by: Sarah Joson
Monday, October 27, 2014 | Outsourcing News |
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.