Report Overview

Global Healthcare BPO Market - Industry Trends & Forecast Report, 2029

Global healthcare BPO market size was estimated at USD 331.54 billion in 2022. During the forecast period between 2023 and 2029, global healthcare BPO market size is expected to grow at a significant CAGR of 10.1% reaching a value of USD 644.67 billion by 2029. One of the primary factors driving the healthcare BPO market's growth is the significant expansion of the healthcare sector, as well as the rising prevalence of various cardiovascular diseases, particularly among the growing geriatric population. As a result, the number of hospital admissions around the world is increasing. Rising consumer awareness about the availability of various health insurance plans and telehealth services is supporting market growth. Other growth-inducing factors include rapid technological advancements and the integration of cloud-based BPO solutions in hospitals and clinics for implementing global service delivery models at cost-effective rates.

Global Healthcare BPO Market - Overview

Healthcare business process outsourcing (BPO) is a strategy used by healthcare organizations to choose and assign specific business-related operations to third-party vendors for execution. It supports the processing of claims, the analysis of patient information and enrollment, strategic planning, account management, business acquisition, and billing. In turn, this helps healthcare organizations improve workflow, lower operational costs, and provide high-quality services to patients while reducing errors and unauthorized data access. Currently, healthcare BPO is divided into different service categories like front- and back-end.

Growth Drivers

Pressure to cut back on the rising cost of healthcare

Cost savings are a crucial factor to consider when outsourcing because it allows businesses to spend less on labor, space, and resource management. The growth of health insurance exchanges (an online marketplace where consumers can buy health insurance from competing providers) in the US is putting pressure on the margins of healthcare payers. This makes it possible for customers to get insurance from competing private healthcare providers and is probably going to hasten the adoption of outsourcing to reduce costs. The push for paying for value increased focus on care management, and increased cost-sharing with consumers are taking hold more firmly as healthcare continues to consume an increasing portion of the overall economy, slowing the growth of the healthcare industry. However, medical costs have remained stable over the last five years, ranging between 6% and 7%, and this is expected to drive healthcare expenditure. Rising healthcare costs are thus expected to significantly increase offshore outsourcing and, as a result, the global healthcare BPO market.

Restraints

Hidden outsourcing fees

Cost savings and potential business value of outsourcing are frequently negatively impacted by improper planning and financial allocation for outsourcing activities. Businesses that plan their finances while outsourcing their business processes often neglect to account for unforeseen costs, such as those associated with vetting and choosing a vendor, transitioning offshore contracts, and enhancing employee security and severance pay. Rising labor costs in emerging nations as a result of economic growth raise concerns about the value for money that these nations will provide. Vendors' customized services and solutions will probably cost 15–30% more than their standard offerings. When a client exits a contract prematurely, costs rise and both the buyer and the provider are exposed to litigation, raising legal costs. Clients avoid outsourcing when the expected cost savings are not realized. This could stifle growth in the healthcare BPO market.

Impact of COVID-19 on Global Healthcare BPO Market

The Covid-19 pandemic had a sizable effect on the market under investigation. The pandemic's initial stages hindered the expansion of the healthcare industry. Research and development were put on hold as a result of strict lockdowns and shutdowns. However, service providers, their customers, and businesses with internal shared services centers performing business process work all over the world used a variety of tactics to maintain their operations while putting employee safety at the forefront of their initiatives. In May 2021, Predible, a startup based in Bengaluru (India) enabled precision diagnostics for chronic lung diseases amid the pandemic. The COVID-19 pandemic is therefore anticipated to have a significant impact on the market under study as a result of the aforementioned factors.

Global Healthcare BPO Market

Segmental Coverage

Global Healthcare BPO Market - By Services

Global healthcare BPO market is divided into Front-end Services, Claims Management, Back-office Operations, and other segments. During the forecast period, the claims management subsegment is expected to have the largest market share. Increasing insurance adoption, changing healthcare regulations governing health insurance and medical claims, and a scarcity of expertise will result in a larger share of the claims management market.

Global Healthcare BPO Market - By Provider Services

On basis of provider services, global healthcare BPO market is divided into Patient Enrollment & Strategic Planning, Revenue Cycle Management, and Patient Care. Medical facilities use billing monitoring as a tool to keep track of all financial communications with patients from the time of their initial consultation until the payment of any unpaid recovery debt. The RCM (revenue cycle management) is the collective name for all medical and management tasks required to oversee and recoup care delivery costs. As a result, it is expected that increased hospital demand for RCM products will encourage segment growth. The term supply chain administration refers to the entire process of accepting revenues and managing returns. According to the previously cited source, RCM also blends payment details with aggregate records, insurer names, client private details, health findings, and medical classifications in an efficient and error-free manner. As a result, RCM was once widely used in the medical industry, boosting product demand.

