Healthcare IT Outsourcing Market Size, Share, Growth Report 2032

Healthcare IT Outsourcing Market: Industry Prospective

The global Healthcare IT Outsourcing market was worth around USD 66.1 billion in 2021 and is estimated to grow to about USD 96.9 billion by 2028, with a compound annual growth rate (CAGR) of approximately 6.60 percent over the forecast period. The report analyzes the Healthcare IT Outsourcing market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Healthcare IT Outsourcing market.

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Healthcare IT Outsourcing Market: Overview

In the field of healthcare information technology, outsourcing is becoming more popular. It's a selection procedure in which a company chooses the most efficient third-party service provider to run its management and administrative unit. In the healthcare industry, outsourcing IT solutions has emerged as a cost-effective way to combat rising healthcare expenses while also meeting the growing need for high-quality care. The trend of healthcare IT outsourcing solutions has developed dramatically among large firms over the years, and it has also attracted mid-sized businesses. Only critical application services such as EMR, CRM, and billing system deployment are outsourced in certain circumstances, while in others, the full information management system is outsourced.

The expanding requirement to control cash flow in back-office administration and IT management systems of healthcare providers, payers, and the life science segment are fueling the growth of the healthcare IT outsourcing market. However, constraints such as the fragmented nature of the healthcare system and the HCIT outsourcing industry, the need for high investment in outsourcing IT solutions, rising data security concerns, and cultural and language hurdles are limiting the market's growth.

COVID-19 Impact:

As technology progresses, IT outsourcing is becoming increasingly common. COVID-19 has heightened the demand for healthcare IT outsourcing. Despite the fact that the government and payers have adopted laws to help alleviate COVID-19's sales cycle challenges, physician practices, healthcare networks, and medical facilities continue to face financial difficulties. As a result, revenue cycle management outsourcing is gaining traction. In addition to freeing up resources, outsourcing medical billing during COVID-19 provided financial assistance. Hospitals must spend a predetermined amount regardless of worker performance to manage in-house medical coding and billing. Hospitals, on the other hand, must pay a monthly part of net collections during the pandemic since they outsource.

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Healthcare IT Outsourcing Market: Growth Drivers

Drivers:

During the projected period, the shortage of in-house IT expertise, lower operational costs, and improved quality of care and clinical results are the primary factors driving the growth of the Healthcare IT Outsourcing Market. Another factor driving the growth of the Healthcare IT Outsourcing Market during the forecast period is the increased need from healthcare sectors to integrate healthcare IT solutions into responsible healthcare organizations in order to improve quality of care and clinical outcomes.

Restraint:  

Factors such as the fragmented nature of the healthcare system and the HCIT outsourcing market, the need for high investment in outsourcing IT solutions, growing concern for data security, and cultural and language barriers all limit market growth.

Opportunities:

The loss of confidentiality and the breakdown of administrative controls are expected to limit the growth of the Healthcare IT Outsourcing Market. Furthermore, the expansion of the service portfolio and the use of ICD-10 standards for the diagnosis of several new diseases are expected to provide significant opportunities for the growth of the Healthcare IT Outsourcing Market.

Challenges:

Miscommunication is hampered by cultural differences and linguistic obstacles, which are impeding the expansion of the Healthcare IT Outsourcing Market. The growth of standard IT platforms is limited by a fragmented end-user market, which is projected to stifle market growth in the coming years.

Global Healthcare IT Outsourcing Market: Segmentation

The global Healthcare IT Outsourcing market is segregated based on application and industry.

Based on application, the market is segmented into Global Provider Outsourcing Market (Electronic Health Records, Revenue Cycle Management System, Laboratory Information and Management System, Pharmacy Information and Management System an Others), Global Payer Outsourcing Market (Customer Relationship Management System, Claim Processing Management System, Billing System, Fraud and Detection System and Other), Global Life Science Outsourcing Market (Enterprise Resource Planning, Clinical Trial Management System, Clinical Database Management System, Research and Development IT services and Others), Global Operational Outsourcing Market (Supply Chain Management, Business Process Management and Others) and Global Infrastructure Outsourcing Market (Infrastructure Management Services, Cloud Computing and Others). Due to significant growth, the payers HCIT outsourcing segment is expected to grow at a healthy CAGR during the forecast period "There have been no significant changes in the healthcare landscape. Most healthcare is becoming more expensive as a result of regulatory changes and rising costs "rms embraced new technologies and business models based on outsourcing.

By industry, the market is segmented into Healthcare System, Healthcare Insurance Industry, Pharmaceutical Industry, Clinical Research Organization, Biotechnology and Others. Healthcare insurance payers are streamlining their processes in an effort to reduce costs while providing high-quality patient care. The steady increase in the number of people purchasing insurance, as well as technological advancements, have paved the way for an increase in healthcare payer services.

Report Scope:

Recent Developments

• In July 2018, Southwest Mississippi Regional Medical Center has signed a long-term contract with Phoenix Health Systems, the leading independent provider of hospital IT outsourcing and consulting services, for IT department management as well as software and infrastructure maintenance.

Healthcare IT Outsourcing Market: Regional Landscape

North America currently dominates the anastomosis device market in terms of market share and revenue, and this dominance is expected to remain during the projected period. This is due to the presence of superior information technology. Asia-Pacific, on the other hand, is expected to increase at the fastest rate throughout the projection period, owing to rising government healthcare spending and rising personal disposable income.

The astounding growth of the IT industry in Asia Pacific emerging economies such as China, India, Singapore, and Indonesia is expected to open up new opportunities for stakeholders in the healthcare IT outsourcing market. Furthermore, significantly lower labour costs, manpower, and highly skilled IT resources will boost the Asia Pacific market for healthcare IT outsourcing's growth prospects in the coming years.

Healthcare IT Outsourcing Market: Competitive Landscape

Some of the main competitors dominating the global Healthcare IT Outsourcing market include – 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.).

Global Healthcare IT Outsourcing market is segmented as follows:

By Application

• Global Provider Outsourcing Market
  • Electronic Health Records
  • Revenue Cycle Management System
  • Laboratory Information and Management System
  • Pharmacy Information and Management System
  • Others
• Global Payer Outsourcing Market
  • Customer Relationship Management System
  • Claim Processing Management System
  • Billing System
  • Fraud and Detection System
  • Other
• Global Life Science Outsourcing Market
  • Enterprise Resource Planning
  • Clinical Trial Management System
  • Clinical Database Management System
  • Research and Development IT services
  • Others
• Global Operational Outsourcing Market
  • Supply Chain Management
  • Business Process Management
  • Others
• Global Infrastructure Outsourcing Market
  • Infrastructure Management Services
  • Cloud Computing
  • Others

By Industry

• Healthcare System
• Healthcare Insurance Industry
• Pharmaceutical Industry
• Clinical Research Organization
• Biotechnology
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa