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The healthcare BPO market size is forecast to increase by USD 12.90 billion at a CAGR of 9.13% between 2022 and 2027. The expansion of the market hinges on various factors, notably the concerted effort to minimize operational expenditures, the proliferation of Business Process Outsourcing (BPO) entities, and the abundance of proficient professionals in the field. Healthcare BPO entails the delegation of specific business functions by an organization to external service providers, encompassing areas such as finance, human resources, accounting, and customer technical support. By leveraging outsourcing, companies can effectively reduce expenses while concentrating on core competencies, thereby optimizing operational efficiency and enhancing overall productivity. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The Customer Service and Technology sector plays a significant role in the healthcare industry through Business Process Outsourcing (BPO) services. Teleformance, a leading provider of customer interaction management solutions, offers a range of offerings including ServeIVR, Teleform, and ManageMentor. These solutions enable healthcare providers to streamline their operations, improve patient engagement, and enhance the overall patient experience. Sentech, another key player in the market, provides Provider Services, Managed Answering Services, and Claims Processing services. They help healthcare organizations to reduce operational costs, improve efficiency, and ensure accurate and timely processing of claims. Back office operations such as data entry, coding, and billing are also critical functions in healthcare BPO. Outsourcing these functions to specialized service providers like Opeartions Consulting Group and Claims Management can help healthcare organizations to focus on their core competencies and improve patient care. In summary, the market offers a range of services including customer interaction management, claims processing, and back-office operations.
The market is a significant segment in the global BPO industry. Health companies and providers are increasingly turning to them to streamline their operations and improve patient care. The healthcare BPO market includes offerings such as revenue cycle management, medical coding and billing, patient engagement, and analytics. They help healthcare organizations reduce costs, increase efficiency, and enhance the overall patient experience. Businesses in this sector are located in offshore and outsourcing centers in countries like India, the Philippines, and Brazil. Processes such as data entry, medical transcription, and customer support are often outsourced to these centers. The use of advanced technologies like artificial intelligence and machine learning is expanding the scope of these offerings, making them more effective and efficient. The market is expected to grow at a steady pace in the coming years, driven by the increasing demand for cost-effective and high-quality healthcare services.
One of the key factors driving the market growth is the presence of skilled professionals. Factors such as outsourcing business functions and working with external vendor cost structures and economies of scale can facilitate a competitive advantage to the healthcare business.
Hence, one of the key advantages of outsourcing is the large availability of skilled healthcare professionals who have extensive expertise and experience in carrying out specific tasks and are ready to take on jobs of any complexity and size in record time. Medical outsourcing companies ensure client needs are fulfilled in the best possible way without the hassle by ensuring the availability of skilled medical professionals. Hence such factors are expected to drive the global market during the forecast period.
A key factor shaping the market growth is the emergence of cloud-computing services domains. Cloud-computing technologies are one of the most emerging trends in the global market. There is increasing adoption of newer technologies in healthcare BPO services due to their wide application in organizations.
For instance, organizations utilize cloud storage for storing critical information remotely at low rates. It enables the central administration to have control over all resources and HR activities as well as eliminates the need for users to update and maintain healthcare infrastructure. Hence such benefits are expected to drive the global market during the forecast period.
Data breaches are one of the key challenges hindering the BPO Market growth. There is an increase in the number of cyberattacks globally, resulting in the loss of sensitive patient information in healthcare organizations, and leading to data breaches in many healthcare centers. However, outsourcing companies are focusing on cybersecurity protocols to ensure the safety of their client data.
Data theft in an organization can include the illegal transfer of data, which can be confidential, financial, or personal. Some of the key information prone to data theft are electronic devices such as servers and computers and include proprietary process-oriented information, technologies, software codes, and passwords. Hence, such data breaches can significantly hinder the global market during the forecast period.
