Healthcare BPO Market to Grow by USD 17.30 Billion (2024-2028), Driven by Focus on Reducing Operational Costs, AI-Powered Report Highlights Market Transformation - Technavio

NEW YORK, Nov. 12, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global healthcare business process outsourcing (BPO) market size is estimated to grow by USD 17.30 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  10.87%  during the forecast period. Focus on reducing operational costs is driving market growth, with a trend towards emergence of cloud-computing services. However, language barriers and goodwill risks  poses a challenge.Key market players include Accenture Plc, Cognizant Technology Solutions Corp., DATAMARK Inc., Foundever Group., GeBBS Healthcare Solutions Inc., Genpact Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., Invensis Technologies Pvt. Ltd., IQVIA Holdings Inc., Maxicus Inc., OMH HealthEdge Holdings LLC, Parexel International Corp., R1 RCM Inc., Sutherland Global Services Inc., Tata Consultancy Services Ltd., UnitedHealth Group Inc., Wipro Ltd., and WNS Holdings Ltd..

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Market Driver

In the healthcare industry, cloud computing is a significant trend for Business Process Outsourcing (BPO) services. By utilizing cloud storage, organizations can store critical information off-site at affordable rates, allowing central administrations to manage all resources and HR activities centrally. This eliminates the need for users to update and maintain healthcare infrastructure, as service providers handle services and maintenance. Service-level agreements (SLAs) ensure reliable delivery, management, and maintenance of these services. Additionally, cloud technologies enable Software as a Service (SaaS) usage, allowing remote access to data and services through web browsers without installing software. Cloud-based BPO services offer flexibility in deployment and short implementation times. These advantages have led healthcare organizations worldwide to adopt cloud computing for cost savings. The integration of cloud technologies with BPO solutions also increases efficiency by enabling collaboration with other software, such as ERP, through real-time updates. Therefore, the healthcare BPO market is expected to grow substantially during the forecast period due to these advantages. 

The Healthcare Business Process Outsourcing (BPO) market is thriving, with Medical Billing Services and Revenue Management Solutions being top trends. Medical Billing involves processing insurance claims and collecting payments, while Telehealth Support, Medical Transcription, and Remote Patient Monitoring offer virtual care solutions. IT Services Providers offer customized services for Patient Registration, Insurance Verification, and Claims Processing, ensuring data security and adherence to Healthcare Regulations. Offshore outsourcing for Medical Coding, Transcription Services, and Medical Documentation can reduce medical costs and healthcare expenditure. However, proper planning and financial allocation are crucial to avoid impractical offshore contracts and potential issues like severance pay. Work Practices must prioritize customer interactions, access healthcare, and virtual care, while maintaining work-life balance. Offshore BPOs must ensure data security and compliance with health insurance regulations. 

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 Market Challenges

• Language barriers pose significant challenges for the global healthcare Business Process Outsourcing (BPO) market. With service providers located in various regions, cultural knowledge, fluency, and communication skills are essential for delivering excellent customer support. For instance, a marketing team may adopt cloud-based software for global access to information. However, if the instructions are only in English, non-native English speakers may struggle, leading to operational inefficiencies and decreased productivity. Language issues intensify existing operational challenges, such as email subjects, database updates, and presentation discussions. Miscommunication of business needs and goals can hinder the growth of the healthcare BPO market during the forecast period. Additionally, BPO companies' failure to meet deadlines can negatively impact a company's reputation. Operational risks, including people, processes, and technology, further challenge BPO performance. These risks may hinder the healthcare BPO market's growth in the forecast period.
• The Healthcare Business Process Outsourcing (BPO) market is witnessing significant growth due to the increasing demand for cost savings and improved efficiency in the healthcare industry. However, challenges persist, including client-contract disputes leading to litigation. The integration of artificial intelligence (AI) and machine learning in drug development for chronic diseases and cancer-fighting drugs is transforming the CRO services market. AI-driven companies are providing AI-based solutions for drug discovery programs. However, challenges remain in personnel training and the integration of these advanced technologies. The finance and accounting, customer care services, and administrative functions of healthcare providers are popular outsourcing areas. Teleperformance and Senture are major players in this market. Strategic activities like outsourcing of billing and collections, medical care facilities, virtual care, and insurance payer services are crucial. Back-Office Operations, Member Management, Provider Management, Care Management, Human Resource Services, Provider Services, Strategic Planning, Pharmaceutical Services, Manufacturing Services, Non-Clinical Services, Patient Epidemiology, and Pipeline Analysis are some of the key areas outsourced. Payroll, data entry, and claims management are also common. Ensuring patient satisfaction and effective communication with payers are essential for success.

