The Global Healthcare
Business Process Outsourcing market is expected to continue its double digit
growth for five more years as the healthcare companies that include payer,
provider and pharmaceutical outsourcing companies have to adopt BPO to reduce
costs, focus on improving the core offerings rather than focus on business
processes that are support functions and by outsourcing these noncore business
processes they can take advantage of skills and expertise of low cost
professionals and also innovation provided by BPO service providers. According
to a report provided by MarketsandMarkets, a global market research and consulting
company, the global healthcare BPO market is estimated to be $92.3 billion in
2013 and is expected to grow at a CAGR of 10.8% from 2013 to 2018, to reach
$188.8 billion by 2018. The payer outsourcing segment is categorized into
claims processing, HR services, member services/customer care, and finance and
accounts segments. The provider outsourcing segment consists of medical
billing, medical coding, medical transcription, and finance and accounts
segments. The pharmaceutical outsourcing segment consists of clinical research
organizations (CROs), contract manufacturing organizations (CMOs), and
non-clinical services segments. Indian healthcare BPO providers targeting the
provider and payer market aggressively.
United States
Healthcare industry is the largest player in this segment and US Healthcare
companies outsource significant portion of their business processes to
countries like India (largest Healthcare BPO services provider), Philippines
and Latin American countries. Obamamcare, HIPPA compliance and ICD 10 coding
are the major regulatory changes that are driving the huge Healthcare BPO
market globally and Healthcare BPO service providers in India are expected to dominate
and acquire most of the contracts from US Healthcare companies. Claims processing, transcription services and medical
coding are some of the core business processes that are outsourced and demand
for these services is expected to increase significantly in the near future.
Indian Healthcare BPO service providers are well equipped, low cost providers
with all the infrastructure facilities needed and prepared for the rising
demand in this segment and are aggressively bidding for these contracts although
the Philippines based healthcare BPO providers are also looking to compete with
Indian players, they lack the skills and expertise that is mandatorily required
for the healthcare sector like doctors, nurses, medical coders,
transcriptionists, etc.
Pharmaceutical outsourcing is
also expected to continue its growth as the pharmaceutical companies are
struggling with raising costs in manufacturing, R&D, intense competition in
the industry and government regulations is forcing the companies to cut prices
of drugs. Not only the manufacturing of drugs is being outsourced but also
R&D is also being outsourced to countries like India. Contract
manufacturing, contract research and with patents expiring generic drug
manufacturing is a big business in India. Pharmaceutical companies across the
globe are being forced to innovate new drugs constantly to survive in the
market. Low cost, talent base in terms of specific skills and expertise,
available of infrastructure and government support are key to India’s success
in global Healthcare BPO market.
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