Over the last decade, third-party IT outsourcing has emerged as the biggest trend in Healthcare IT. With initiatives and regulations by various governments emphasizing on making high-quality yet cost-efficient healthcare services available to people, the outsourcing of IT solutions in the healthcare industry has emerged as one of the best cost-saving practices.

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“The assistance these outsourcing solutions provide in curbing the expenses on in-house healthcare it solutions has driven their demand exponentially and it does not look declining anytime soon,” says an analyst at TMR. Riding high on this surging demand, the global market for healthcare IT outsourcing indicates towards a thriving future. However, the increasing cases of data breach and the loss of confidentiality are likely to create serious trust issues between healthcare providers and IT outsourcing solution vendors in the near future.

Additionally, the high fragmentation in the medical and healthcare industry is projected to obstruct the execution of standard IT platforms across this market, limiting the operations of service providers. The cultural differences and language barriers are also anticipated to restrict the market’s growth in the coming years.

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In spite of these hindrances, the worldwide market for healthcare IT outsourcing will report a tremendous rise in the coming years. According to TMR’s estimations, the opportunity in this market that stood at US$34 bn in 2014 and is likely to increase at a CAGR of 6.70% during the period from 2015 to 2023 and to touch a projected valuation of US$61.2 bn by the end of the forecast period.

North America emerged as the leader in 2014 with a share of more than 40% in the global market and is likely to remain dominant over the next few years. Asia Pacific, however, is projected to record the fastest rise at a CAGR of 10.50% between 2015 and 2023 among all the regional healthcare IT outsourcing markets.

Healthcare providers have surfaced as the leading end user of healthcare IT outsourcing across the world. However, the demand from healthcare payers is anticipated to exceed that of the former over the forecast period.

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Among healthcare IT outsourcing applications, healthcare administration enjoys the highest demand at present. However, due to the increasing patient pool and the growing demand for quality care services, globally, the care management application is expected to witness the fastest growth rate in the coming years.

The significant increase in the number of healthcare IT outsourcing market service providers has deepened the competition among them in recent years. Vendors are focusing on developing their own analytical platforms for improved patient data management and quality patient care systems in order to offer customized solutions to healthcare payers as well as providers, globally, notes Transparency Market Research in a new study.

Looking forward, unmet healthcare needs in emerging economies of Asia Pacific and the Middle East and Africa are expected to offer an opportunity-rich market to participants. As these regions boast of ample availability of skilled manpower, entering into strategic alliances with local companies will help major players to seize better shares in this market.

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IBM, Accenture, TCS, Cognizant, and Wipro are the leading healthcare IT outsourcing services providers with a presence across the world.

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