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Segment Overview 

This healthcare business process outsourcing (bpo) market report extensively covers market segmentation by  

1. Solution 
• 1.1 Manufacturing
• 1.2 Research and development
• 1.3 Non-clinical services
2. Service 
• 2.1 Revenue cycle management
• 2.2 Patient care services
• 2.3 Patient enrollment and strategic planning
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Manufacturing-  In the healthcare business process outsourcing (BPO) market, the life science service segment of manufacturing refers to the outsourcing of various manufacturing processes and services related to pharmaceuticals, biotechnology products, medical devices, and other life science products. This segment includes three main areas: pharmaceutical manufacturing, biotechnology manufacturing, medical device manufacturing, and Contract Manufacturing Organization (CMO) services. Pharmaceutical manufacturing involves the production of pharmaceutical drugs, including active pharmaceutical ingredients (APIs), formulations, and finished dosage forms. Biotechnology manufacturing focuses on the production of biologics, such as therapeutic proteins, monoclonal antibodies, vaccines, gene therapies, and cell-based products. Medical device manufacturing covers the manufacturing of medical devices, including diagnostic equipment, implants, prosthetics, surgical instruments, and wearable devices. CMOs provide comprehensive manufacturing services to life science companies, offering end-to-end solutions from process development to supply chain management. Outsourcing these manufacturing processes enables healthcare companies to optimize costs, enhance operational efficiency, and leverage specialized expertise, allowing them to concentrate on their core competencies. This trend is expected to fuel the growth of the life science service of manufacturing in the healthcare BPO market.

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Research Analysis

The Healthcare Business Process Outsourcing (BPO) market refers to the practice of contracting third-party service providers to manage and optimize various business processes in the healthcare industry. These processes include documentation, finance and accounting, customer care services, telephonic support, and strategic activities such as payer services, claims management, back-office operations, member management, provider management, care management, and human resource services. Offshore outsourcing is a common approach in this market due to cost savings, but it requires careful planning and financial allocation to ensure data security and maintain the quality of services. Improper planning and mismanagement of offshore contracts can lead to increased medical costs and healthcare expenditure. Key services provided in the healthcare BPO market include provider services, finance and accounting, and customer care services from major players like Teleperformance and Senture.

Market Research Overview

Healthcare Business Process Outsourcing (BPO) refers to the practice of contracting third-party service providers to manage and optimize non-core business functions in the healthcare industry. Documentation, finance and accounting, customer care services, and administrative functions are common areas of outsourcing. Offshore outsourcing to countries with lower labor costs is a popular trend, but it requires careful planning and financial allocation to ensure data security and client contract compliance. Improper planning and severance pay issues have led to litigation in some cases. Customized services and standard services are offered by various BPO providers, including Teleperformance and Senture. AI-driven companies are revolutionizing healthcare BPO with AI-based solutions in drug development, chronic diseases management, and cancer-fighting drug discovery programs. Personnel training, strategic activities, and CRO services market are also significant areas of growth. Healthcare regulations, patient satisfaction, and insurance are crucial factors in healthcare BPO. Services include billing and collections, medical care facilities, virtual care, and patient epidemiology. Access Healthcare is an IT services provider offering medical billing, revenue management solutions, and telehealth support, among others.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Solution
• Manufacturing
• Research And Development
• Non-clinical Services
• Service
• Revenue Cycle Management
• Patient Care Services
• Patient Enrollment And Strategic Planning
• Geography
• North America
• APAC
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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