Global Healthcare BPO Market - Segmented by Payer Service, Product Service, Pharmaceutical Services, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The global healthcare BPO market is expected to register a CAGR of 8% during the forecast period, 2018 to 2023. Business Process Outsourcing (BPO) is a process where healthcare providers select the most suited third-party vendors for some specific business processes. This allows hospitals and medical professionals to spend their valuable time on patient care rather than other mundane jobs in the office.
Rise of Near-shore Outsourcing Destinations and Access to Technology
As near-shoring gives companies the advantage of similarity in culture, time zone, and languages, and helps them deliver better-quality services, companies have started outsourcing their business processes to BPO service providers based in the same region. Companies have also started focusing on protecting their outsourced businesses and minimizing socioeconomic risks, through similar currency and regulation systems, which are expected to boost the growth of near-shore outsourcing destinations and access to technology. Near-shore providers highlight their advantages as having the best of both worlds, as organizations can work with teams on similar time zones. This approach generates more savings compared to onshore, although it sometimes falls short of the cost savings, when partnering with off-shore providers. Owing to their benefits, rise of near-shore outsourcing destinations and access to technology are driving the market. In addition, the need to reduce administrative cost and overall healthcare cost, no infrastructural cost, and lesser staff training cost, with fewer errors in several non-critical functions, like finance and accounting, customer care services, etc., are expected to supplement the growth of this market.
Although India has grown as a preferred outsourcing destination for healthcare BPO services, several concerns regarding policy framework exist, in terms of tax laws, data privacy laws, IP protection laws, and clinical trial laws. The Health Insurance Portability and Accountability Act (HIPAA), by the United States, defines policies, procedures, and guidelines for maintaining the privacy and security of electronic healthcare transactions, along with outlining offenses and penalties for healthcare violations. Therefore, to provide outsourcing services to overseas vendors, Indian vendors need to comply with international standards of security and privacy, to reduce/avoid business losses. Although the government is gradually taking steps to provide more clarity on these laws, the current scenario is adversely affecting the global healthcare BPO market. Other factors, such as service reliability and data privacy concerns, are hindering the market growth.
US to Lead the Market
The United States in North America dominates the market for healthcare BPO due to the presence of strong reimbursement framework, high public and private healthcare expenditures, and a high percentage of claim records. There are some of the factors driving the growth of the market in this region. North America has the highest market share, followed by Europe and Asia-Pacific.
Key Developments in the Market
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