IBM’s February 2016 announced plan to acquire Truven is yet another in a recent spate of healthcare market mergers/acquisitions. The Truven purchase, IBM’s fourth major acquisition since establishing Watson Health in 2014, offers IBM access to data integration and analytics services and solutions.
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Wipro’s February 2016 acquisition of HealthPlan Services (HPS), an IT and Business-Process-as-a- Service (BPaaS) provider to U.S. payers and managed care organizations, is its fourth in less than a year, and the largest since 2007. The acquisition is part of Wipro’s effort to access non-linear revenue models as the global services landscape experiences ongoing churn.
Healthcare providers will drive growth, make up for historical lag in IT adoption in effort to trim expenses and enable innovation.
Facing tapering margins, regulatory reforms and evolving customer-centricity, the global healthcare industry will step up its investments in technology in an effort to trim expenses and enable innovation. Consequently, the global healthcare ITO market is expected to grow at 12 percent compound annual growth rate between 2014 and 2020, reaching US$68.3 billion in 2020, according to a new research published by Everest Group.
“The healthcare provider segment is expected to witness the highest percentage growth in ITO activity during 2014-2020, as compared to the life sciences and payer segments,” said Abhishek Singh, practice director at Everest Group. “Through new IT investments, healthcare providers will be making up for their historical lag in technology adoption and gearing up for various mandates such as payer-provider convergence, patient-centric care, evolving reimbursement models, and value-chain digitization.”
These results and other findings are explored in a recently published Everest Group report: “IT Outsourcing (ITO) in the Healthcare Provider Industry – Annual Report 2015: Building a Coherent Value Proposition.”
The full report provides an overview of the IT market for the healthcare provider industry, which includes large health systems, stand-alone hospitals and clinics, pharmacists, physician practices and diagnostic laboratories. Everest Group’s analysis includes trends in the healthcare industry, market trends and activity related to large contract relationships, the service provider landscape, the significance of technology opportunities and the outlook for 2016-2017.
***Download Complimentary 12-page Preview Report Here*** (Click on report title and click “login to view preview.” Registration is required to receive the free download.) This preview summarizes the report methodology, contents and key findings and offers additional resources for further study.
Other key findings: