IT outsourcing in healthcare refers to the use of third party service providers to manage and maintain technology enabled operations in healthcare provider and payer segments. Some of the outsourced components include patient data management, financial data management, asset management, healthcare data analytics, and various other administrative services. The demand for strong and robust IT infrastructure in healthcare is one the major factors driving the overall healthcare IT outsourcing market. Moreover, due to the lack of skilled workforce with proper IT expertise, maintenance of in-house IT infrastructure becomes a challenging task for healthcare organizations. Outsourcing IT solutions not only gives healthcare payers and providers the opportunity to focus on their core services but also helps in reducing management costs.
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There is also a growing demand for healthcare IT outsourcing as a result of rising compliance pressure from governments globally and growing dependence on advanced technology solutions for effective healthcare administration. Governments pushing healthcare reforms in the form of Affordable Care Act (ACA), International Statistical Classification of Diseases and Related Health Problems (ICD-10) norms, Health Insurance Exchange (HIX), and Medicare, has resulted in growing use of IT outsourcing in the healthcare industry. Outsourcing IT in healthcare plays an important role in enabling optimum resource allocation in hospitals, better quality patient care, and analytics driven management systems. With the increase in overall competition levels among leading IT solution and service providers in terms of developing integrated platforms with higher levels of customization, the healthcare providers/payers are getting better access to IT services at reasonable costs. Moreover, growing partnerships of technology vendors to upgrade and create better platforms, is again playing a greater role in driving the healthcare IT outsourcing market across the globe.
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On the basis of applications, the healthcare IT outsourcing market is categorized into care management, administration, and IT infrastructure management. Factors such as increasing usage of electronic health record systems, population health management technologies, and high reliance on data analytics are resulting in the improved growth of the healthcare IT outsourcing market. End-use segments of the healthcare IT outsourcing market include healthcare payers and healthcare providers. As a result of growing government initiatives to provide affordable care and improved diagnostics, healthcare organizations across the globe are giving higher preference to IT outsourcing to cut operational costs and be able to focus on core tasks.
There is growing need to electronically track the large amount of complex data generated by day-to-day operations in healthcare including electronic monitoring, billing codes, medical records, medical inventory management, and hospital asset management.
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During the coming years, demand from emerging regional markets such as Asia Pacific, Latin America, and Middle East and Africa (MEA) are anticipated to drive the growth of the healthcare outsourcing market. Some of the players involved in offering solutions or services related to healthcare IT outsourcing are Accenture Plc., IBM Corporation, Cognizant Technology Solutions, Tata Consultancy Services, Infosys Limited, Allscripts Healthcare Solutions, Inc., McKesson Corporation, L&T Infotech, HCL Technologies Ltd., and Wipro Limited.
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