IT Application Outsourcing (AO) in the Healthcare Provider Industry - Service Provider Landscape

29 Jan 2013
by Jimit Arora

$2,999.00

INTRODUCTION

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

Healthcare companies are stepping up adoption of outsourced delivery and there is an uptick in demand for research and market intelligence on demand and supply trends in healthcare outsourcing. This is true across the three major market segments – payer, provider, and life sciences. The need is more pronounced for the vertical-specific application outsourcing (AO) function, 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 report, we analyze the capabilities of eight AO service providers specific to the global healthcare provider sector. These service providers are mapped on Everest Group PEAK Matrix, which is a composite index of a range of distinct metrics related to a service provider’s capability and market success.

Everest Group PEAK Matrix for large provider AO relationships 

Scope of the analysis

  • Industry: Healthcare provider (large health systems, standalone 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

Subvertical scope of provider AO contracts 

CONTENTS

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

  • Provider AO service provider landscape: Analysis of individual service provider capabilities in the provider AO space along the following dimensions:
    • Delivery capability:
      • Scale
      • Scope
      • Domain investments
      • Delivery footprint
    • Market success:
      • Transaction activity
  • Provider AO PEAK Matrix: Provider AO PEAK Matrix and analysis of PEAK clusters:
    • Mapping of provider AO service providers on Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix
    • Commentary on the capabilities of each service provider:
      • Delivery capability characteristics (scale, scope, domain investments, and delivery footprint)
      • Market success characteristics (transaction activity)
  • Implications for key stakeholders: Implications of identified provider AO service provider landscape characteristics for key stakeholders:
    • Implications for service providers
    • Implications for buyers
  • PEAK provider AO service provider profiles: Detailed profiles containing the following information for each of the eight service providers featuring on the provider AO PEAK Matrix:
    • Corporate summary and provider AO business overview
    • Detailed assessment of provider AO capabilities
    • Healthcare and provider AO domain investments
    • Provider AO transaction activity
    • Key offshore delivery locations for provider AO
 

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