IT Outsourcing (ITO) in the Healthcare Provider Industry – Annual Report 2013: Entering the Big League of IT Adoption

17 Dec 2013
by Abhishek Singh, Jimit Arora, Nitish Mittal


The healthcare provider industry has seen of a lot of challenges lately, from the perspective of falling productivity, lower profits and the growing need for convergence with the payer model. It has become a no-brainer for healthcare provider firms, especially large hospital systems, to adopt analytics, EHR, and digitization to enable all or most of their strategic initiatives.

With healthcare provider companies increasingly maturing in their adoption of the outsourced delivery, there is an uptick in demand for research and market intelligence on demand and supply trends in outsourcing. The need is more pronounced for the value-chain-specific IT Outsourcing (ITO) services, where business challenges at functional levels are driving greater 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 provider value chain.

In this annual report, we analyze current trends and the future outlook for large, multi-year ITO relationships for the healthcare provider market. The report also provides specific insights into the need for value-chain-driven IT adoption.

ITO Adoption in the provider value chain


  • Industry: Healthcare provider (hospital systems, physician practices, laboratories, etc.)
  • Services: Annuity-based application and infrastructure outsourcing services
  • Geography: Global
  • Sourcing model: Third-party AO and IO transactions; excludes shared services or captives

Electronic health records


This report is structured across four key sections, each containing insights on the healthcare provider ITO market, with a focus on large-sized contracts:

  • Healthcare IT outsourcing market overview: Analysis of the overall healthcare outsourcing market and transaction trends:
    • Market size and growth
    • Transaction trends for IT outsourcing in healthcare
    • Segment-level analysis of healthcare outsourcing transactions, including:
      • Business segments: healthcare payer, provider, and life sciences
      • Function segments: Application Outsourcing (AO) and Infrastructure Outsourcing (IO)
      • Geographic segments
  • Healthcare provider ITO market overview: Analysis specific to the healthcare provider ITO segment with a focus on large transactions:
    • Transactions activity and growth trends
    • Demand characteristics for healthcare provider ITO services by geography, ITO subfunctions, buyer type (hospital systems, physician practices, etc.), and buyer size
    • Delivery trends for healthcare provider ITO services, including offshore leverage and global delivery locations
    • Renewal activity
  • Emerging themes and future outlook in healthcare provider ITO: Analysis of emerging trends and their influence on the future of healthcare provider ITO
    • Changing shape of the overall healthcare provider indus
    • Factors altering the demand profile for healthcare provider ITO services
    • Major technology investment themes in the healthcare provider sector
  • Outlook for 2013-2013: Analysis of the outlook and implications for ITO for the coming year
    • Outlook for overall healthcare IT outsourcing
    • Outlook for healthcare provider IT outsourcing

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