Oracle One Cloud Service because of its wide range of applications and extensive, end-to-end technical capabilities.
Healthcare IT Outsourcing Key Market Trends
- The usage of cloud computing in the healthcare industry has significantly risen. The application of distant servers over the internet is the core of cloud computing in the healthcare industry. It facilitates the handling, processing, and storage of medical data. Cloud storage makes it simple for medical professionals and organisations to use web servers to safely store a vast quantity of data. In order to retain and safeguard their patient information, medical businesses have used cloud-based solutions since the EMR (Electronic Medical Records) Mandate came into effect. Improved privacy, cheaper costs, and better patient care through remote operation and cooperation are some benefits of the rising usage of cloud technology in healthcare.
- Telemedicine's development has been hastened by the use of cloud computing in healthcare. Apps that run in the cloud and telemedicine platforms improve accessibility, provide patient health insurance throughout treatment, prevention, and recuperation, and assist exchange of healthcare data. Additionally, several applications provide more sophisticated features like virtual drug usage analysis or video conferencing for medical sessions. In essence, cloud computing is essential for improving telemedicine-based medical treatment.
Healthcare IT Outsourcing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our Global healthcare IT outsourcing market analysis, the requirement to manage cash flow in back-office operations and IT management systems of healthcare providers, payers, and the life science sector, as well as increasing global demand to reduce healthcare costs, is positively impacting the market. Furthermore, the healthcare industry has received strong government support in many different countries, and this support has resulted in a number of technological advancements in recent years. These technological advancements are expected to increase demand for healthcare IT solutions and the use of these services, which will help to upgrade the healthcare infrastructure. The markets in Asia- Pacific region is anticipated to be driven by the availability of trained personnel, low-cost service offerings, and rising use of new technology.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 66180.02 million |
| Market size value in 2031 | USD 114778.53 million |
| Growth Rate | 6.3% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Healthcare IT Outsourcing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Healthcare IT Outsourcing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Healthcare IT Outsourcing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Healthcare IT Outsourcing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Healthcare IT Outsourcing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Healthcare IT Outsourcing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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