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 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 healthcare provider market.

The scope of the analysis includes:

• Industry: Healthcare provider (large health systems, stand-alone hospitals/clinics, pharmacists, physician practices, and diagnostic labs)
• 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 healthcare provider 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
• Healthcare provider AO market overview: Analysis specific to the healthcare provider AO segment with a focus on large transactions:
  • Transactions activity and growth trends
  • Demand characteristics for healthcare provider AO services by geography, AO subfunctions, healthcare provider segments (stand-alone hospitals, physician practices, etc.), and buyer size
  • Delivery trends for healthcare provider AO services, including offshore leverage and global delivery locations
  • Renewal activity
  • Introduction to the healthcare provider AO service provider landscape
• Emerging themes driving the healthcare provider AO: Analysis of emerging trends and their influence on the future of healthcare provider AO:
  • Factors altering the demand profile for healthcare provider AO services
  • Major technology investment themes in the healthcare provider sector