ICT procurement trends in Healthcare - Enterprise ICT investment plans
This report presents the findings from a survey of 155 healthcare providers regarding their approach to Information & Communications Technology (ICT) procurement. The survey investigates the way that healthcare providers like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.
Introduction and Landscape
Why was the report written? To highlight the criteria on which healthcare providers select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.
What is the current market landscape and what is changing? Kable’s survey reveals that healthcare providers prefer to deploy technologies on-site as they want full control over their internal and external data and processes. However, preference towards hosted deployments is set to increase in the coming months.
What are the key drivers behind recent market changes? Owing to various advantages such as scalability, easier management, and cost savings, healthcare providers are increasing their preference towards hosted deployment.
What makes this report unique and essential to read? Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Procurement. Very few IT analyst houses will have interviewed 150+ ICT decision makers in the healthcare industry in H2 2012.
Key Features and Benefits
Provides insights into healthcare providers’ preferred buying approaches.
Comprehend the operational objectives that healthcare providers are looking to achieve through their IT investment strategy.
Appreciate the IT objectives that healthcare providers’ are looking to achieve through their IT investment strategy.
Understand the factors that are influencing healthcare providers’ decision to select an ICT provider.
Understand which organisational roles influence ICT purchasing decisions and signing off budgets.
Key Market Issues
Healthcare providers consider specific functionality expertise/depth to be an important factor in selecting an ICT provider, as the deployment of healthcare-specific solutions requires adequate skill and an understanding of working procedures to support huge interoperability requirements (given the integration of different medical specialities).
It is evident from the survey that the deployment of technologies as a hosted model is not very popular amongst healthcare providers due to new patient privacy standards and ever-changing regulations.
According to Kable’s survey, healthcare providers state that the objective of raising efficiency heavily influences their IT investment strategy, with the highest average rating of X on a scale of 1 to 4. As healthcare providers look to improve their profitability and productivity, they are striving to deploy technological solutions that help them to improve their operational efficiency.
With increasing ICT implementations amongst healthcare providers, the complexity of ICT infrastructure is on the rise. Mirroring this trend, the survey shows that a large proportion of healthcare providers is operating in an ICT infrastructure environment which is either very complex or somewhat complex.
Local resellers have an edge over national resellers in the healthcare sector as they are considered to be in a better position to provide timely after-sales support services.
Kable believes that healthcare providers’ preference towards hosted deployments is certain to increase (with X% of respondents having a preference towards the hosted model) although at a slower pace, owing to various advantages such as scalability, easier management, and cost savings.
To improve their financial health, healthcare providers are placing importance on business objectives such as cutting costs and increasing revenues/budgets, with average ratings of X on the same scale.
Kable’s survey shows that the IT objectives of ‘demonstrate the value of IT to working practices’ and ‘align IT with overall goals’ are the most important factors influencing IT investment strategy amongst healthcare providers, with average ratings of X on a scale of 1 to 4.
According to Kable’s survey, price is the most important criterion for healthcare providers when choosing an ICT provider, with the highest average rating of X on a scale of 1 to 4.
Kable’s survey highlights that healthcare providers rate the CIO/IT department as the most influential authority when making ICT purchasing decisions, with the highest average rating of X on a scale of 1 to 4.