Healthcare BPO Market Research Report -Forecast till 2023

Healthcare BPO Market Research Report -Forecast till 2023

ID: MRFR/HC/0827-CRR | September, 2018 | Region: Global | 85 pages | Cooked Research Reports

Global Healthcare BPO Market Research Report Information, by Services (Pharmaceutical Services, Non-Clinical Services, Payer Services, Claim Management, Member Management, Provider Services, Medical Billing, and Medical Coding) – Global Forecast Till 2023


Market Snapshot


The global healthcare BPO market was valued at more than USD 199,500 Mn in 2017 and is projected to witness a steady growth in 2018 and beyond. The emergence of healthcare BPO has provided a massive boost to the global health sector. It has helped in diluting many of the tedious and complicated administrative and payment processes. Healthcare companies are inclining towards BPO services also due to their cost benefits. Outsourcing continues to be a major trend in the healthcare BPO industry. The industry is witnessing a tremendous boom in counties such as India and China where the overall cost of setting up BPO centres is relatively lower than in advanced economies. Healthcare BPO services are not only looked up for improving financial performance but also to enrich resource allocation, which subsequently serves the paramount purpose of increasing healthcare efficiency. 


Report Abstract


This MRFR report offers a six-year forecast (2017-2023) for the global healthcare BPO market. The market analysis has been conducted after considering all the important parameters. The primary objective of the report is to deliver an objective outlook on the prospects of healthcare BPO industry for the next couple years. It also covers several pharmaceutical services, payer services, and provider services under healthcare BPO that are gaining considerable momentum under, which include research and development, non-clinical services, manufacturing, claim management, member management, provider management, care management and product development & business acquisition, medical billing, medical coding, medical transcription and finance & accounts.


Companies Covered


IBM, Sykes, Cognizant, Accenture, INFOSYS and HCL


The report offers insights into the leading market players and presents an assessment of their current market position. Company information with regards to revenue, segmental share, geographical income, SWOT, growth strategies, new product launch, M&A activities, and the latest R&D initiatives is also available in the report.


Research Methodology


Market Research Future (MRFR) employs a comprehensive research methodology for objective analysis of market and industries, which allows an in-depth view of current market trends, challenges and opportunities. The qualitative and quantitative assessment is carried out through primary and secondary research processes to garner hard-hitting market insights. Primary data mining is carried out by conducting surveys and first-hand interviews with company executives and decision makers across the value chain. Secondary research process validates the authenticity of primary data through inputs from highly credible sources to provide a thorough analysis of historical and current market trends. Top-down and bottom-up approaches are utilized to extrapolate data, which is then verified using data triangulation method.  


Other Description



  • Market Denomination- USD Million

  • Base year- 2016

  • Forecast Period- 2017–2023


For the scope of the research, MRFR’s report offers a comprehensive segmental analysis of the global market for healthcare BPO


Services



  • Pharmaceutical services

  • Payer services

  • Provider services


Region



  • Americas

    • North America

    • S.

    • Canada

    • South America



  • Europe

    • Western Europe

    • Germany

    • France

    • K

    • Italy

    • Spain

    • Rest of the Western Europe

    • Eastern Europe



  • Asia-Pacific

    • Japan

    • China

    • India

    • Australia

    • Republic of Korea

    • Rest of Asia-Pacific



  • Middle East & Africa

    • Middle East

    • United Arab Emirates

    • Saudi Arabia

    • Oman

    • Kuwait

    • Qatar

    • Rest of Middle East & Africa




Intended Audience



  • Medical Devices Companies

  • Research and Development (R&D) Companies

  • Government Research Institutes

  • Academic Institutes and Universities

The global healthcare BPO market growth is deemed to be impressive at 12.3% CAGR over the forecast period of 2017-2023, growing from USD 199,533.8 Million in 2017 to USD 449623.8 Million by the end of 2023, proclaims Market Research Future (MRFR) in a minutely analyzed research report.


The global healthcare BPO market derives much of its growth from the increasing incidences of errors in medical billing and errors in patient medical record which has led to the adoption of BPO services by healthcare organizations. A princely sum of dollars is lost each year due to poor billing practices which has a direct impact on healthcare organizations' bottom line. Outsourcing in the healthcare sector has picked up in the past few years to minimize critical mistakes and ensure smooth operational performance. Additionally, healthcare institutions save a king's ransom by outsourcing tasks, which, otherwise would require hiring of in-house employees. Healthcare BPO professional are highly skilled and help in the reduction of errors.


Imperious need to curb mounting healthcare costs has forced healthcare organizations to outsource non-core processes to third party service providers; it helps to save 30-60% of costs. Moreover, outsourcing has become a compulsion as there has been an ample push from healthcare organizations to focus on core business activities in the healthcare ecosystem. It reduces costs involved in staff training, hiring and human resource management.


