Healthcare IT outsourcing market worth $96.9B by 2028

As per Zion Market Research study, The global Healthcare IT outsourcing market was worth around USD 66.1 billion in 2021 and is estimated to grow to about USD 96.9 billion by 2028, with a compound annual growth rate (CAGR) of approximately 6.60 percent over the forecast period. The report analyzes the Healthcare IT Outsourcing market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the healthcare IT outsourcing market.

Key industry insights & finding of the healthcare IT outsourcing market reports:

• As per the analysis shared by our research analyst, the healthcare IT outsourcing Market is expected to grow annually at a CAGR of around 6.60% (2022-2028).
• Through the primary research, it was established that the healthcare IT outsourcing Market was valued approximately USD 66.1 Billion in 2021 and is projected to reach to roughly USD 96.9 Billion by 2028.
• The astounding growth of the IT industry in Asia Pacific emerging economies such as China, India, Singapore, and Indonesia.
• Asia Pacific market for healthcare IT outsourcing’s growth prospects in the coming years.

Healthcare IT outsourcing market: Overview

In the field of healthcare information technology, outsourcing is becoming more popular. It’s a selection procedure in which a company chooses the most efficient third-party service provider to run its management and administrative unit. In the healthcare industry, outsourcing IT solutions has emerged as a cost-effective way to combat rising healthcare expenses while also meeting the growing need for high-quality care. The trend of healthcare IT outsourcing solutions has developed dramatically among large firms over the years, and it has also attracted mid-sized businesses. Only critical application services such as EMR, CRM, and billing system deployment are outsourced in certain circumstances, while in others, the full information management system is outsourced.

The expanding requirement to control cash flow in back-office administration and IT management systems of healthcare providers, payers, and the life science segment are fueling the growth of the healthcare IT outsourcing market. However, constraints such as the fragmented nature of the healthcare system and the HCIT outsourcing industry, the need for high investment in outsourcing IT solutions, rising data security concerns, and cultural and language hurdles are limiting the market’s growth.

Industry dynamics:
Healthcare IT outsourcing market: Growth dynamics
Drivers
During the projected period, the shortage of in-house IT expertise, lower operational costs, and improved quality of care and clinical results are the primary factors driving the growth of the healthcare IT outsourcing Market. Another factor driving the growth of the healthcare IT outsourcing Market during the forecast period is the increased need from healthcare sectors to integrate healthcare IT solutions into responsible healthcare organizations in order to improve quality of care and clinical outcomes.

Restraint
Factors such as the fragmented nature of the healthcare system and the HCIT outsourcing market, the need for high investment in outsourcing IT solutions, growing concern for data security, and cultural and language barriers all limit market growth.

Opportunities
The loss of confidentiality and the breakdown of administrative controls are expected to limit the growth of the healthcare IT outsourcing market. Furthermore, the expansion of the service portfolio and the use of ICD-10 standards for the diagnosis of several new diseases are expected to provide significant opportunities for the growth of the healthcare IT outsourcing market.

Challenges
Miscommunication is hampered by cultural differences and linguistic obstacles, which are impeding the expansion of the healthcare IT outsourcing market. The growth of standard IT platforms is limited by a fragmented end-user market, which is projected to stifle market growth in the coming years.

Recent developments
In July 2018, Southwest Mississippi Regional Medical Center has signed a long-term contract with Phoenix Health Systems, the leading independent provider of hospital IT outsourcing and consulting services, for IT department management as well as software and infrastructure maintenance.

Global healthcare IT outsourcing market: Segmentation
The global healthcare IT outsourcing market is segregated based on application and industry.

Based on application, the market is segmented into global provider outsourcing market (Electronic Health Records, Revenue Cycle Management System, Laboratory Information and Management System, Pharmacy Information and Management System and others), global payer outsourcing market (Customer Relationship Management System, Claim Processing Management System, Billing System, Fraud and Detection System and other), llobal life science outsourcing market (Enterprise Resource Planning, Clinical Trial Management System, Clinical Database Management System, Research and Development IT services and Others), global operational outsourcing market (Supply Chain Management, Business Process Management and Others) and global infrastructure outsourcing market (Infrastructure Management Services, Cloud Computing and Others). Due to significant growth, the payers HCIT outsourcing segment is expected to grow at a healthy CAGR during the forecast period “There have been no significant changes in the healthcare landscape. Most healthcare is becoming more expensive as a result of regulatory changes and rising costs “rms embraced new technologies and business models based on outsourcing.

By industry, the market is segmented into healthcare system, healthcare insurance industry, pharmaceutical industry, clinical research organization, biotechnology and others. healthcare insurance payers are streamlining their processes in an effort to reduce costs while providing high-quality patient care. The steady increase in the number of people purchasing insurance, as well as technological advancements, have paved the way for an increase in healthcare payer services.

List of key players of healthcare IT outsourcing market:

• Accenture Plc. (Ireland)
• Accretive Health Inc. (U.S.)
• Allscripts Healthcare Solutions Inc. (U.S.)
• Anthelio Healthcare Solutions (U.S.)
• Cognizant Technology Solutions (U.S.)
• Dell Inc. (U.S.)
• HCL Technologies (India)
• Hewlett-Packard Company (U.S.)
• International Business Machines (IBM) Corporation (U.S.)
• Infosys Limited (India)
• McKesson Corporation (U.S.)
• Siemens Healthcare (Germany)
• Tata Consultancy Services Ltd. (India)
• Wipro Ltd. (India)
• Xerox Corporation (U.S.)
• Epic System (U.S.)
• Computer Sciences Corporation (U.S.).

Zion Market Research