2014-01-28 19:29:01 - Healthcare IT Outsourcing Market: Global Forecast to 2018 - a new market research report on companiesandmarkets.com
The global HCIT outsourcing market (Healthcare IT) is estimated to have reached a value of around $35 billion at the start of 2013, and is forecast to hit a total of $50.4 billion by 2018. This suggests a CAGR growth rate of 7.6% between 2013 and 2018. The health insurance industry, healthcare systems industry, and pharmaceutical industry are driving the HCIT outsourcing market. These industries follow the HCIT outsourcing model to enhance their focus on core business, reduce operational and maintenance costs, increase access to IT skilled and trained staff (further reducing hiring and training costs), share risk, and quickly implement new technologies.
Outsourcing is an emerging phenomenon in the healthcare information technology market. It is a screening process wherein an
organization selects the most efficient third-party service provider to effectively operate its management and administrative unit. 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 organizations and has also attracted mid-sized organizations. 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.
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. Lack of in-house IT expertise, rise in demand for integrating solutions, growing pressure on healthcare providers to meet the "Meaningful Criteria" set by the U.S. Federal Government, new ICD-10 conversion guidelines for coding, rise in aging population, and growing medical tourism in Asia are also likely to drive the HCIT outsourcing market.
However, factors such as the fragmented nature of the healthcare system and HCIT outsourcing market, requirement for high investment in outsourcing IT solutions, growing concern for data security, and cultural and language barriers restrain the growth of the market.
North America accounts for the largest share - 72% - of the global HCIT outsourcing market and is expected to reach $36 billion by 2018 from $25 billion in 2013. 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%).
Major players in the market are Accenture Plc. (Ireland), Accretive Health, Inc. (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), Anthelio Healthcare Solutions (U.S.), Cognizant Technology Solutions (U.S.), Dell, Inc. (U.S.), HCL Technologies (India), Hewlett-Packard Company (U.S.), International Business Machines (IBM) Corporation (U.S.), Infosys Limited (India), McKesson Corporation (U.S.), Siemens Healthcare (Germany), Tata Consultancy Services Ltd. (India), Wipro Ltd. (India), Xerox Corporation (U.S.), Epic System (U.S.), and Computer Sciences Corporation (U.S.).
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