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 application outsourcing function, where business challenges are driving greater adoption. Everest Group’s healthcare outsourcing research program addresses this market requirement by analyzing the outsourcing trends and service provider capabilities specific to IT AO in the healthcare vertical.
In this annual report, we analyze the current trends and the future outlook for large, multi-year AO relationships for the life sciences market.
Scope of the analysis
Industry: Life sciences (pharmaceuticals, medical devices, biotechnology, and other life sciences1)
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
CONTENTS
This report is structured across three key sections, each containing insights on the life sciences 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
Life sciences AO market overview: Analysis specific to the life sciences AO segment with a focus on large transactions:
Transactions activity and growth trends
Demand characteristics for life sciences AO services by geography, AO subfunctions, life sciences segments (pharma, biotech etc.), and buyer size
Delivery trends for life sciences AO services, including offshore leverage and global delivery locations
Renewal activity
Introduction to the life sciences AO service provider landscape
Emerging themes driving the life sciences AO: Analysis of emerging trends and their influence on the future of life sciences AO:
Factors altering the demand profile for healthcare life sciences AO services
Major technology investment themes in the life sciences sector
Note: this report is from 2012. See our most recent R2R research report.
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