Service quality of BPO can act as a deterrent to the growth of the global healthcare BPO market. In the developing regions, service quality is a significant issue. For instance, in 2015, British Telecom announced its plan to shut down its call centers in India due to poor customer service. Healthcare providers are more attracted towards outsourcing from well-known brands which makes it difficult for other developing companies to expand.


Despite the existing roadblocks in the developing regions, healthcare BPO market is apprehended to experience enormous growth opportunities in the developing countries. As BPO service providers in developing regions continue to acquire greater capabilities in the healthcare vertical, the global healthcare BPO market is likely to see robust growth in the coming years.


The global healthcare BPO market has been segmented on the basis of services which comprises of Pharmaceutical services, payer services, and provider services. The pharmaceutical segment has been further segmented into Research and Development, Manufacturing, and Non-clinical Services. Similarly, the payer services segment has been further segmented into Claim management, Member management, Provider management, Care management, and Product development & business acquisition. The provider services segment has been further segmented into Medical Billing, Medical Coding, Medical Transcription, and Finance & Accounts.


Pharmaceutical services commanded the largest market share in 2016 and was valued at USD 125,849.8 million in 2016 and are expected to reach USD 329,000.3 million by 2023. The payer services segment is projected to be the fastest growing segment and capture a CAGR of 12.4% over the forecast period.


Regional Analysis


The Americas represent the largest market for healthcare BPO. In 2016, the Americas accounted for the largest share of 57.3 % of the global healthcare BPO market. The Americas market has been segmented into two regions, namely, North America and South America. North America has been further segmented into the US and Canada. A robust economy and massive development in the healthcare domain support the growth of the market in the Americas. Moreover, high healthcare expenditure, the concentration of leading players and the high adoption rate of advanced technology in the region drives the growth of the market. Broadening support from the government for the development of the healthcare sector is a significant driver. Furthermore, the demand for niche services and increasing cost savings will boost the market growth over the corresponding period.


Europe accounts for the second largest share of the healthcare BPO market and has been segmented into Western Europe and Eastern Europe. Western Europe holds the maximum share of the Europe market, Germany, U.K., and France being the key contributors to the market. The OCED reported the healthcare expenditure in Germany to be EUR 321 Billion in 2014 and the the healthcare expenditure in France to be EUR 237 Billion, while the healthcare expenditure of the U.K. in 2014 was EUR 223 Billion. Increasing healthcare revenue is the major driving factor for the market growth. Additionally, increasing government support and funding for the development of the facilities have added fuel to the growth of the market.


Asia Pacific is expected to continue on a robust growth trajectory over the forecast period. The market in Asia Pacific comprises Japan, China, India, Australia, the Republic of Korea, and the Rest of Asia Pacific. Rapidly advancing healthcare sector, high health care spending, developing healthcare industries & organizations and improving technology are factors igniting pockets of growth in the Asia Pacific market. The market in China is projected to capture a CAGR of 8.8% over the forecast period.


Competitive Tracking


The notable players operating in the global healthcare BPO market include Sykes, IBM, Accenture, HCL, Cognizant, Infosys, Quintiles, and others. The major six companies, namely, Sykes, IBM, Accenture, HCL, Cognizant, and Infosys account for more than 11.12% share of the global healthcare BPO market.

