The outlook for global healthcare IT services firms in a COVID-19 era
Our mid-year analysis of global IT services firms indicates that the initial slowdown due to COVID-19 has given way to new demand for IT services, largely with a focus on cost reduction. The good news is that most of the firms have done well in their healthcare segment revenue growth relative to overall company revenue growth, which is an indication of the continued attractiveness of healthcare markets for the firms. IT services firms report an increase in infrastructure support outsourcing among providers, BPO transactions among payers, and new technology initiatives around cloud migration as key opportunity areas. IT services firms are also seeing demand for telehealth and other patient-facing initiatives, leading to demand for CRM and data management infrastructure solutions.
As before, our analysis differentiates firms based on their strengths in the payer and provider segments, and between traditional IT services and emerging technology areas. Our commentary in the individual company overviews provides guidance on these aspects. We have initiated coverage of Tech Mahindra in this report, primarily based on the HCI Group, which is the market-facing organization for Tech Mahindra’s health and life sciences business. The HCI Group, which was acquired by Tech Mahindra in 2017, has a significant presence in the provider market by virtue of its EHR consulting business.
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