This market report extensively covers market segmentation by solution (manufacturing, research and development, and non-clinical-services), service (revenue cycle management, patient care-services, and patient enrollment and strategic planning), and geography (North America, APAC, Europe, Middle East and Africa, and South America). The market encompasses the documentation and management of business processes in the healthcare sector. Offshore outsourcing of healthcare services includes data security for health insurance and medical cost documentation. Improper planning and financial allocation in offshore contracts can lead to litigation. Customised and standard services are offered in this market, including pharmaceutical manufacturing, provider services, finance and accounting, and customer care services. Teleperformance and Senture are notable companies in this field. Outsourcing strategic activities, such as drug development for chronic diseases and cancer-fighting drugs, involves AI-driven companies and AI-based solutions in the CRO market. Personnel training is crucial for maintaining contractual obligations and ensuring security, including data security and severance pay. It also includes administrative functions, billing and collections, medical care facilities, and virtual care.
The market share growth by the manufacturing segment will be significant during the forecast period. The life science service segment of manufacturing in the global market can be termed as outsourcing various manufacturing processes and services related to pharmaceuticals, biotechnology products, medical devices, and other life science products.
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The manufacturing segment was valued at USD 6.78 billion in 2017 and continued to grow until 2021. Some of the outsourcing activities of this segment include product manufacturing, packaging, labeling, quality control, and regulatory compliance. It can be further categorized into pharmaceutical manufacturing, biotechnology manufacturing, medical device manufacturing, and contract manufacturing organization (CMO) services. Hence, the outsourcing of these manufacturing processes enables healthcare companies such as Pfizer to optimize costs, improve operational efficiency, and leverage specialized expertise while emphasizing their core competencies which are expected to help to drive the growth of the segment in the forecast period.
Outsourcing of R&D services helps to reduce cost and improve efficiency which is expected to drive the market growth of this segment. The global market segment related to life science services, especially research, and development, includes outsourcing various R and D activities to specialized service providers. These providers help pharmaceutical, biotechnology, and medical device companies in executing out research and development activities in a cost-effective and efficient manner. Some of the major offerings include clinical trial management and drug discovery management. Hence such benefits of outsourcing R&D services are expected to drive the growth of this segment during the forecast period.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. The market involves outsourcing documentation and business processes to offshore locations for data security and cost savings. In North America, healthcare infrastructure improvements, increased healthcare expenditure due to medical costs and health insurance, and favorable reimbursements drive the demand for customized and standard services. Offshore outsourcing to countries like India and the Philippines is common for client contract activities, including finance and accounting, customer care services, and provider services. However, improper planning and financial allocation can lead to litigation and severance pay. Advanced technologies like artificial intelligence (AI) and machine learning are revolutionizing drug development for chronic diseases and cancer-fighting drugs through AI-driven companies and AI-based solutions. The CRO market also benefits from personnel training and Teleperformance, Senture, and other strategic activities. Offshoring administrative functions, billing and collections, and virtual care services are ongoing trends.
The market has been expanding significantly in recent years. With the increasing complexity of healthcare operations and the need for cost savings, many healthcare providers and insurers have turned to BPO services. They can include revenue cycle management, claims processing, medical coding, and transcription. The use of advanced technologies such as artificial intelligence and machine learning in healthcare BPO is becoming more common, allowing for more efficient and accurate processing of data. This growth is driven by factors such as the increasing adoption of electronic health records, the need for cost savings, and the growing trend toward value-based care. The market is also being driven by the availability of a large and skilled workforce in countries like India and the Philippines, making offshoring an attractive option for many healthcare organizations. The future of healthcare BPO looks bright, with continued innovation and the integration of new technologies expected to drive growth in the market.
The market encompasses a wide range of offerings catering to the needs of healthcare organizations. Key services include clinical process outsourcing (CPO), which streamlines clinical workflows, and payer service systems, which manage insurance-related tasks. Additionally, integrated front-end services handle customer interactions, while back-office operations ensure efficient administrative functions. Member management and provider management services focus on optimizing relationships with stakeholders, while care management ensures quality patient care. Billing and accounts management services handle financial transactions, while human resource services manage workforce needs. Lastly, provider service offerings support healthcare providers in delivering effective services. Together, they form the backbone of the global market, supporting the industry in delivering quality care and operational efficiency.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.13% |
Market growth 2023-2027 |
USD 12.90 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.73 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 41% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Cognizant Technology Solutions Corp., DATAMARK Inc., Founder Group, GeBBS Healthcare Solutions Inc., Genpact Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., Invensis Technologies Pvt Ltd., IQVIA 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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Solution
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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