The healthcare IT outsourcing market has been forecast to increase at a compound annual growth rate (CAGR) of 7.6% over the next five years, increasing from a value of approximately $35 billion at the start of 2013, to hit a total of $50.4 billion by 2018.
Factors propelling the growth of the market are the rising pressure to curb healthcare costs across the globe and the growing need to manage cash flow in back-office administration and IT management systems of healthcare provider, payers, and the life science segment.
Outsourcing of IT solutions in the healthcare industry has emerged as an efficient solution to mitigate rising healthcare costs and to meet the growing demand for quality care.
Over the years, the trend of outsourcing healthcare IT solutions has grown significantly among large organisations and has also attracted mid-sized organisations. In some cases, the entire information management system is outsourced, while in others, only key application services such as implementation of EMR, CRM, and billing systems are outsourced.
IT has never been considered a critical part of healthcare operations. It has traditionally been viewed as an administrative function.
In recent years, however, IT has played a more important role in the delivery of quality patient care and, as a result, healthcare organisations are increasingly relying on it as an essential operational component.
With new technology there is always a learning curve and many providers just aren't in a position to hire and train inside IT staff. They would rather concentrate on their core business: providing healthcare services. That is why many organisations have chosen to outsource their information technology services.
According to a recent report, 'Healthcare IT Outsourcing Market: Global Forecast to 2018,' North America represents the largest region within the healthcare IT outsourcing market (72%) and has been forecast to increase from a value of $25 billion in 2013, to reach $36 billion by 2018.
Asia-Pacific and RoW are expected to register CAGRs of 8.1% and 7.8% (2013 to 2018) respectively, followed by North America (7.6%), and Europe (7.2%).
For more information on the healthcare IT outsourcing market, see the latest research: Healthcare IT Outsourcing Market
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