Global health IT outsourcing market to reach $50.4 billion by 2018

Tools

The U.S. and Canada lead in the global healthcare IT outsourcing market, with North America accounting for the largest share at 72 percent, according to a new report from RnRMarketResearch.com. The global market is expected to reach $50.4 billion by 2018 from $35 billion in 2013, with health insurance, healthcare systems and the pharmaceutical industry driving growth.

All three rely on outsourcing to reduce operational and maintenance costs, increase access to IT staff and quickly implement new technologies. Lack of in-house IT expertise, increasing need to integrate disparate systems, and growing pressure to meet Meaningful Use criteria and implement ICD-10 are among the factors at play, according to the report.

However, factors such as the fragmented nature of the business, growing concern for data security and cultural and language barriers restrain growth of the market.

IT hiring remains difficult in healthcare. In a recently published HIMSS Analytics survey, hospital respondents said they outsourced at least one IT function rather than hiring in-house. Ninety-three percent said they plan to outsource a function within the next year.

Health information exchanges, too, are relying on outsourcing for positions when they don't have the required skills in-house, HIMSS and the American Health Information Management Association (AHIMA) reported.

Despite pressure to measure and analyze data for quality reporting, a report published this week found budget woes and a skills gap holding back many healthcare organizations from fully harnessing the potential for analytics.

To learn more:
- read the announcement about the report

Related Articles:
Health IT hiring remains a challenge
Outsourcing trend: Nonprofit hospitals contract with for-profits for medical services
Tech skills a big part of HIE hiring needs
Lack of funding, skills hamper hamper health analytics efforts