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TABLE OF CONTENTS

2.1 Scope of Study 11

2.2 Research Objective 11

2.3 Assumptions & Limitations 11

2.3.1 Assumptions 11

2.3.2 Limitations 11

2.4 Market Structure 12

3.1 Primary Research 14

3.2 Secondary Research 15

3.3 Market Size Estimation 15

3.3.1 Market Share analysis 16

3.4 Market Pricing Approach 17

4.1 Introduction 18

4.2 Drivers 19

4.2.1 Minimizing Critical Mistakes 19

4.2.2 Increase in cost saving 20

4.2.3 Increase in recovery audits 21

4.2.4 Demand for niche services 22

4.3 Restrains 23

4.3.1 Doubts over service quality 23

4.4 Opportunities 24

4.5 Trends 24

4.5.1 Adoption of the BPO services in healthcare sector 24

4.6 Macroeconomic Indicators 25

5.1 Value Chain Analysis 26

5.1.1 Product development & business acquisition (PDBA) 26

5.1.2 Member management 26

5.1.3 Provider management 26

5.1.4 Care management 27

5.1.5 Claims management 27


5.2 Porters Five Forces Model 28

5.2.1 Bargaining power of suppliers 28

5.2.2 Bargaining power of buyers 29

5.2.3 Threat of new entrants 29

5.2.4 Threat of substitutes 29

5.2.5 Intensity of rivalry 29

5.3 Pricing Analysis 30

5.4 Investment Opportunity Analysis 31

6.1 Introduction 32

6.2 Pharmaceutical Service 34

6.3 Payer Services 35

6.4 Provider Services 36

7.1 Introduction 37

7.2 Americas 39

7.2.1 North America 41

7.2.2 South America 44

7.3 Europe 45

7.3.1 Western Europe 48

7.3.2 Eastern Europe 55

7.4 Asia Pacific 57

7.4.1 Japan 59

7.4.2 China 61

7.4.3 India 62

7.4.4 Republic of Korea 63

7.4.5 Australia 64

7.4.6 Rest of Asia-Pacific 65

7.5 The Middle East & Africa 66

7.5.1 The Middle East 68

7.5.2 Africa 69

8.1 Introduction 70

8.2 Company Share Analysis 70

8.3 Key Developments 72

9.1 Sykes 73

9.1.1 Company Overview 73

9.1.2 Products Offering 74

9.1.3 Key Developments 74

9.1.4 SWOT Analysis 74

9.1.5 Key Strategy 74

9.2 IBM 75

9.2.1 Company Overview 75

9.2.2 Products Offering 76

9.2.3 Key Developments 76

9.2.4 SWOT Analysis 76

9.2.5 Key Strategy 76

9.3 ACCENTURE 77

9.3.1 Company Overview 77

9.3.2 Products Offering 78

9.3.3 Key Developments 78

9.3.4 Swot Analysis 78

9.3.5 Key strategy 79

9.4 Cognizant 80

9.4.1 Company Overview 80

9.4.2 Products Offering 81

9.4.3 Key Developments 81

9.4.4 SWOT Analysis 81

9.4.5 Key Strategy 81

9.5 QUINTILES 82

9.5.1 Company Overview 82

9.5.2 Products Offering 83

9.5.3 Key Developments 83

9.5.4 SWOT Analysis 83

9.5.5 Key Strategy 83

9.6 HCL 84

9.6.1 Company Overview 84

9.6.2 Products Offerings 85

9.6.3 Key Developments 85

9.6.4 SWOT Analysis 85

9.6.5 Key Strategy 85

9.7 INFOSYS 86

9.7.1 Company Overview 86

9.7.2 Products Offerings 87

9.7.3 Key Developments 87

9.7.4 SWOT Analysis 87

9.7.5 Key Strategy 87

10.1 Key Findings 88

10.1.1 CEO’s Viewpoint 88

10.1.2 Unmet Needs 88

10.1.3 Key Companies to Watch 88

11.1 Discussion Blue Print 89

11.2 References 90


TABLE 1 PRIMARY INTERVIEWS 16

TABLE 2 GLOBAL HEALTHCARE BPO MARKET, BY SERVICES 2014-2023 (USD MILLION) 33

TABLE 3 GLOBAL HEALTHCARE BPO MARKET, BY PHARMACEUTICAL SERVICES 2014-2023 (USD MILLION) 34

TABLE 4 GLOBAL HEALTHCARE BPO MARKET, BY PAYER SERVICES 2014-2023 (USD MILLION) 35

TABLE 5 GLOBAL HEALTHCARE BPO MARKET, BY PROVIDER SERVICES 2014-2023 (USD MILLION) 36

TABLE 6 GLOBAL HEALTHCARE BPO MARKET, BY REGION, 2014-2023 (USD MILLION) 38

TABLE 7 AMERICAS HEALTHCARE BPO MARKET, BY REGION, 2014-2023 (USD MILLION) 40

TABLE 8 NORTH AMERICA HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 41

TABLE 9 U.S. HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 42

TABLE 10 CANADA HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 43

TABLE 11 SOUTH AMERICA HEALTHCARE BPO MARKET, BY PRODUCT TYPES , 2014-2023 (USD MILLION) 44

TABLE 12 EUROPE HEALTHCARE BPO MARKET, BY REGION, 2014-2023 (USD MILLION) 46

TABLE 13 EUROPE HEALTHCARE BPO MARKET, BY SERVICES , 2014-2023 (USD MILLION) 47

TABLE 14 WESTERN EUROPE HEALTHCARE BPO MARKET, BY SERVICES , 2014-2023 (USD MILLION) 48

TABLE 15 GERMANY HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 49

TABLE 16 FRANCE HEALTHCARE BPO MARKET, BY SERVICES , 2014-2023 (USD MILLION) 50

TABLE 17 U.K. HEALTHCARE BPO MARKET, BY SERVICES , 2014-2023 (USD MILLION) 51

TABLE 18 ITALY HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 52

TABLE 19 SPAIN HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 53

TABLE 20 REST OF WESTERN EUROPE HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 54

TABLE 21 EASTERN EUROPE HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 55

