Healthcare IT Outsourcing Market is Expected to Surge at a CAGR of 6.70% by the End of 2023
Healthcare IT outsourcing is reflected as one of the key practices for cost-saving. Primarily, on the back of numerous government protocols and initiatives for fulfilling the need for cost-efficient and high-quality healthcare services the healthcare IT outsourcing market is witnessing growth. In the healthcare sector, third-party IT outsourcing is growing and emerging as a trend for reducing the cost of healthcare facilities in low cost. The solutions under the tag of healthcare IT outsourcing can assist in the lowering prices of the healthcare. The aforementioned factors are boosting growth of the global healthcare IT outsourcing market. In addition, growing patient-centric approach from numerous healthcare providers and hospitals is encouraging adoption of the healthcare IT outsourcing which is propelling growth of the global healthcare IT outsourcing market.
The healthcare IT outsourcing market is expected to attain value of US$61.2 bn by the end of forecast period from 2015 to 2023, the analysts from TMR predicts. Also, due to growing demand for hospitals, the administration is expected to attain value of US$21.5 bn by the end of forecast period to 2023.
Growing Investment in Healthcare for Availing Advance Healthcare Facilities to Propel Growth of Market
Growing initial investment in healthcare for improving infrastructure is driving growth of the global healthcare IT outsourcing market. Growing need for ensuring patient satisfaction, effectiveness of treatments, and reduced costs are augmenting demand for IT outsourcing in healthcare. However, some of the trust issues due to lack of confidentiality and data breach are hampering demand for healthcare IT outsourcing and growth of the market. Besides, working process of the service providers has restricted due to numerous limitation on standardizing IT platforms due to high fragmentation of the healthcare sector. Also, language barriers in case of medical tourism and cultural differences are some of the problems restraining growth of the market. Nonetheless, growing patient pool coupled with rising need for advanced healthcare facilities is expected to offer lucrative opportunities for growth over the forecast period. Adoption of IT outsourcing is higher due to a substantial rise in the need for data management, billing, and asset management.
North America to Witness Growth with Robust Growth Rate
Based on the region, the global healthcare IT outsourcing market is fragmented in to North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Among these, North America accounted for dominating share of 40% in the market over the forecast period.
The North America is expected to attain value of US$21.2 bn by the end of 2023 by accounting leading share in the predicted years and expected to remain dominant over the forecast period due to high investment in the advancement of the healthcare from past decade. The market is expected to exhibit growth with a CAGR of 5.10% over the forecast period from 2015 to 2023. This growth is attributable to the numerous government initiatives for improving healthcare facilities from past few years. However, Asia Pacific is expanding with 10.50% over the forecast period.
Intense Competition among Key Players to Increase Substantially
The key players operating in the healthcare IT outsourcing market are facing intense competition. Some of the key players in the market are IBM Corp., Wipro Ltd., Cognizant Technology Solutions, Tata Consultancy Services Ltd., and Accenture Plc. Growing research and development (R&D) activities for product innovation are leading to intensify competition over the forecast period. Additionally, the key players are increasingly taking part in the strategies such as partnership, mergers, and acquisitions. Also, the large players are getting benefit from the growing research activities for product advancements in order to achieve this; they are increasingly adopting the strategies such as tactical alliances with small or local firms.