(PharmaNewsWire.Com, September 04, 2021 ) According to the new market research report “Healthcare BPO Market by Outsourcing Models, Provider (Patient Care, RCM), Payer (Claims Management, Billing & Accounts), Life Science (R&D, Manufacturing, Sales & Marketing (Analytics, Research)), & Region (Source, Destination) – Global Forecasts to 2026″, published by MarketsandMarkets™, the global healthcare BPO market is projected to reach USD 468.5 billion by 2026 from USD 296.4 billion in 2021, at a CAGR of 9.6% during the forecast period.
Healthcare business process outsourcing allows healthcare facilities to contract their non-core activities to an external party and focus on their core competencies. Growth of this market is attributed to the growing outsourcing in the pharma and biopharma industries, need to curtail the escalating healthcare costs, rising demand for niche services (including care management and fraud detection services), and the need for structured processes and documentation in the healthcare industry.
The companies have a large market spread across various countries in North America, Europe, Asia Pacific, and the Rest of the World.
The COVID-19 pandemic has had a significant impact on the world’s population and economy. As a result of the pandemic, healthcare facilities are facing immense pressure to create a well-coordinated environment where all clinical functions are connected internally and where the organization operates in coordination with other healthcare units. This is compelling healthcare organizations to outsource their non-core functions, including revenue cycle management, claims management, and patient engagement, among other functions, to third parties and focus on their core competencies for better patient outcomes. The impact of COVID-19 on the healthcare BPO industry is complicated as well as multi-faceted.
Drivers: Pressure to reduce the rising healthcare costs
Cost savings form an important consideration in outsourcing, as by doing so, companies can reduce costs on resource management, labor, and space. There is pressure on the margins of healthcare payers due to the rise of health insurance exchanges (online marketplaces to obtain health insurance from competing providers) in the US. This enables consumers to obtain coverage from competing private healthcare providers and is likely to accelerate the adoption of outsourcing to rationalize costs.
Opportunities: Growing adoption of artificial intelligence-based tools for drug discovery
Artificial intelligence and machine learning, in particular, make the drug discovery process more efficient and substantially improve success rates at the early stages of drug development. This will help healthcare BPO service providers to bring about major breakthroughs, as artificial intelligence also plays an important role in the discovery of drugs for chronic diseases such as cancer. Owing to its capabilities, AI significantly reduces the time taken to bring a cancer-combatting drug to the market, which will lead to significant growth in the healthcare BPO services market.
North America dominated the healthcare BPO market, with a share of 49.0% in 2021, followed by Europe (30.6%) and the RoW (20.3%). Factors such as increased pressure to reduce costs and improve services and changing government regulations are driving the growth of the healthcare BPO market in North America. In the US, pharmaceutical companies are facing significant pressures related to drug prices as the Medicare Prescription Drug Coverage (Part D) offers prescription drug coverage to everyone with Medicare. Additionally, the patent expiration of several blockbuster drugs is expected to affect the revenue of large pharmaceutical companies in the US and Canada. Taking these factors into consideration, a number of pharmaceutical companies are focusing on cost reduction through outsourcing.
The key players have a strong foothold in the market and offer a wide range of services. Some of the key players in this market are Accenture (Ireland), Cognizant (US), Infosys BPM (India), IBM Corporation (US), IQVIA (US), TCS (India), Wipro (India), and WNS (Holdings) Ltd. (India) are some of the major players in this market.
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