TABLE 22 ASIA-PACIFIC HEALTHCARE BPO MARKET, BY COUNTRY, 2014-2023 (USD MILLION) 57

TABLE 23 ASIA-PACIFIC HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 58

TABLE 24 JAPAN HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 59

TABLE 25 CHINA HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 61

TABLE 26 INDIA HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 62

TABLE 27 REPUBLIC OF KOREA HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 63

TABLE 28 AUSTRALIA HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 64

TABLE 29 REST OF ASIA-PACIFIC HEALTHCARE BPO MARKET, BY SERVICE, 2014-2023 (USD MILLION) 65

TABLE 30 THE MIDDLE EAST & AFRICA HEALTHCARE BPO MARKET, BY REGION, 2014-2023 (USD MILLION) 66

TABLE 31 THE MIDDLE EAST & AFRICA HEALTHCARE BPO MARKET, BY SERVICE , 2014-2023 (USD MILLION) 67

TABLE 32 THE MIDDLE EAST HEALTHCARE BPO MARKET, BY SERVICES, 2014-2023 (USD MILLION) 68

TABLE 33 AFRICA HEALTHCARE BPO MARKET, BY PRODUCT TYPES, 2014-2023 (USD MILLION) 69

FIGURE 1 GLOBAL HEALTHCARE BPO MARKET SHARE, BY SERVICES, 2016 (%) 9

FIGURE 2 GLOBAL HEALTHCARE BPO MARKET SHARE, BY REGION, 2016 (%) 10

FIGURE 3 GLOBAL HEALTHCARE BPO MARKET: MARKET STRUCTURE 12

FIGURE 4 RESEARCH PROCESS 13

FIGURE 5 HEALTHCARE BPO MARKET: VALUE CHAIN ANALYSIS 26

FIGURE 6 PORTERS FIVE FORCES MODEL : HEALTHCARE BPO MARKET 28

FIGURE 7 GLOBAL HEALTHCARE BPO MARKET, BY SERVICES, 2016 & 2023 (USD MILLION) 32

FIGURE 8 GLOBAL HEALTHCARE BPO MARKET, BY REGION, 2016 & 2023 (USD MILLION) 37

FIGURE 9 AMERICAS HEALTHCARE BPO MARKET SHARE, BY REGION, 2016 (%) 39

FIGURE 10 EUROPE HEALTHCARE BPO MARKET SHARE, BY REGION, 2016 (%) 45

FIGURE 11 ASIA-PACIFIC HEALTHCARE BPO MARKET SHARE, BY REGION, 2016 (%) 57

FIGURE 12 THE MIDDLE EAST & AFRICA HEALTHCARE BPO MARKET SHARE, BY REGION, 2016 (%) 66

FIGURE 13 GLOBAL HEALTHCARE BPO COMPANY SHARE ANALYSIS, 2016 (%) 71

Global Healthcare BPO Market: Competitive Landscape


The global healthcare BPO market is currently dominated by Sykes, IBM, Accenture, HCL, Cognizant, Infosys, Quintiles, and others. Through extensive research, it is found out that market players have adopted the strategy of improving the services through acquisitions and collaborations. Many leading players are concentrated in the Americas owing to a well-established market and high healthcare expenditures. These players have expanded their market in other regions as well. Furthermore, companies such as IBM, Accenture, and Cognizant are well-established in the European market. The major six companies, namely, Sykes, IBM, Accenture, HCL, Cognizant, and Infosys account for more than 11.12% share of the global healthcare BPO market.


IBM is one of the leading players in the market with a huge global presence and over 430,000 employees. The company has a significant presence in the Americas, Europe, and Asia-Pacific and its working units are present in over one dozen countries. IBM and Cognizant are two major players operating in the healthcare BPO market. IBM is one of the world's largest employers. In 2012, IBM was valued at USD 75.5 billion and Interbrand awarded IBM as the second-best brand worldwide. Owing to innovative software and product development and strong brand identity, the company has acquired the top position in the global healthcare BPO market. Additionally, the company has been witnessing a rapid growth as a result of increasing acquisitions and collaborations.


Cognizant is also one of the leading providers of BPO services along with information technology, information security, and consulting. In 2014, Cognizant acquired TriZetto healthcare IT solutions and services for USD 2700 million. This acquisition improved the integrated healthcare management services of the company and is also expected to help in the growth of the market over the review period.


The global healthcare BPO market is led by IBM with 4.80% of the global market share owing to a well-developed market and worldwide presence, which is expected to witness a rise during the assessment period. Further Accenture with 2.79% and Cognizant with 2.26% accounted for the second and third largest positions, respectively, in the global healthcare BPO market. Furthermore, the rest 90.15% of the market is accounted by other companies in the global healthcare BPO market.