Outsourcing News for October 2014 | MicroSourcing
In the Philippines, companies are required to provide 13th month pay to employees, but are not mandated to give out Christmas bonuses. However, companies in certain industries allot funds for bonuses, but the amount differs depending on the organization.
Call center industry included in Bonus Report
Data from the 2014 Bonus Report done by Jobstreet.com Philippines indicate that the banking and finance industry gives the biggest regular bonuses. The next generous industry when it comes to bonuses is the business process outsourcing and call center industry, followed by manufacturing, food and beverage, and real estate.
The report revealed that these industries give up to 17th month in bonuses on top of the mandatory 13th month pay. These bonuses are given throughout the year.
Eileen Camrill-Go, Marketing Communications Manager of Jobstreet.com said if job seekers want to earn big, they should go for these industries.
For some employees, working in these industries is not always about the money. They stay or they choose to work in the company because of the management and stability.
The Employers Confederation of the Philippines said giving out salaries and bonuses should not just be scheduled during Christmas. Also, employers should prioritize the health, well-being, and future of the employees.
Challenges in Outsourcing Electronic Health Records
A study done by Frost & Sullivan and EHR Intelligence, in partnership with the College of Healthcare Information Management Executives, surveyed CIOs of medium and large hospitals from March to May. The study aimed to see what the CIOs feel about electronic health records (EHRs), and they soon found out that poor usability and search functions are the common issues that they have to deal with.
Survey participants said when it comes to the search functionality of EHRs, results are usually inaccurate and systems are slow. The study also found that this issue is caused by poor EHR usability and lack of user training and information about EHR.
When EHR clients have a hard time finding and reviewing data, they lose productivity not only in the clinical segment but also with end-users, making it risky for patients.
Since most EHRs are still working on improving their status and capabilities, this is anticipated to increase competition and encourage software developers to improve usability, and for service providers to enhance their capacities.
Healthcare information technology outsourcing market predicted to reach $50.4B
As the health insurance, healthcare systems, and pharmaceutical industries continue to drive the healthcare information technology (HCIT) outsourcing market, ResportsnReports.com recently shared their forecast for the global HCIT outsourcing market, predicting that the market will reach $50.4 billion by 2018 from $35 billion in 2013, with a CAGR of 7.6 percent.
Cost reduction, focus on core business, access to skilled and trained IT staff, shared risk, and innovation are some of the reasons that drive the growth of the outsourcing model in the healthcare segment.
The largest HCIT outsourcing market is North America (72 percent), and is anticipated to grow from $25 billion in 2013 to $36 billion by 2018. As for the CAGRs, Asia-Pacific takes first place with 8.1 percent, RoW is poised to post 7.8 percent, North America is third with 7.6 percent, and Europe with 7.2 percent.
Although outsourcing is a fairly new concept in the healthcare information technology market, it is considered as an innovative delivery model that helps improve efficiency in the management and administrative divisions of healthcare organizations. It is also expected to streamline processes with the implementation of reforms and the growing demand for quality care.
While large organizations are usually seen outsourcing healthcare IT processes, more and more mid-sized companies are seen outsourcing as well. Some prefer to outsource parts of their key application work such as EMR, CRM, and billing systems, while others opt to outsource the entire information management system.
The growth of the market is being fuelled by the increasing pressure to alleviate healthcare costs globally, the need to improve cash flow within organizations, better IT management systems or healthcare providers, payers, and life science division. Moreover, the HCIT outsourcing market is being driven by new coding guidelines brought on by the implementation of the ICD-10, rise of aging population, rising medical tourism in Asia, and the fact that organizations are having a hard time finding IT experts who will assist in integrating new solutions.
During the recent launch of the American Health Information Management Association’s (AHIMA) series of conferences in San Diego, the industry body focused on ICD-10. As part of their campaign to communicate their concerns, AHIMA sent out 7,000 letters to members of the Congress and their staff, and made over 10,000 phone calls pushing for the immediate implementation HealthData Management reforms.
AHIMA CEO Lynne Thomas Gordon said the healthcare industry was given enough time to prepare for the ICD-10 transition. In fact, a lot of healthcare systems, third party payors and physicians’ offices, and hospitals gladly prepared for the implementation deadline.
