Information technology (IT) outsourcing and offshoring in the healthcare sector is going to accelerate amid regulatory and healthcare reforms, according to global management consulting firm Everest Group. Companies in the healthcare industry are being forced to reinvent their IT initiatives and processes due to consumers taking greater responsibility for health outcomes.
The report said that companies will continue to invest in outsourcing to modernize systems and streamline claims and remediation processing. Midsized healthcare firms are dominating the market and seeking partnerships with BPO or outsourcing providers to improve response to new regulations while reducing costs. Healthcare organizations are also switching their focus to consumers instead of other businesses.
Everest Group vice president Jimit Arora named two main forces are driving the change in health business models and IT requirements, the uncertainty of new reform policies (like Obamacare or PPACA and the shift to the ICD-10) and greater health consumerization.
Arora added that healthcare companies are looking to re-evaluate their existing processes, technology, infrastructure, and marketing strategies to better handle direct customer interaction. The global healthcare ITO market targets a 12 percent compound annual growth rate (CAGR) from 2013 to 2020 or $68 billion by 2020.