North America Healthcare IT Outsourcing Market Size By Type (Electronic Health Records (EHR), Payer HCIT Outsourcing), By Application (Healthcare Provider System, Pharmaceutical), By Geographic Scope And Forecast

North America Healthcare IT Outsourcing Market Size And Forecast

North America Healthcare IT Outsourcing Market size was valued at USD 21,847.16 Million in 2023 and is projected to reach USD 38,838.27 Million by 2030, growing at a CAGR of 7.68% from 2024 to 2030.

Growing prevalence of chronic and lifestyle-based diseases are expected to drive growth in the healthcare information technology (it) are the factors driving the market growth. The North America report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

North America Healthcare IT Outsourcing Market Definition

Healthcare IT outsourcing is the process of hiring an outside company to help an organization with some of its IT and business requirements. This collaboration allows healthcare companies to outsource certain IT jobs, services, or projects to subject-matter experts, freeing them up to focus more on patient care and their core services. The outsourcing agreement can include a wide range of IT services, such as infrastructure management, cybersecurity, network maintenance, software development, and data management. By using the knowledge of external partners, outsourcing healthcare IT operations aims to improve patient care and services within the healthcare sector, reduce costs, improve technological integration, and promote operational performance.

A wide range of technology can be outsourced to third-party vendors by healthcare providers. These consist of setting up telemedicine and remote patient monitoring programs, using specialist medical billing and coding software, managing Electronic Health Record (EHR) systems, maintaining IT infrastructure (servers, networks, etc.), and protecting patient data with cybersecurity and data protection services. Healthcare IT outsourcing offers hospitals a range of benefits, starting with substantial cost savings by avoiding internal IT infrastructure expenses. Leveraging specialized external expertise ensures access to the latest technology, fostering innovation and saving resources for core healthcare functions.

Scalability enables adaptable IT resources aligned with evolving needs, while robust data security measures protect patient information and ensure compliance with regulations like HIPAA. Streamlined operations enhance efficiency, allowing staff to concentrate on patient care, thus improving overall healthcare services. Collaboration with external partners grants access to cutting-edge technologies, fostering innovation and enhancing patient outcomes while ensuring regulatory compliance and mitigating risks in the IT environment. Choosing the right healthcare IT outsourcing partner demands a strategic approach amid the wealth of available vendors.

Key considerations include evaluating the vendor’s healthcare expertise and successful track record, ensuring alignment in organizational culture and values for a productive partnership, and confirming scalability to accommodate evolving IT needs. Priority should be given to a partner well-versed in healthcare regulations like HIPAA, emphasizing data security and compliance. Proficiency in relevant technologies, strong communication channels, and robust support mechanisms are vital for seamless collaboration and issue resolution. Transparent pricing structures and seeking feedback from other healthcare organizations aid in making an informed decision, ensuring a cost-effective and harmonious partnership aligned with the business goals.

North America Healthcare IT Outsourcing Market Overview

The Healthcare IT Outsourcing market in North America encompasses the practice of delegating healthcare-related IT functions to external specialized service providers. It includes various services such as Electronic Health Records (EHR) management, IT infrastructure outsourcing, telemedicine support, and data security solutions tailored specifically for the healthcare industry.

The market is driven by rising demand for cost-effectiveness, operational efficiency, and sophisticated healthcare solutions. Growth in the market is mostly driven by factors like the use of AI, data analytics, and telemedicine solutions as well as the requirement for simplified administrative procedures. Data protection issues, complicated regulatory compliance (such as HIPAA), and guaranteeing a smooth interface with current healthcare systems are some of the threats facing the industry. To overcome these obstacles and resolve data security, compliance, and interoperability concerns, specific solutions are needed.

However, there are a lot of potential prospects for the market in emerging trends, especially the quick uptake of telemedicine and remote healthcare services brought on by the COVID-19 pandemic. Strong IT infrastructure, data security, and regulatory adherence are becoming increasingly important, opening doors for specialized outsourced companies. Additionally, the market’s competitive landscape sees continual evolution with the emergence of specialized HCITO providers offering expertise in niche areas such as cybersecurity, cloud computing, and personalized healthcare IT solutions. Partnerships and collaborations between HCITO providers and healthcare entities are fostering innovation and driving the market’s growth trajectory.

