Aggregated US provider and payer healthcare ICT spending was close to $26 billion in 2004 and will grow to over $34 billion by 2008, with a CAGR of 7%. By 2008 payer spending will amount to $7.5 billion and provider spending will be at $26.7 billion. (based on forecast from Research & Reports)
To gear up for this emerging trend, CSC made a $375 million acquisition of First Consulting Group along with increasing the offshore capabilities in India.The healthcare provider market currently is cornered by CSC, IBM, Accenture,EDS and Perot systems with billion dollar deals in the bag,spread over several years.
Indian IT companies have not been strong in the US provider market primarily due to the lack of availability of HL7 certified professionals in India. However, this is changing fast. In 2007 India produced the most number of HL7 certified professionals worldwide, (120) followed by US with 60 professionals.
As the Financial services sector in US continues to reel under the mortgage crisis, the healthcare market comes as a relief to the major IT outsourcing companies.
According to analysts, Syntel and TCS can capitalize on the growing healthcare provider market in US, primarily because of their extensive experience in HL7. HL7 (Health Level Seven) standards is the primary standard for data interchange in the healthcare provider market. TCS has experience working with the NHS-UK healthcare project while Syntel has deep domain expertise built from working with Mc Kesson.
Sunday, November 25, 2007
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