State of the Healthcare ITO Market: 2015 - Decoding the Winds of Change

25 Mar 2015
by Abhishek Singh, Jimit Arora, Mayank Maria, Nitish Mittal

The healthcare landscape has witnessed significant turbulence in recent years on account of widespread regulatory changes and evolving business models. Consumers are assuming greater ownership, control, and responsibility of health outcomes. Consequently, the decision making is shifting to the individual. Consumption patterns have undergone a significant change owing to disruptive mobile computing, rapid adoption of social media, next-generation sales/engagement channels, and ‘‘anytime-anywhere’’ information access. As individual consumers (patients, physicians, etc.) get more empowered, healthcare is also transitioning into a principally patient-centric operating paradigm, with focus on cost, efficacy, and equity. Analogous to what Uber has done to transportation, in progressive (and controversial) ways, there is a fundamental transformation in healthcare, placing patients at the center. These changes are reflected in the way reimbursements are distributed (moving from volume-based to outcome-based) and the onset of personalized medicine therapies based on real-world evidences. These gamut of changes are also aided by various cultural and socio-economic forces.

Accountable care is shifting the spotlight to measuring and quantifying results. Behind these changes, we are witnessing an unprecedented proliferation of computing devices and connectivity, blurring the distinctions and easing access to information, across economic classes.

The disruptive shift – from a hospital-centric to a more customer-centric model – is driving significant healthcare investments in digital enablers of consumerization – social media, mobility, analytics, and cloud. At the same time, legacy issues (regulatory compliance) and new-age tenets (wearables, Internet of Things (IoT), and data security) continue to figure as pressing concerns for healthcare CIOs, compelling them to invest in revamping of systems, processes, and interfaces.

 

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