Introduction

The healthcare landscape has been subject to significant turbulence on account of a gamut of factors including escalating costs, widespread regulatory amendments, changing business models, and evolution of the patient-centric paradigm (with mobile computing, social media platforms, and “anytime-anywhere” information access). This combination of disruptive and legacy factors has driven healthcare firms to adopt new technologies, while also revamping their existing systems, processes, and interfaces.

As the technology mandate for Healthcare and Life Sciences (HLS) enterprises evolves, so do their relationships with IT service providers. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in HLS IT across the three major market segments – payer, provider, and life sciences. Everest Group’s HLS IT research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to HLS IT.

In this report, we analyze the capabilities of 14 IT service providers specific to digital IT services for the global payer industry. These service providers are mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success.

Scope of the analysis

• Industry: Healthcare payers (public and private health plans)
• Services: Digital IT services
• Geography: Global (though with a slight skew towards the U.S. payer market, given dominant market activity)
• Sourcing model: Third-party ITO transactions; excludes shared services or Global In-house Centers (GICs)

Contents

This report is structured across three key sections, each capturing insights into the payer digital IT service provider landscape:

• Digital in the context of healthcare payers:
• Defining “digital”
• Drivers of digitization in payers
• Buyers’ view of digital investments: Priorities and investment horizon
• Payer digital IT PEAK Matrix 2015 and analysis of the PEAK Matrix clusters:
• Mapping of payer digital IT service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix
• Commentary on the specific characteristics of the PEAK Matrix clusters (Leaders, Major Contenders, and Aspirants)
• Analysis of the capabilities of each service provider:
• Delivery capability characteristics (scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
• Market success characteristics (transaction activity)
• Implications of the market dynamics and identified payer digital IT service provider landscape characteristics for key stakeholders:
• Implications for service providers
• Implications for buyers

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