Market Size of Global Healthcare IT Outsourcing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| CAGR | 8.30 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Healthcare IT Outsourcing Market Analysis
The healthcare IT outsourcing market is expected to register a CAGR of nearly 8.3% during the forecast period (2022-2027).
During the Covid-19 pandemic, there was an increase in the demand for healthcare IT solutions to keep accurate patient information, link patient records, and ensure interoperability and cyber security. According to the study titled 'Generation of a Fast Healthcare Interoperability Resources (FHIR)-based Ontology for Federated Feasibility Queries in the Context of COVID-19: Feasibility Study' published in the JMIR publication in April 2022, the German Corona Consensus Dataset (GECCO) specified how data for COVID-19 patients will be standardized across German hospitals in Fast Healthcare Interoperability Resources (FHIR) profiles. The study demonstrated that FHIR profile automatic ontology generation was possible for COVID-19 patients. Thus COVID-19 had a significant impact on the growth of the market during the pandemic period.
The market is expected to grow due to the rising pressure to reduce healthcare costs, globally, and the increasing need to manage cash flow in back-office administration and IT management systems are the major factors driving the growth of the healthcare IT outsourcing market. The healthcare IT investment is estimated to grow faster due to strong government support in various countries for the healthcare industry, which has led to several technological innovations in recent years and is bound to foster the demand for healthcare IT solutions and increase the use of these services, to upgrade the healthcare infrastructure.
Additionally, in May 2020, Microsoft Corporation invested around USD 1.5 billion in a five-year investment plan in Italy that will deliver access to local cloud services and other facilities under the 'AmbizioneItalia' initiative. This is expected to increase the amount of digitalization and the need for cyber security and data integrity and analytics boosting the growth of the market during the forecast period.
Additionally, the increased patient-centric and value-based approaches in healthcare, shortage of in-house trained IT professionals, government focus on introducing IT in healthcare, and reduction in operational and healthcare costs are driving the market.
However, the threat to data security and confidentiality, lack of a standard platform, and shortcomings in performance, as compared to expectations, act as a restraining factor for the growth of the market.
Healthcare IT Outsourcing Industry Segmentation
As per the scope of the report, outsourcing refers to the set of economic practices used by firms to use other companies to perform certain stages of production processes. Healthcare companies are found outsourcing their services, such as manufacturing or research, to various vendors to provide quality healthcare facilities. The healthcare outsourcing industry has revolutionized business outsourcing processes due to reduction in costs, development of global delivery models, and provision of secured data access. The Healthcare IT Outsourcing market is segmented By Type (Payers HCIT Outsourcing (Hospital Information System, Laboratory Information System, Radiology Information System, Electronic Medical Records, and Other Types), Providers HCIT Outsourcing (Revenue Cycle Management System and Healthcare Analytics)), End User(Healthcare Provider System, Biopharmaceutical Industry, Clinical Research Organization and Other End Users), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, And South America). The market report also covers the estimated market sizes and trends of 17 countries across major regions globally. The report offers values (in USD million) for the above segments.
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Global Healthcare IT Outsourcing Market Size Summary
The healthcare IT outsourcing market is poised for significant growth, driven by the increasing demand for efficient healthcare solutions and the need to manage costs effectively. The COVID-19 pandemic accelerated the adoption of IT outsourcing in healthcare, highlighting the importance of interoperability, cybersecurity, and data management. The market is further bolstered by government support and technological innovations, which are enhancing healthcare infrastructure globally. The shift towards patient-centric and value-based care, coupled with a shortage of in-house IT professionals, is also contributing to the market's expansion. However, challenges such as data security concerns and the lack of standardized platforms may hinder growth.
North America currently leads the healthcare IT outsourcing market, with the United States at the forefront due to its advanced healthcare system and substantial investments in digital health solutions. The region's dominance is expected to continue, supported by strategic partnerships and technological advancements. Key players in the market, including IBM, Oracle, and Accenture, are actively expanding their offerings through collaborations and innovative solutions. The payer segment is experiencing robust growth as healthcare firms adopt outsourcing models to streamline processes and reduce costs. Overall, the market is characterized by intense competition, with both large and mid-size companies striving to enhance their market presence through product innovations and strategic alliances.
Global Healthcare IT Outsourcing Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Lack of Infrastructure or Funding Needed for Better and Secure IT Facilities
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1.2.2 Increased Patient-centric and Value-based Approaches in Healthcare
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1.2.3 Shortage of In-house, Trained IT Professionals
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1.2.4 Government Focus on Introducing IT in Healthcare
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1.3 Market Restraints
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1.3.1 Threat to Data Security and Confidentiality
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1.3.2 Lack of Standard Platform
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1.3.3 Shortcomings in Performance as Compared to Expectations
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD million)
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2.1 By Type
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2.1.1 Payers HCIT Outsourcing
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2.1.1.1 Hospital Information System (HIS)
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2.1.1.2 Laboratory Information System (LIS)
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2.1.1.3 Radiology Information System (RIS)
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2.1.1.4 Electronic Medical Records (EMR)
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2.1.1.5 Other Types
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2.1.2 Providers HCIT Outsourcing
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2.1.2.1 Revenue Cycle Management (RCM) System
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2.1.2.2 Healthcare Analytics
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2.2 By End User
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2.2.1 Healthcare Provider System
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2.2.2 Biopharmaceutical Industry
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2.2.3 Clinical Research Organization
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2.2.4 Other End Users
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Spain
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 South Korea
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2.3.3.6 Rest of Asia-Pacific
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2.3.4 Middle East and Africa
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2.3.4.1 GCC
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2.3.4.2 South Africa
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2.3.4.3 Rest of Middle East and Africa
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2.3.5 South America
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2.3.5.1 Brazil
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2.3.5.2 Argentina
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2.3.5.3 Rest of South America
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Global Healthcare IT Outsourcing Market Size FAQs
What is the current Global Healthcare IT Outsourcing Market size?
The Global Healthcare IT Outsourcing Market is projected to register a CAGR of 8.30% during the forecast period (2024-2029)
Who are the key players in Global Healthcare IT Outsourcing Market?
IBM, Accenture, Oracle, Omega Healthcare and Koninklijke Philips NV are the major companies operating in the Global Healthcare IT Outsourcing Market.
