Outsourcing is the buzzword in the healthcare industry in the U.S., the
rising cost of healthcare, less availability of man power, and quality worked
provided by the vendors, are some of the factors driving the outsourcing of
healthcare. There are three main segments of healthcare outsourcing covered in
the report i.e.; payer, provider, and pharmaceutical. The payer (healthcare
insurance companies), provider (hospitals) and the pharmaceutical companies are
looking at outsourcing as a viable option to be competitive in the business.
Healthcare reforms introduced by Obama government are also driving the
healthcare outsourcing market.
The global healthcare BPO market is growing at a healthy CAGR of 21.4%.
Pharmaceutical outsourcing accounts for the largest share of 64.3%, but will
grow at a CAGR of 14.6% from 2011 to 2016 since the market is saturated.
Healthcare provider outsourcing has the highest growth rate of 31.9% from 2011
to 2016 due to conversion from ICD-9 coding system to ICD-10 and ICD-10 coding
system to be implemented by October 2013 in the U.S. Healthcare payer
outsourcing market will also grow at about 30% in the forecast period.
U.S. is the largest source of outsourcing, followed by Europe. The most
preferred destination is India in payer and provider outsourcing, whereas on
shoring is the most preferred option for pharmaceutical outsourcing.
Philippines is an upcoming destination making its mark in payer and provider
outsourcing. India has advantages when compared to the other outsourcing
destinations such as has availability of high number of healthcare
professionals, affordable cost of living, large patient pool, and decreased
time and cost of recruitment.
The overall healthcare BPO market is highly fragmented and there are many
small players trying to take their share in the pie particularly in India and
China, where many entrepreneurs have entered the market to meet the growing
requirements. The major players in the payer and provider outsourcing market
are Accenture (Ireland), Medusind (U.S.), GeBBS Healthcare (U.S.), Omega
Healthcare (India), and Inventive (U.S.). The pharmaceutical outsourcing market
is captured by players such as Quintiles (U.S.), Covance (U.S.), PPD (U.S.),
Parexel (U.S.), Charles Rivers Laboratories (U.S.) and ICON (Ireland) in the
CRO space; while in the CMO market the major competitors are Lonza
(Switzerland), Catalent (U.S.), Boehringer Ingelheim (Germany), DSM Pharma
(U.S.), and Jubilant Life Sciences (India).
