Healthcare Analytics Outsourcing Market

Global Healthcare Analytics Outsourcing Market is valued at USD xx Billion in 2022 and it is expected to reach USD xx Billion by 2029 with a CAGR of xx% over the forecast period.

Global Healthcare Analytics Outsourcing Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2022-2028: The market will expand due to the increasing adoption of digital healthcare technologies and electronic health records, and rising focus on population health management and value-based care.

Scope of Global Healthcare Analytics Outsourcing Market Report-

Healthcare analytics outsourcing is a process of outsourcing data analytics and insights generation services to third-party service providers. These providers specialize in data mining, predictive modeling, and other data analysis techniques that can help healthcare organizations make better decisions and improve patient outcomes.

The healthcare analytics outsourcing market has emerged in recent years as healthcare organizations have become increasingly data-driven. With the rise of electronic health records and other digital healthcare technologies, healthcare organizations now have access to vast amounts of data that can be used to improve patient care and operational efficiency. However, many healthcare organizations lack the expertise and resources to analyze this data effectively, leading to the growth of the healthcare analytics outsourcing market.

The applications of healthcare analytics outsourcing are numerous. Some of the common use cases include clinical analytics, financial analytics, operational analytics, and population health analytics. The end-users of healthcare analytics outsourcing services are healthcare providers, payers, pharmaceutical companies, and biotech companies.

COVID-19 Impact on the Healthcare Analytics Outsourcing market:

The COVID-19 pandemic has had both positive and negative impacts on the healthcare analytics outsourcing market. On the positive side, the pandemic has accelerated the adoption of digital healthcare technologies and increased the demand for data analytics services that can help healthcare organizations respond to the crisis. For example, healthcare analytics outsourcing services have been used to track the spread of the virus, identify high-risk patients, and monitor hospital capacity.

On the negative side, the pandemic has also disrupted supply chains and reduced the availability of skilled personnel, which has slowed down the growth of the healthcare analytics outsourcing market in some regions.

Key Players of Global Healthcare Analytics Outsourcing Market Report-

• Accenture
• Cognizant
• Wipro
• IBM
• Optum
• Dell
• Infosys
• Tata Consultancy Services
• Tech Mahindra
• Hewlett Packard Enterprise
• IQVIA
• Persistent Systems
• SCIO Health Analytics
• CitiusTech
• Inovalon
• Mu Sigma
• EXL Service
• Conduent
• L&T Infotech
• EPAM Systems
• ITC Infotech
• Health Catalyst
• NTT DATA Services
• DXC Technology
• PwC
• Deloitte
• KPMG
• EY
• McKinsey & Company
• Boston Consulting Group
• Bain & Company
• UnitedHealth Group
• Anthem
• Humana
• CVS Health
• Walgreens Boots Alliance
• Johnson & Johnson
• Pfizer
• Merck & Co.
• Novartis

Market Segmentation:

By Component:

• Software

• Hardware

• Services

  • Descriptive analytics
  • Predictive analytics
  • Prescriptive analytics
  • Others

By Delivery Model:

• Onshore outsourcing
• Offshore outsourcing
• Nearshore outsourcing

By Application:

• Clinical analytics
• Financial analytics
• Operational and administrative analytics
• Others

By End-User:

• Hospitals and healthcare systems
• Insurance companies
• Pharmaceutical companies
• Government agencies

Revenue Generation Model:

The revenue generation model for healthcare analytics outsourcing services typically involves a combination of project-based fees, monthly retainer fees, and revenue-sharing arrangements.

Supply Chain Model:

The supply chain model for healthcare analytics outsourcing services typically involves third-party service providers who specialize in data analytics and insights generation. These providers may source data from a variety of sources, including electronic health records, claims data, and other healthcare data sources.

Value Chain Model:

The value chain model for healthcare analytics outsourcing services typically involves a process of data collection, data analysis, and insights generation. This process may include data cleaning, data integration, data modeling, and data visualization.

Market Drivers:

Increasing adoption of digital healthcare technologies and electronic health records: As healthcare organizations move away from paper-based systems and towards digital platforms, they generate large amounts of data that can be leveraged to improve patient outcomes and reduce costs. For example, the University of California, San Francisco found that remote monitoring of patients with chronic diseases can lead to a 25% reduction in hospitalization rates and a 19% reduction in overall healthcare costs.

Electronic health records, in particular, provide a centralized source of patient data that can be analyzed to identify trends, monitor patient health, and optimize treatment plans. Electronic health record (EHR) adoption rates have been steadily increasing in the U.S., with 86.9% of office-based physicians using an EHR system as of 2019, according to the Centers for Disease Control and Prevention (CDC). By outsourcing their analytics needs, healthcare organizations can leverage the expertise of specialized firms to extract insights from their data and drive better clinical and business decisions.

Rising focus on population health management and value-based care: The rising focus on population health management and value-based care is driven by the need to improve health outcomes while reducing costs. Under the traditional fee-for-service model, healthcare providers are incentivized to provide more services, regardless of their effectiveness or efficiency.

However, under the value-based care model, providers are rewarded for delivering high-quality care that leads to better outcomes for patients. Population health management is a key component of value-based care, as it involves proactively managing the health of entire populations to prevent disease and manage chronic conditions. According to the National Alliance of Healthcare Purchaser Coalitions, 63% of employers were offering at least one value-based benefit design in 2020, up from 53% in 2018.

