by: Sarah Joson
Thursday, August 29, 2013 | Outsourcing News |
The newest addition to MarketResearch.com’s line-up of helpful data, Healthcare IT Outsourcing Market - By Application, aims to provide the latest trends and projections in contracts and operations within the segments of providers (EHR, RCM, LIMS), payers (CRM, Claims Management, Fraud Detection, Billing), life science (ERP, CTMS, CDMS), operational (SCM, BPM), & infrastructure (IMS, Cloud Computing).
It was found that with the rising costs of healthcare and increasing demand of quality care, healthcare organizations are looking into solutions such as healthcare IT outsourcing to address these challenges. It is a suitable solution that is gaining traction in the healthcare information technology market where an organization selects the most suitable service provider that will perform various processes.
Initially, enterprise-type of organizations were the only ones making use of the business solution, but as years passed, mid-sized businesses followed suit. Some organizations were seen outsourcing the entire information management system, and some only outsourced several processes like CRM, EMR, and billing systems.
The report projected that the industry will experience a CAGR of 7.6% and reach $50.4 billion by 2018 from $35 billion in 2013. Moreover, the key drivers of the HCIT outsourcing sector are healthcare systems industry and pharmaceutical industry markets. Outsourcing is used to reduce operational and maintenance costs, enable organizations to access larger pools of IT and medical professionals, mitigate risks, and update technology used.
Other significant factors that are increasing the demand from the market are: the need to control the rising costs of healthcare worldwide and to improve the return on investments particularly in back office administration and IT management systems, life science division, and payers. Other trends that are expected to propel the HCIT outsourcing market are: the growing medical tourism in Asia, the new standards set by the US Federal Government, new ICD-10 conversion guidelines for coding, rise in aging population, etc.
Some of the HCIT market’s challenges are the endless security concerns, high capital outlays, fragmented nature of the healthcare system, as well as language and cultural barriers.