Global Healthcare IT Outsourcing Market Insights Forecasts to 2033

• The Global Healthcare IT Outsourcing Market Size was estimated at USD 48.3 Billion in 2023
• The Market Size is expected to grow at a CAGR of around 6.23% from 2023 to 2033
• The Worldwide Healthcare IT Outsourcing Market Size is Expected to Reach USD 88.4 Billion by 2033
• Asia-Pacific is Expected to Grow the fastest during the forecast period.

The Healthcare IT Outsourcing Market Size is anticipated to reach USD 88.4 Billion by 2033, Growing at a CAGR of 6.23% from 2023 to 2033.

Market Overview

The healthcare IT outsourcing market would refer to a global industry, providing external services and solutions with IT to healthcare organizations such as clinics, hospitals, or research institutions on the management of their technological as well as operation needs. This market encompasses a broad range of services, including EHR management, RCM, data analytics & business intelligence, IT infrastructure services, telemedicine, and mobile health. Healthcare IT outsourcing is the process of delegating some of the IT functions to external service providers to increase efficiency, reduce costs, and allow healthcare organizations to focus on their core functions. It covers services ranging from the management of electronic health records to telemedicine, data analytics, and management of IT infrastructures. Also, the need for combining huge amounts of data to produce comprehensive and trustworthy patient records is essential for providing reliable information since a variety of medical equipment and diagnostic instruments are used in healthcare systems, and there is an emerging need to connect all of these systems to help healthcare practitioners respond quickly at different care delivery points.

Report Coverage

This research report categorizes the market for the healthcare IT outsourcing market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the healthcare IT outsourcing market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the healthcare IT outsourcing market.

Driving Factors

Another aspect fueling market growth is that there is more increase in ACOs or responsible care organizations, which automatically increases the need for EHRs and EMRs. With advancements in technology, these solutions play an important role in improving remote monitoring and patient compliance, and subsequently, their quality of life. Therefore, the growing demand for remote monitoring solutions and remote devices is expected to drive the growth of global healthcare information technology (IT) integration solution providers in the coming years.

Restraining Factors

Major challenges in implementing and using health informatics solutions include the heterogeneity of health information systems. The healthcare industry is highly regulated with strict laws and regulations. In the United States, for instance, there is HIPAA, and companies may spend money on software and solutions to help them navigate and comply with occupational health and safety regulations on respiratory hazards.

Market Segmentation

The healthcare IT outsourcing market share is classified into type and end-use.

• The payer HCIT outsourcing segment accounted for the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period.

Based on the type, the healthcare IT outsourcing market is categorized as provider HCIT outsourcing, electronic health record (EHR), payer HCIT outsourcing, operational HCIT outsourcing, life sciences HCIT outsourcing, and IT infrastructure outsourcing. Among these, the payer HCIT outsourcing segment accounted for the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period. This is due to radical changes in the healthcare landscape. Additionally, growth is contributed to by the surge in the uptake of healthcare IT solutions and the rise in patient-centric and value-based approaches in healthcare. In this scenario, with more individuals being insured, the processes could be managed better.

• The healthcare provider system segment accounted for the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period.

Based on the end use, the healthcare IT outsourcing market is categorized as healthcare provider systems, pharmaceutical, biotechnology, clinical research organization (CRO), and health insurance. Among these, the healthcare provider system segment accounted for the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period. This is due to the increasing trend of outsourcing in the healthcare industry. Most of the companies outsource their healthcare services to save their costs and use their resources for other purposes. In addition, with the increase in the total number of patients and the growth of government programs related to quality health care, the demand for IT outsourcing is on the higher end.

Regional Segment Analysis of the healthcare IT outsourcing market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the healthcare IT outsourcing market over the predicted timeframe.

North America is anticipated to hold the largest share of the healthcare IT outsourcing market over the forecast period. The upcoming markets are likely to gain more shares in this area, mainly due to the good establishment of their healthcare industry as well as favorable reimbursement systems. The United States, therefore occupies the majority market share in the North American region since the adoption level of digital health care is comparatively higher and because of the increased investment made by companies in the nation. In addition to this, a rise in spending on healthcare services and growing governmental plans for accessible care in developed areas.

Asia Pacific is expected to grow at the fastest CAGR growth in the healthcare IT outsourcing market during the forecast period. This is due to the growing adoption of health IT solutions and positive government moves in the region. In this regard, it is observed that in July 2022, GE Healthcare introduced what it termed the first 5G Innovation Lab in India. 5G can bring disruptive changes to the patient care continuum because of enormous bandwidth, extremely high data speed, low latency, and very high reliability in connectivity.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the healthcare IT outsourcing market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Oracle Corporation
• Siemens Healthineers
• Infosys Limited
• Dell Technologies Inc.
• Philips Healthcare
• Accenture
• Cerner
• Tata Consultancy Services (TCS)
• Mckesson Corporation
• International Business Machines Corporation (IBM)
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In August 2022, Cognizant announced that it has been selected by AXA UK & Ireland as a technology companion to help merge, modernize, and manage part of its IT operations. AXA UK & Ireland is altering its technology ecosystem to create a more digitally-enabled, modern, and agile IT environment that is data-rich, secure, and supportable with lower overall cost. Cognizant will provide integrated IT services spanning service desk support and maintenance, end-user computing, application development and maintenance, cloud operations, and IT infrastructure management. This has helped the company to expand its business

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the healthcare IT outsourcing market based on the below-mentioned segments: 

Global Healthcare IT Outsourcing Market, By Type

• Provider HCIT outsourcing
• Electronic Health Record (EHR)
• Payer HCIT Outsourcing
• Operational HCIT Outsourcing
• Life Sciences HCIT Outsourcing
• IT Infrastructure Outsourcing
• Others

Global Healthcare IT Outsourcing Market, By End-use

• Healthcare Provider System
• Pharmaceutical
• Biotechnology
• Clinical Research Organization (CRO)
• Health Insurance

Global Healthcare IT Outsourcing Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa