Global Healthcare IT Outsourcing Market

Global Healthcare IT Outsourcing Market

Global Healthcare IT Outsourcing Market reached US$ YY million in 2022 and is expected to reach US$ YY million by 2030, growing with a CAGR of YY % during the forecast period 2024-2031.

Healthcare IT outsourcing is the practice of delegating information technology functions and services in the healthcare industry to external service providers. Healthcare providers can concentrate on their core competencies, such as patient care and medical services, by outsourcing non-core IT functions. This allows them to allocate resources more effectively and improve overall operational efficiency.

Outsourcing allows healthcare organizations to scale IT services up or down based on their current needs. This flexibility is valuable in handling fluctuations in demand, implementing new technologies, or adapting to changes in the healthcare landscape. External service providers are often at the forefront of technological advancements. By outsourcing IT functions, healthcare organizations can leverage the latest technologies without the burden of developing and maintaining them in-house.

Market Dynamics: Drivers and Restraints

Increasing demand for remote patient monitoring solutions

Particularly in the wake of the COVID-19 epidemic, the move toward remote patient monitoring has increased demand for disposable medical sensors. Real-time data gathering and transmission is made possible by these sensors, which makes remote healthcare management easier. Continuous and real-time tracking of numerous physiological indicators, including blood pressure, heart rate, glucose levels, and other vital signs, is required for remote patient monitoring.

Thus rise of remote patient monitoring helps to accelerates the market growth. For instance, according to according to data published by the CDC in October 2022, approximately 37% of adults used telemedicine in the past 12 months. Additionally, according to an MD Revolution (Healthcare Provider Company) survey reports that 46% of healthcare c-suites expected to increase their remote patient management budget in 2024.

Another 46% expect to maintain their current level of spending. While only 7% of respondents plan to reduce spending on remote patient monitoring. The simplicity and ease of use associated with disposable sensors can enhance patient compliance with monitoring protocols. Thus above factors helps to boost the market growth.

Market Dynamics: Restraint

Security and privacy concerns

Healthcare organizations deal with sensitive patient information, including personal and medical records. A security breach leading to the unauthorized access or theft of this data can erode trust in outsourcing services. Clients may become reluctant to outsource critical IT functions if there are concerns about the safety and confidentiality of patient information.

Healthcare is subject to various regulations and compliance standards (e.g., HIPAA in the United States). A security breach could lead to non-compliance, resulting in legal consequences and financial penalties. Thus security threats restrain the market growth.

For instance, in 2023, more than 540 organizations and 112 million individuals were implicated in healthcare data breaches reported to the HHS Office for Civil Right(OCR), compared to 590 organizations and 48.6 million impacted individuals in 2022. HealthITSecurity has compiled a list of the top ten biggest healthcare data breaches (by number of individuals impacted) reported to OCR this year. HIPAA requires covered entities to report breaches impacting more than 500 individuals to HHS-OCR within 60 days of discovery.

Segment Analysis

The global healthcare IT outsourcing market is segmented based on service type, end-user and region.

The electronic health record segment from the service type segment accounted for approximately 29.17% of share

EHR systems require ongoing maintenance, updates, and technical support. Outsourcing providers can offer 24/7 support services, ensuring that healthcare organizations have continuous access to their EHR systems and addressing any issues promptly. Outsourcing EHR-related services can provide cost efficiencies for healthcare organizations. Instead of investing heavily in in-house IT infrastructure and personnel, organizations can leverage the expertise of outsourcing providers, potentially reducing overall IT costs.

The rising adoption of electronic health records helps to boost the segment growth. For instance, on May 06, 2023, Seneca Healthcare had launched a new electronic health record (EHR) system. The EHR system is designed to offer community a new, efficient patient portal and enhanced technology and security. The transition to “Cerner” EHR is a major milestone for Seneca Healthcare.

Additionally, in December 2023, Riverwood Healthcare Center launched new electronic health records (EHR) system. This transition will allow Riverwood patients to be more active in their health care journey through an increased ability to manage multiple aspects of their health care online through their MyChart account. Patients will have 24/7 access to schedule an appointment, access their health records, check test results, send medical messages, request medication re-fills, complete online questionnaires, use eCheck-in for appointments, and manage their personal information. Thus above factors helps to boost the segment growth.

Geographical Analysis

North America accounted for approximately 40.09% of the market share in 2022

Due to the growing use of electronic medical records (EMRs) in healthcare settings, the rising number of product launches, and rising technological advancements, the North American healthcare IT outsourcing market holds a significant market share in the global market.

For instance, the healthcare IT industry in North American countries is versatile and well-equipped due to the advanced adoption of information technology. Moreover, in May 2022, the Orléans Health Hub brought together three hospitals and six community-based service providers to enhance care and service coordination in a highly accessible, bilingual system reflective of the local region.

Additionally, in October 2023, MongoDB, Inchad launched MongoDB Atlas for Healthcare and MongoDB Atlas for Insurance, two new initiatives that help companies in these industries accelerate their pace of innovation and better serve end-users with modern, data-driven applications. Such collaborative approaches taken by Canadian organizations may contribute to the increasing number of people accessing health information online, propelling the growth of the market in the region.

COVID-19 Impact Analysis

During the COVID-19 pandemic, the healthcare IT outsourcing market has expanded significantly. Several factors drive the adoption of health information exchange during the pandemic, including a greater emphasis on the use of healthcare IT infrastructure for data transfer, ease of use, and cost reduction.

For example, since the commencement of the COVID-19 pandemic in March 2020, HealtHIE Nevada (US) has boosted patient data exchange by 36 percent. The requirement for EMR and EHR platforms to manage complex patient data has increased as patient loads have increased, driving the market growth during the pandemic.

The demand for electronic medical reports and health report solutions to manage sophisticated patient data has increased as patient volumes have increased. Hospitals increasingly focus on enhancing their capabilities by integrating multiple hospital systems with electronic health records (EHRs). To successfully help healthcare professionals manage COVID-19 patients, the healthcare information exchange market has connected their EHR platforms with telehealth solutions and improved their software solutions.

Market Segmentation

By Service Type
• Electronic Health Record (EHR)
• Health Information Management (HIM) Outsourcing
• Telehealth and mHealth Outsourcing
• Pharmaceutical IT Outsourcing
• Cybersecurity Outsourcing
• Consulting and Advisory Services
• Others

By End-User
• Hospitals and Clinics
• Health Insurance Companies
• Pharmaceutical Companies
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
• Middle East and Africa

Competitive Landscape

The major global players in the market include Allscripts, IBM, GE Healthcare, McKesson Corporation, HCL Technologies, Cognizant, Infosys Limited, Accenture, Cerner Corporation, Epic Systems Corporation and among others.

Key Developments
• In August 2022, Telehealth company Coviu had started offering its virtual care platform in the United States. From a global staff count of 50, it also plans to double its headcount over the next 12 months as it pursues international growth. Coviu's telehealth platform features secure video conferencing, an apps marketplace, remote patient monitoring, and new functionalities that allow group telehealth sessions and making phone consultations.
• In October 2023, Cedars-Sinai had launched a new artificial intelligence-driven mHealth application for patients in California that provides virtual care options for various clinical conditions. The Cedars-Sinai Connect app provides 24/7 virtual access to healthcare professionals for urgent care and same-day appointments for primary care.

Why Purchase the Report?
• To visualize the global healthcare IT outsourcing market segmentation based on service Type, end-user and region as well as understandkey commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of healthcare IT outsourcing market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global Healthcare IT Outsourcing market report would provide approximately 69 tables, 58 figures and 187 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies