IT Outsourcing in the Healthcare Provider Industry – Service Provider Landscape with PEAK Matrix™ Assessment 2015

4 Dec 2015
by Abhishek Singh, Jimit Arora, Nitish Mittal



The healthcare industry is witnessing unprecedented churn and transformation, leading to a surge in adoption of IT and business process outsourcing. Driven by regulatory reforms, tenets of consumerization, market consolidation, and emergence of next-generation digital avenues, acceptance of outsourcing has accelerated in the space. The provider industry is coming to terms with the reforms mandate and tackling structural profitability issues. Therefore, market participants are actively looking at technology as a lever of operational efficiency and transformational change. As HIX, ACOs, payer-provider convergence, and the overall shift to value-based reimbursement get operationalized, providers need to chalk out an effective IT strategy.

With companies stepping up adoption of outsourced delivery, there is an uptick in demand for relevant research and market intelligence on demand and supply trends in healthcare outsourcing across each subvertical – payer, provider, and life sciences. The need is more pronounced for the vertical-specific IT outsourcing function, where business challenges 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 life sciences vertical.

In this report, we analyze the capabilities of 18 leading ITO service providers specific to the global healthcare provider sector. 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.

PEAK Matrix

Scope of the analysis

  • Industry: Healthcare providers (large health systems, stand-alone hospitals/clinics, pharmacists, physician practices, and diagnostic labs)
  • Services: Large (TCV > US$25 million), multi-year (>3 years), and annuity-based application outsourcing
  • Geography: Global
  • Sourcing model: Third-party ITO transactions; excludes shared services or Global In-house Centers (GICs)

Provider Revenue


This report is structured across three key sections, each containing insights into the healthcare provider ITO service provider landscape, with a specific focus on large-sized contracts:

  • Implications of identified healthcare provider ITO service provider landscape characteristics for key stakeholders:
    • Implications for service providers
    • Implications for buyers
  • Healthcare provider ITO service provider landscape: Analysis of individual service provider capabilities in the healthcare provider ITO space along the following dimensions:
    • Delivery capability:
      • Scale
      • Scope
    • Market success:
      • Transaction activity
  • 2015 Healthcare provider ITO PEAK Matrix and analysis of PEAK clusters:
    • Mapping of healthcare provider 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, and domain investments)
      • Market success characteristics (transaction activity)

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.


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