by: Sarah Joson
Tuesday, August 13, 2013 | Outsourcing News |
At HeraldOnline.com, Research and Markets’ latest report called "Healthcare IT Outsourcing Market by Application & Industry - Global Forecast To 2018" covers several applications of the healthcare IT outsourcing industry. First off, with integration, of course there are the providers (HER, RCM, LIMS) and clients looking for solutions for Fraud Detection, Claims Management, Billing, and CRM. For the Life Science segment, there are ERP, CTIMS, and CDMS. Operational healthcare processes include SCM and BPM, whereas infrastructure consists of IMS and cloud computing.
The industries included are healthcare (including hospitals, diagnostic laboratories, and clinics), biotechnology, pharmaceutical, clinical research organizations, and health insurance.
The largest market seen for the HCIT outsourcing industry is North America (72%). It is projected to increase from $25 billion in 2013 to $36 billion by 2018.
However, Asia-Pacific and RoW are anticipated to post the highest CAGRs from 2013 to 2018. Asia-Pacific will lead with 8.1 percent, RoW with 7.8 percent, North America will be in third with 7.6 percent, and Europe is expected to register 7.2 percent.
The healthcare information technology market is slowly adopting outsourcing as a business tool to make processes more efficient and economical. It usually starts out with a screening process where clients get to choose the most feasible service provider by means of analyzing track record, among other factors. Some are seen outsourcing select processes while others subcontract larger operations. It has also drawn the attention of even mid-sized healthcare organizations as it is expected to supply the growing demand for a more affordable healthcare option.
Key growth factors for the market include the increasing desire to overturn the rising costs of healthcare and to supply more funds to key divisions of a healthcare organization such as back-office administration and IT management systems of healthcare service providers, payers, and the life science segment.
Other drivers found by the report are lack of healthcare IT experts locally, consolidation of processes, the standards set by the US Federal Government, growing population of the elderly community, and the increasing interest of the Asian market in medical tourism.
The report also cited some hurdles that stunt the market’s growth. These include the uneven divisions of the healthcare system and HCIT outsourcing market, costly investments for the first few stages, data security, as well as language and cultural barriers.
Overall, the global healthcare IT outsourcing market is anticipated to post a CAGR of 7.6 percent and reach $50.4 billion by 2018.