Moreover, the executive pointed out that industry partners have already invested so much that postponing it is out of the question. The implementation process of the ICD-10 taught them so much about advocacy and how to stand up for their beliefs and patients.
AHIMA working to prevent further congresionally-driven delays
Last March, AHIMA was surprised when H.R. 4302, the "Doc-Fix" bill which aims to push back the ICD-10 deadline to October 1, 2015, was served. Since then, AHIMA has worked diligently to prevent any further congressionally-driven delays.
Global Payroll Outsourcing Market Evolving
It has been observed that more and more SMEs and large organizations are considering payroll outsourcing as a key component of their strategy. Moreover, payroll experts are said to be evolving with the changing market dynamics.
Some of the processes covered by the payroll outsourcing segment include analysis of organizational data, computation of gross salaries, TDS, allowances, reimbursements of expenses, and filing of TDS.
Research and Markets’ latest report "Global Payroll Outsourcing Market 2014-2018" found that organizations are motivated to outsource because of increasing work pressure, low costs, increasing importance of strategic roles, and better quality of services from providers. The report also discovered that having an efficient payroll system means having proper record maintenance and a timely payroll process helps retain employees.
Another highlight is the analysts’ prediction that the global payroll outsourcing market will grow at a CAGR of 3.91 percent over the period of 2013-2018.
Cost is a key aspect that drives activity in the payroll outsourcing market. This is why buyers prefer to outsource because applications and tools are accessible when needed. Outsourcing is also scalable and cost-efficient.
The market is also being driven by accuracy and accountability of expert payroll providers. Experts are held accountable for any mistakes, and are also the ones that find solutions. For the clients, payroll outsourcing helps them focus on core processes.
According to Department of Science and Technology (DOST) Secretary Mario Montejo, the local economy’s revenues could reach $18 billion through the Information Technology-Business Processing Management (IT-BPM) operations in "Next Wave Cities".
In his speech at the International IT-BPM Summit in Makati, Montejo said the sector only had 525,000 full-time employees back in June 2010. It has recently surpassed the 1-million mark, which means the country is poised to reach the 1.3 million employee target by 2016. He added that the revenue target of $25 billion for 2016 is more achievable if the country is able to reach $18 billion by the end of 2014.
PH provinces included in "Next Wave Cities"
Montejo also pointed out that the DOST-ICT included areas such as Baguio, Iloilo, Sta. Rosa, and Bacolod in the "Next Wave Cities". These areas are being developed to house IT-BPM hubs, and eventually become part of the list of the top 100 IT-BPM hubs globally.
The org body also rolled out programs in various areas within the provinces in hopes of increasing the knowledge of residents about non-voice processes like animation, game development, healthcare outsourcing, and software development.
DOST Deputy Executive Director Monchito Ibrahim touched on key topics such as Rural Impact Sourcing in which individuals are equipped with basic knowledge and skills, as well as how to build start-up companies for ICT processes. He also pointed out that rural sourcing has 300,000 entrepreneurs involved in the IT-BPM segment.
Moreover, he pointed out that nursing graduates and board passers can look for opportunities in the healthcare outsourcing segment of the country. Careers include medical transcriptionists, medical secretaries, medical coders and billers, medical assistants, medical representatives, medical butlers, and clinical research associates.
Growth Seen in the Healthcare IT Outsourcing Market
Healthcare payers are being pushed to modify IT and operation strategies to comply with the latest regulatory reforms. Individual consumers are now more accountable for their health outcomes. This results to an increase in activity in the healthcare IT outsourcing (ITO) market. The global healthcare ITO market is predicted to expand at a CAGR of 12 percent from 2013 to 2020, reaching US$68 billion in 2020.
Much of the activity is seen within the mid-size providers segment and they are looking for affordable ways to comply with the regulatory demands as well as ground-breaking strategies that will assist them in changing to a business-to-consumer from business-to-business marketing and service models.
According to Jimit Arora, Vice-president at Everest Group, two things are affecting the shifts in the industry. There’s the transition to ICD-10 and the uncertainty of the reforms under the PPACA (Obamacare). Also, payers are looking into updating their customer acquisition strategies since consumers now have greater ownership, control, and responsibility for their health outcomes.