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Business Strategy: How the Health Net-Cognizant Megadeal Is Relevant to the Rest of the Healthcare Payer IT Outsourcing Market

Business Strategy: How the Health Net-Cognizant Megadeal Is Relevant to the Rest of the Healthcare Payer IT Outsourcing Market

This IDC Health Insights report takes the megadeal of 2014 between Health Net and Cognizant as a point of reference within the context of historical data about IT outsourcing deals since 2008. It analyzes data from IDC's Services Deals Database, our depository of publicly announced BPO outsourcing, IT consulting, and IT outsourcing services deals. Then it draws out the implications for future deal making of this sort.

According to Xiao-Fei Zhang, research director, IDC Global Services Markets and Trends, and Sven Lohse, research manager at IDC Health Insights, "We believe that in 2017 and 2018, several other large payers will also take steps to outsource their core claims processing functions to one or more of the largest IT outsourcing vendors. In the meantime, the drought of deals in 2013 and 2014 will moderate, and the healthcare payer IT outsourcing market will see solid growth in smaller deals within the bounds of existing payer-vendor relationships."

Please Note: Extended description available upon request.


IDC Health Insights Opinion
In This Study
Situation Overview
The Approach
Future Outlook
Essential Guidance
Actions to Consider
For Payers
For Services Vendors
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Related Research
Synopsis
Table: U.S. Healthcare Payer Publicly Announced IT Outsourcing Deals by Total Annual Run Rate, 2008–2014 ($M)
Figure: U.S. Healthcare Payer Publically Announced IT Outsourcing Contract Market Overview, 2008–2014

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