Global Healthcare IT Outsourcing market is expected to grow at a CAGR of 7.6%, to reach $50.4 billion by 2018 from $35 billion in 2013 according to a report provided by MarketsandMarkets.

1. Analysis & Outlook
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
Global Healthcare IT Outsourcing market is expected to grow at a CAGR of 7.6%, to reach
$50.4 billion by 2018 from $35 billion in 2013 according to a report provided by
MarketsandMarkets, a global market research and consulting company. US Healthcare
companies accounts for the largest share - 72% - of this market and is expected to reach $36
billion by 2018 from $25 billion in 2013. Asia-Pacific and Rest of the World are expected to
register CAGRs of 8.1% and 7.8% (2013 to 2018) respectively, followed by North America
(7.6%), and Europe (7.2%). Health insurance companies, healthcare services providing
companies, healthcare systems and equipment companies are part of this market segment that
have to reduce their operational costs, administrative costs, focus on core processes, implement
information technology to run processes and also manage risks and develop new product
offerings. Particularly information technology has become a core component for running the
companies and offer product and services to customers and in some instances IT has become the
competitive advantage. There is a huge demand for Healthcare IT professionals both on the
medical and the process front and highly skilled professionals like actuaries, medical coders,
medical writers, biostatisticians, physiotherapists, nurses, general physicians, ayurvedic and
homeopathic practitioners are needed for healthcare IT industry to offer services like medical
coding, medical writing, bio-statics, healthcare and data analytics. Some of the healthcare
companies have completely outsourced their IT systems and some have outsourced only key
applications like electronic medical records, medical transcription, billing services, claims
processing, data analytics.
Availability of low cost highly skilled IT professionals, implementation of new technologies,
government regulations like Obama Care, ICD 10 coding and integration of different
technologies already being used with the new technologies like cloud computing, mobility and
analytics have presented a big opportunity for the Indian IT service vendors like TCS, Infosys,
Cognizant, Wipro, HCL Tech, etc. Cloud Computing is being widely adopted by healthcare
companies across the globe as there are significant cost benefits associated with this technology
as the companies need not invest heavily on hardware like servers, datacenters, etc. Cloud
computing is highly flexible, can be accessed from everywhere, uninterrupted service and also
helps to scale up the operations at a faster pace but there are certain disadvantages like data
security and reliability issues like downtime. Despite these disadvantages the need for reduction
in costs, operation times and efficient back office management is must for the success of
healthcare companies. Healthcare IT outsourcing vertical has been dominated by Cognizant
Technology Solutions, but other players in the Indian IT Services industry like TCS, Infosys,
Wipro, HCL Tech have built up significant capabilities and acquired the much needed technical
expertise and skills through mergers and acquisitions and also captured some big deals in this
segment. All the Indian vendors both the ITO and BPO vendors have exclusive focus on the
healthcare IT outsourcing segment and have even referred to this segment as a key growth driver
for the industry in terms of both revenues and profits.
Global Healthcare IT Outsourcing Market growth fuelled by Cloud Computing till 2018