IT Outsourcing growth in Medical and Healthcare



IT OutsourcingDue to experiencing unprecedented transformation in the global healthcare industry, has lead to a surge in adoption of IT and business process outsourcing, according to Everest Group.  Spurred on by regulatory reforms, market consolidation and the emergence of next-generation digital avenues, acceptance of outsourcing in this space has been accelerated.


Overall healthcare ITO growth is being driven by regulatory reforms, market consolidation, evolving reimbursement models, and value chain digitsation. Everest Group estimates the net opportunity for ITO in life sciences will be U.S. $10.7 billion from 2013 to 2020.

Within in this opportunity roughly $3 billion will come from infrastructure outsourcing covering a variety of services including infrastructure modernisation (i.e. moving to a cloud-based infrastructure), mobility and device support, networks services, database services, and automation services such as interoperabilty.

Jimit Arora, vice president of Everest Group and co-author of the report, says that ITO adoption in medical devices has its own nuances that are different from pharmaceuticals and biotechnology. “One of the key differences that medical devices companies have had with regard to others in the life science space has been their handling of legacy technology,” Arora says. “Software, storage, and computing have always been a key component of [medical device companies’] product development and manufacturing systems.”

As drug approvals dip and competitive intensity rises, the manner in which firms adopt technology initiatives will be a key differentiator in determining their success in the marketplace. Analytics has emerged as the key lever to ramp up operational efficiency, pervading the life sciences value chain and demonstrating business value by providing real-time actionable insights.

To address this growing demand for on-demand research and market intelligence as well as supply trends in healthcare outsourcing across each subvertical—payer, provider, and life sciences—IT service providers are strengthening their capabilities.

According to the report, “Both analytics and infrastructure services require the life sciences industry to look at their sourcing portfolio and think of two primary imperatives: one, creating a strategic roadmap for the adoption of these services; and two, selecting the right service partner who can take them the whole distance.”

August 5, 2014

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