Unlocking Growth Potential: Assessing Market Opportunities in the U.S. Healthcare Provider Sector

Executive Summary

To determine the viability of investing in building a practice focused on the U.S. healthcare provider marketplace, a leading outsourcing service provider engaged Everest Group to profile the segment with particular emphasis on identifying market trends it could exploit into solid presence-building opportunities. Everest Group’s objective, fact-based assessment of the market’s potential, and what the provider needed to do to become a competitive service provider in the space, enabled it to course correct to establish a robust, sustainable presence with meaningful market share.

The Client’s Challenge

A leading IT outsourcing (ITO) service provider had built a strong presence in most industries, but had not yet gained traction in the U.S. healthcare provider marketplace. Given the current media attention on this market segment, the client wanted to more fully understand the potential value of this sector, and whether it could effectively leverage recent market dynamics to establish a meaningful presence as an ITO provider in this challenged and challenging industry.

Insight to Action

As the engagement required a multidisciplinary approach, Everest Group brought together experts from its Service Provider Solutions Practice, its Healthcare Industry Practice, and the Everest Research Institute. This team of subject matter experts addressed a variety of interrelated dimensions:

• The healthcare provider market size, buyer and supplier composition, market and competitive dynamics, and recent and upcoming external (government financial and regulatory) impacts
• The competitive landscape and key success factors
• Market discontinuities and other entry points
• Implications for healthcare provider outsourcing services
• The client’s capabilities relevant to the marketplace
• Potential approaches to build a solid presence in the space

Everest Group leveraged the Everest Research Institute for market, transaction, and competitive data to profile recent market growth trends, and to frame future growth drivers and industry sizing, both as a whole and by key segments. Everest Group’s Healthcare Industry Practice then applied its sector-specific insights to ensure the research findings reflected on-the-ground realities of recent governmental and industry factors, (e.g., ARRA and HITECH acts), what drives healthcare providers to consider outsourcing, offshoring’s potential, and what buyers actually look for in potential outsourcing providers.

Everest Group helped the client quickly cut through the hype and common misperceptions in the marketplace, and illuminated both essentially closed and underexploited market entry points. Further, through detailed data reviews and collaborative discussions, Everest Group clarified for the client its relevant, existing capabilities, and what it needed to do to become a competitor in the space. Finally, Everest Group highlighted market discontinuities that might enable big-bang market entry options, as well as general trends suited to more incremental approaches. 

Impact

Through its deep healthcare sector expertise and fact-based analyses, Everest Group paved a path for the client to gain a more powerful market presence. Everest Group detailed a range of actions the client could undertake, including acquisitions, shared investments, and more market-effective sales approaches. The client quickly made course corrections, incorporating the findings and recommendations into its strategic planning.