IT Outsourcing in Healthcare Payer Industry - Service Provider Landscape with PEAK Matrix™ Assessment and Profile Compendium 2013
The healthcare industry witnessed a rapid increase in the IT and business process outsourcing adoption in recent years. Regulatory reforms, consumerization of healthcare, market consolidation, Health Insurance Exchanges (HIX), and emergence of new technologies accelerated outsourcing in the healthcare market. In order to cater to this growing market segment, a number of service providers have developed capabilities.
As healthcare companies are stepping up the adoption of outsourced delivery, there is an uptick in demand for research and market intelligence on demand and supply trends in healthcare outsourcing across the three major market segments – payer, provider, and life sciences. The need is more pronounced for the vertical-specific IT outsourcing (ITO) function, where business challenges are driving greater technology adoption. Everest Group’s healthcare outsourcing research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to ITO in the healthcare vertical.
In this report, we analyze the capabilities of 15+ ITO service providers specific to the global healthcare payer sector. Twelve of these service providers are mapped on the Everest Group PEAK Matrix™, which is a composite index of a range of distinct metrics related to a service provider’s capability and market success.
Scope of the analysis
Industry: Healthcare payers (public health plans and private health plans)
Services: Large (TCV > US$25 million), multi-year (>3 years), and annuity-based application outsourcing
Sourcing model: Third-party ITO transactions; excludes shared services or captives
This report is structured across four key sections, each containing insights on the payer ITO service provider landscape, with a specific focus on large-sized contracts:
Payer ITO service provider landscape: Analysis of individual service provider capabilities in the payer ITO space along the following dimensions:
Payer ITO PEAK Matrix: Payer ITO PEAK Matrix and analysis of PEAK clusters:
Mapping of payer ITO service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix
Commentary on the capabilities of each service provider:
Delivery capability characteristics (scale, scope, domain investments, and delivery footprint)