The healthcare IT outsourcing market is expected to witness robust growth during 2015-2023, as government mandates promise to lead to rise in spending on IT operations. Furthermore, the demand for quality is healthcare is rising around the world, especially in remote areas.
The market is expected to reach evaluation of $61.2 bn, rising at 6.70% CAGR. Additionally, recent surveys point towards increase in quality in healthcare and cost-efficiencies worldwide. Additionally, digital disruption is also expected to bring immense benefits to healthcare, a true necessity in many hospitals.
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Trends Driving the Healthcare IT Outsourcing Market
- Healthcare reforms continue to push for better interaction between hospitals and patients. According to Centers for Medicare and Medicaid Services, hospitals and health centers aroud the country are mandated to work towards combining technology and patient care for more interactive and efficient operations. Healthcare facilities are mandated to work towards e-portals which would make it easier to obtain, view, and interact with online information. Additionally, they are also expected to promote electronic exchange of data for more accurate information. Lastly, the accuracy in data is expected to positively impact health outcomes. Hence, the newly passed mandates, cost-effectiveness of outsourcing, and positive health outcomes are expected to drive growth of the healthcare IT outsourcing market.
- E-Systems for medical record are quickly becoming the most preferred options for hospitals around the world. On one hand, it eases the operations with less paperwork, helps hospitals maintain a clean record of customers, and transfer these records with ease to various stakeholders. Additionally, hospitals can outsource the liability that comes with maintaining sensitive medical records, which are unnecessary additional burden in many cases. Filing records online are also expected to lead to major cost-savings and better long term use as increasingly young consumer prefer to interact through digital mediums. The changing preferences of young consumers, the efficiency of the process, and potential of outsourcing of liabilities are expected to drive significant growth for the healthcare IT outsourcing market.
- Healthcare is one of the major sector in the United States, accounting for 18% of its GDP. It generates nearly 11% of the total employment. However, despite the tremendous potential, the industry lags behind other sectors in digital adoption. However, it is expected to catch up quickly in the near future, as many industry leaders are setting their goals on dedicating nearly 50% of IT budget on technology innovation. Simultaneously venture funding for digital growth is an all-time high. It registered 32% growth since 2011 to reach nearly $6 billion in 2017.
- New communication channels encouraging interaction between doctors and patients are expected to create new sources of revenues in the healthcare IT outsourcing market. Before the digital disruptions, concerns regarding sexual health often went unaddressed. However, today it is a billion dollar industry in its own right, thanks to startups who are reaching out to patients anonymously and changing the traditional setup. Many patients feel far more comfortable discussing issues regarding their sexual health online as compared to in-person, despite constant attempts to train doctors for better interpersonal interactions. This is expected to be a major boon for the healthcare IT outsourcing market as new revenue streams promise a lucrative future for hospitals.
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- Retail clinics continue to attract more young patients in the US, thanks to their affordability, and ease-of-making an appointment. Largely these clinics are located in malls, wherein seeing a doctor or picking up a new medicine is just a step away. This is a major challenge for hospitals as they rely on treatment for chronic illnesses or hospitalization, which is a limited focus. E-portals promise a way for hospitals to level the playing field with retail clinics through many interactive technologies. This is expected to drive major growth in the healthcare IT outsourcing market.
The information presented in this review is based on a TMR report, titled “Healthcare IT Outsourcing Market (Application – Care Management, Administration, and IT Infrastructure Management; End Use – Healthcare Providers and Healthcare Payers) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2024.”
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