IT Outsourcing In the Healthcare Industry Essay

IT Outsourcing In the Healthcare Industry Essay

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Executive Summary
The healthcare industry in the U.S and Canada account for 72% of the global healthcare IT outsource market, taking the largest share of the market. The market is expected to reach $50.4 billion by 2018 up from $35 billion in 2013. IT Outsourcing is the factor that is leading this exponential growth. There are many key factor within IT outsourcing that is helping push the industry forward. The U.S. offers high quality care but it also comes at a higher price to patients so this is an industry that is confronted by the need to continue to offer quality service but reduce costs. With outsourcing, hospitals can gain benefits such as economies of scale as well as the benefit of having their work done by experts in that field. Another driver for outsourcing is the advantage of minimizing risks by sharing the work load.
The major IT services outsources consists of five segments: Provider IT outsourcing, Payer IT outsourcing, Life sciences IT outsourcing, Operational IT outsourcing, and Infrastructure IT outsourcing. In terms of efficiency, through outsourcing IT processes to outside sources, a burden is lifted off of hospitals and is now shared with the vendor. Doctors and other professionals can now maximize their time that would have been spent doing extra work on their own personal productivity, thus offering better service. Through outsourcing, organizations can streamline their operations effectively. By cutting out unnecessary work and complicated distractions, doctors and nurses can be more effective in the service they give.
Extra resources are now available for other purposes that could help improve the effectiveness of a hospital or doctor’s office. As government regulation constantly changes, healthcare ...


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... & Human Services: http://www.hhs.gov/ocr/privacy/hipaa/understanding/index.html
Sharamitaro, A. (2011, January). Healthcare Reform: Impact on Hospitals. Retrieved from Health Capital.com: http://www.healthcapital.com/hcc/newsletter/1_11/aca.pdf
Solutions, M. O. (2012). Buiness Process Outsourcing: Increased Efficiency. Retrieved from Deerwood Technologies: http://www.deertech.com/e-news/jan13_3.html
Stan Lepeak, M. V. (2008, March). The Issue: Energing Outsourcing Trends in the Healthcare Industry. Retrieved from EquatTerra: http://www.equaterra.com/_filelib/FileCabinet/Research/3068_EquaTerra_Perspective_Outsourcing_Trends_in_Healthcare_Mar_2008_%283068%29.pdf?FileName=3068_EquaTerra_Perspective_Outsourcing_Trends_in_Healthcare_Mar_2008_%283068%29.pdf
Webster, M. (n.d.). Outsource Definition. Retrieved from http://www.merriam-webster.com/dictionary/outsource

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