Market Restraints:

Limited awareness of the benefits of healthcare analytics outsourcing: Some healthcare providers may not be fully aware of the potential benefits of outsourcing analytics services, such as improved patient outcomes, reduced costs, and better decision-making. This lack of awareness may be due to a lack of education and understanding of healthcare analytics and its potential applications. Additionally, some healthcare organizations may be hesitant to outsource analytics services due to concerns over data privacy and security, or a perceived loss of control over their data. For example, in 2020, only 16% of healthcare provider organizations had fully integrated analytics programs, indicating a lack of awareness or adoption of healthcare analytics solutions.

The complexity of healthcare data and analytics techniques: Healthcare data is often fragmented, unstructured, and comes from multiple sources, making it difficult to integrate and analyze. Additionally, healthcare analytics requires specialized skills and expertise to navigate the complexities of the industry and ensure data quality and accuracy. This can create challenges for healthcare organizations looking to outsource analytics services and for analytics providers seeking to deliver effective solutions. For example, healthcare data is estimated to be growing at a rate of 48% annually, with 80% of the data being unstructured, adding to the complexity of analytics techniques.

Furthermore, the rapid pace of innovation in healthcare technology and analytics techniques requires ongoing investment in education and training to keep up with the latest developments, adding to the complexity of the market.

Opportunity Factors:

• Increasing demand for real-time and predictive analytics to support clinical decision-making.
• Growing need for personalized medicine and precision healthcare.
• Rising demand for healthcare analytics outsourcing services in emerging markets.
• Adoption of artificial intelligence and machine learning technologies in healthcare analytics.
• Development of cloud-based healthcare analytics solutions.

Market Trend:

Product And Technology Trends:

In terms of product and technology development, the healthcare analytics outsourcing market is seeing a shift towards cloud-based solutions that can offer greater scalability and flexibility. There is also a growing emphasis on the development of predictive analytics solutions that can help healthcare organizations identify high-risk patients and intervene before adverse events occur. In addition, there is a trend towards the use of artificial intelligence and machine learning algorithms to analyze complex healthcare data sets and generate insights.

Customer Trends:

Healthcare organizations are increasingly looking for solutions that can help them improve patient outcomes, reduce costs, and optimize resource utilization. They are also seeking solutions that can support value-based care models and population health management initiatives. In addition, there is a growing emphasis on the importance of data security and privacy, and healthcare organizations are looking for solutions that can help them comply with regulatory requirements.

Market Competition Nature:

The healthcare analytics outsourcing market is highly competitive, with a large number of global and regional players offering a wide range of services. Key market players are adopting various strategies to differentiate themselves from competitors and gain a competitive advantage. Some strategies include:

• Developing new and innovative products and services to meet the evolving needs of healthcare organizations.
• Expanding into new geographic markets to tap into emerging opportunities.
• Partnering with other companies to enhance service offerings and strengthen market position.
• Investing in research and development to stay ahead of emerging trends and technologies.
• Acquiring smaller players to expand service offerings and customer base.

Geography Analysis:

North America:

In North America, the healthcare analytics outsourcing market is driven by factors such as the increasing adoption of electronic health records (EHRs) and the growing demand for data-driven insights to support population health management and value-based care initiatives. For example, according to the Office of the National Coordinator for Health Information Technology (ONC), as of 2020, the adoption of electronic health records (EHRs) in the United States had reached 96% among non-federal acute care hospitals and 86% among office-based physicians. The region is home to several leading healthcare analytics outsourcing companies, including Cognizant, Accenture, and IBM. These companies offer a wide range of services, including clinical data management, predictive analytics, and revenue cycle management.

The United States is the largest market for healthcare analytics outsourcing in North America, accounting for the majority of the region's revenue. The country is characterized by a large and diverse healthcare sector, a high level of investment in healthcare IT, and favorable government policies and initiatives. The adoption of EHRs in the United States has also created a vast amount of digital healthcare data that can be leveraged for analytics and insights.

Europe:

Europe is also a significant market for healthcare analytics outsourcing, owing to the high level of healthcare spending in the region and the presence of a large number of healthcare organizations. The region is seeing growing demand for healthcare analytics outsourcing services, driven by the need to improve patient outcomes and reduce healthcare costs. The region is also witnessing increasing regulatory requirements for data security and privacy, which is driving demand for outsourced analytics services.

In Europe, the UK and Germany are among the largest markets for healthcare analytics outsourcing. The UK has a well-established healthcare system, and the government has been investing in digital healthcare solutions in recent years, which is driving demand for analytics services. Germany also has a large healthcare sector and is seeing increasing demand for analytics services to support population health management and value-based care models. For example, in the UK, the National Health Service (NHS) is implementing a value-based care model through its ""Outcomes Based Healthcare"" (OBH) program, which aims to use data analytics to measure the outcomes of care and identify areas where improvements can be made. The OBH program is currently being piloted in several regions across the UK.

Key Benefits of Global Healthcare Analytics Outsourcing Market Report–

• Global Healthcare Analytics Outsourcing Market report covers in-depth historical and forecast analysis.
• Global Healthcare Analytics Outsourcing Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market Opportunities, Competitive Analysis, and Regional and Country Level.
• Global Healthcare Analytics Outsourcing Market report helps to identify opportunities in the marketplace.
• Global Healthcare Analytics Outsourcing Market report covers extensive analysis of emerging trends and competitive landscape.