IT Application Outsourcing (AO) in the Healthcare Payer Industry -€“ Annual Report 2012

23 Jul 2012
by Jimit Arora

$4,999.00

INTRODUCTION

The healthcare industry has witnessed a rapid increase in IT and business process outsourcing adoption in recent years. Regulatory reforms, consumerization of healthcare, market consolidation, and emergence of new technologies have accelerated outsourcing in the healthcare market. A number and variety of service providers have developed capabilities to cater to this growing market.

With healthcare companies stepping up adoption of outsourced delivery, there is an uptick in demand for research and market intelligence on demand and supply trends in healthcare outsourcing across the three major market segments – payer, provider, and life sciences. The need is more pronounced for the vertical-specific Applications Outsourcing (AO) services, where business challenges are driving greater adoption. Everest Group’s healthcare outsourcing research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to IT AO in the healthcare vertical.

In this annual report, we analyze current trends and the future outlook for large, multi-year AO relationships for the healthcare payer market. In addition, we identify the leading and upcoming service providers in this segment.

Healthcare ITO transaction volume 

Scope of the analysis

  • Industry: Healthcare payer (public health plans, private health plans)
  • Services: Large (TCV >US$25 million), multi-year (>three years), and annuity-based application outsourcing
  • Geography: Global
  • Sourcing model: Third-party AO transactions; excludes shared services or captives

Payer AO contract renewals 

CONTENTS

This report is structured across four key sections, each containing insights on the payer AO market, with a focus on large-sized contracts:

  • Healthcare IT outsourcing market overview: Analysis of the overall healthcare outsourcing market and transaction trends:
    • Market size and growth
    • Transaction trends for IT outsourcing in healthcare
    • Segment-level analysis of healthcare outsourcing transactions, including:
      • Business segments: healthcare payer, provider, and life sciences
      • Function segments: AO and Infrastructure Outsourcing
      • Geographic segments
  • Payer AO market overview: Analysis specific to the payer AO segment with a focus on large transactions:
    • Transactions activity and growth trends
    • Demand characteristics for payer AO services by geography, AO sub-functions, buyer type (public and private health plans), and buyer size
    • Delivery trends for payer AO services, including offshore leverage and global delivery locations
    • Renewal activity
  • Payer AO service provider landscape: Analysis of the service provider landscape for payer AO services:
    • Everest Group’s PEAK Matrix for payer AO segment
    • Highlights of service providers on the payer AO PEAK Matrix
    • Highlights of other notable payer AO service providers
  • Emerging themes and future outlook in payer AO: Analysis of emerging trends and their influence on the future of payer AO:
    • Factors altering the demand profile for healthcare payer AO services
    • Major technology investment themes in the payer sector
    • Implications for key stakeholders – buyers and service providers
 

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