Healthcare IT outsourcing will reach $50.4 billion worldwide by 2018 – up from $35 billion in 2013, according to a new report from M & M, a market research company. The firm says insurers, health systems and pharma companies are driving the market, utilizing outsourcing to "enhance their focus on core business, reduce operational and maintenance costs, increase access to IT skilled and trained staff (further reducing hiring and training costs), share risk and quickly implement new technologies.
"Factors propelling the growth of the market are the rising pressure to curb healthcare costs across the globe and the growing need to manage cash flow in back-office administration and IT management systems of healthcare provider, payers and the life science segment. Lack of in-house IT expertise, rise in demand for integrating solutions, growing pressure on healthcare providers to meet the 'Meaningful Criteria' set by the U.S. Federal Government, new ICD-10 conversion guidelines for coding, rise in aging population, and growing medical tourism in Asia are also likely to drive the HCIT outsourcing market.
However, factors such as the fragmented nature of the healthcare system and HCIT outsourcing market, requirement for high investment in outsourcing IT solutions, growing concern for data security and cultural and language barriers restrain the growth of the market."
The largest share of outsourcing is in North America, where the market is expected to reach $36 billion by 2018 from $25 billion in 2013 – a compound annual growth rate (CAGR) of 7.6 percent, but a slightly faster growth rate is projected in Asia-Pacific, which is projected to register a CAGR of 8.1 percent.
The report highlights major players in the EMR software category including Epic Systems, McKesson Corporation and Siemens Healthcare, and global consultancies such as Accenture.