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 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 healthcare outsourcing across the three major market segments – payer, provider, and life sciences. Everest Group’s healthcare outsourcing research program addresses this market requirement by analyzing the outsourcing trends and service provider capabilities specific to ITO in the healthcare vertical.

The global healthcare ITO market (payer and provider combined) is expected to grow at 12% CAGR during 2014-2020, reaching US$68.3 billion in 2020. This will be fueled by factors such as regulatory requirements, payer-provider convergence, customer-centric care, and M&As/restructuring.

Factors impacting healthcare payer IT demand include multiple value chain (core functions) and horizontal elements (enabler functions), which have subthemes that directly align with the technology imperatives. Service provider organizations looking at succeeding in this market need to focus on building expertise in key service lines, developing/acquiring talent & skills demanded by payer, and aligning themselves with the evolving vendor engagement models.

In this annual report, we analyze the current trends and future outlook of large, multi-year ITO relationships in the payer market. The report also provides specific insights into enabling a go-to-market strategy for healthcare IT.

Contents

This report is structured across three key sections, covering analysis & projections, key demand drivers, and service provider selection imperatives.

• Payer IT spending: Analysis and projections
• Global healthcare ITO market overview
• Key spending categories
• Key demand categories
• Demand outlook
• Payer IT: Key demand drivers
• Payer mergers
• HIX disillusionment
• IT security
• Integrated operations

• Service provider selection: To outsource (offshore) or not?
• Service provider landscape: Evolution
• PEAK Matrix evaluations
• Service provider selection imperatives

Membership(s)

Healthcare & Life Sciences IT Outsourcing