North America Healthcare IT Outsourcing MarketSegmentation Analysis

The North America Healthcare IT Outsourcing Market is segmented on the basis of Type, Application, and Geography.

North America Healthcare IT Outsourcing Market, By Type

• Electronic Health Records (EHR)
• Payer HCIT Outsourcing
• Operational HCIT Outsourcing
• Life Sciences HCIT Outsourcing
• IT Infrastructure Outsourcing
• Others

To Get a Summarized Market Report By Type-

Based on Type, The market is bifurcated into Electronic Health Records (EHR), Payer HCIT Outsourcing, Operational HCIT Outsourcing, Life Sciences HCIT Outsourcing, IT Infrastructure Outsourcing, and Others. IT Infrastructure Outsourcing accounted for the largest market share of 31.68% in 2022, with a market value of USD 6,921.82 Million and is projected to grow at the highest CAGR of 8.92% during the forecast period. Payer HCIT Outsourcing was the second-largest market in 2022, valued at USD 4,838.12 Million in 2022; it is projected to grow at a CAGR of 8.07%.

 North America Healthcare IT Outsourcing Market, By Application

• Healthcare Provider System
• Pharmaceutical
• Clinical Research Organization (CRO)
• Biotechnology
• Others

Based on Application, The market is bifurcated into Healthcare Provider System, Pharmaceutical, Clinical Research Organization (CRO), Biotechnology, and Others. Healthcare Provider System accounted for the largest market share of 34.24% in 2022, with a market value of USD 7,480.48 Million and is projected to grow at the highest CAGR of 8.45% during the forecast period. Pharmaceutical was the second-largest market in 2022, valued at USD 5,739.66 Million in 2022; it is projected to grow at a CAGR of 7.92%.

North America Healthcare IT Outsourcing Market, By Geography

• U.S.
• Canada
• Mexico

To Get a Summarized Market Report By Geography-

On the basis of Geography, The North America Healthcare IT Outsourcing Market is classified into different countries which includes U.S., Canada, and Mexico. US accounted for the largest market share of 85.02% in 2022, with a market value of USD 18,573.83 Million and is projected to grow at a CAGR of 8.12% during the forecast period. The HCIT Outsourcing Market in the U.S. is fueled by a relentless pursuit of digital health innovation, with organizations seeking outsourcing partners to stay at the forefront of technological advancements and improve patient outcomes. Canada was the second-largest market in 2022, valued at USD 1,929.45 Million in 2022; it is projected to grow at a CAGR of 5.55%. Stringent data protection regulations and a focus on cybersecurity drive the HCIT Outsourcing Market in Canada, compelling healthcare entities to partner with outsourcing providers for secure and compliant digital solutions.

Key Players

The “North America Healthcare IT Outsourcing Market” study report will provide a valuable insight with an emphasis on the market. The major players in the market are Cognizant, Atos SE, Veradigm LLC, R1 RCM, Accenture Plc., McKesson Corporation, Infosys Limited, IBM, TCS, and HCL Technologies.

Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players.

Key Developments

• In March 2023, IBM acquired Envizi, a healthcare AI startup specializing in medical imaging analytics. This acquisition expands IBM’s AI capabilities in healthcare and positions it to offer more comprehensive IT solutions to healthcare providers.
• In July 2023, TCS partners with healthcare enterprises across the world to enable their digital transformation journeys by leveraging its deep domain knowledge, investments in research and innovation, and digital expertise. It provides a full set of offerings including digital services, IT transformation and operations, and domain services to help healthcare companies introduce new products, enable ecosystem partnerships, and ensure the highest level of quality and compliance in operations.
• In July 2023, HCLTech, a leading technology company, today announced it has signed a definitive agreement to acquire 100% equity stake in ASAP Group, an automotive engineering services provider. The transaction is subject to relevant regulatory approvals and is expected to close in September 2023.

Report Scope

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