Global Healthcare BPO Market – By Pharmaceutical Services

On basis of pharmaceutical services, global healthcare BPO market is divided into R&D Services, Manufacturing Services, and Non-clinical Services. The manufacturing services segment dominates the market for healthcare BPO market. This is primarily due to the extensive use of contract manufacturing in the pharmaceutical and medical device industries. The market for healthcare BPO is divided into contract development and contract manufacturing segments based on pharmaceutical services.

Global Healthcare BPO Market – By Region

On basis of the region, global healthcare BPO market is divided into North America, Europe, Asia Pacific (APAC), Latin America, and Middle East and Africa (MEA). The overall global healthcare BPO market is experiencing an increase in demand to reduce rising healthcare costs. Consolidation in the healthcare industry may stifle market growth. In the forecast period, APAC will be one of the fastest-growing regions, followed by North America and Europe. In the North America region, the United States holds the biggest piece of the overall industry. This can be significantly credited to the nearness of a solid repayment system, higher expenditure in public and private sector healthcare organizations, and a high level of guarantee records. There is a portion of the elements driving the development of the market, in the locale. The presence of emerging economies such as Japan, Australia, New Zealand, South Korea, and India will fuel the economy.

Competitive Landscape

Major companies in the global healthcare BPO market include Genpact (Bermuda), IBM Corporation (US), Infosys (India), Lonza (Switzerland), Omega Healthcare (India), Quintiles IMS (US), Accenture (Ireland), Cognizant (US), Firstsource Solutions (India), and GeBBS Healthcare Solutions (US). The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Development

• In April 2021- Xerox Business acquired Holding company CT to further its digital strategy and increase its market share in North America. In Eastern Canada, the holding firm CT provided document control services.

• In May 2020- IQVIA unveiled HCP/HCO Participation Administration, an integrated final stage, coordinated medical practitioner (HCP/HCO) system. It simplifies the international scheduling, strategic planning, scheduling, and payment of HCP/HCOs.

Scope of the Report

By Services

• • Front-end Services

  • Claims Management

  • Back-office Operations

  • Others

By Provider Services

• • Patient Enrollment & Strategic Planning

  • Revenue Cycle Management

  • Patient Care

By Pharmaceutical Services

• • R&D Services

  • Manufacturing Services

  • Non-clinical Services

     By Region

• North America

• Europe

• Asia Pacific

• Middle East & Africa

• Latin America

1.    Research Framework

1.1. Research Objective

1.2. Product Overview

1.3. Market Segmentation

2.    Research Methodology

2.1. Qualitative Research

2.1.1.   Primary & Secondary Sources

2.2. Quantitative Research

2.2.1.   Primary & Secondary Sources

2.3. Breakdown of Primary Research Respondents, By Region

2.3.1.   Secondary Research

2.3.2.   Primary Research

2.4. Breakdown of Primary Research Respondents

2.5. Market Size Estimation

2.6. Assumption for the Study

2.7. Market Breakdown & Data Triangulation

3.    Executive Summary

4.    Global Healthcare BPO Industry Insights

4.1. Industry Value Chain Analysis

4.1.1.   Vendor Matrix

4.2. DROC Analysis

4.2.1.   Growth Drivers

4.2.2.   Restraints

4.2.3.   Opportunities

4.2.4.   Challenges

4.3. Technological Landscape

4.4. Regulatory Framework

4.5. Company market share analysis,2019

4.6. Porter’s Five forces analysis

4.6.1.   Bargaining Power of Suppliers

4.6.2.   Bargaining Power of Buyers

4.6.3.   Threat of New Entrants

4.6.4.   Threat of Substitutes

4.6.5.   Intensity of Rivalry

4.7. Strategic Outlook

5.    Global Healthcare BPO Market Overview

5.1. Market Size & Forecast 2016-2026

5.1.1.   By Value (USD)

5.2. Market Share & Forecast

5.2.1.   By Payer Service

5.2.1.1.       Claims Management

5.2.1.2.       Integrated Front-end Services and Back-office Operations

5.2.1.3.       Member Management

5.2.1.4.       Product Development and Business Acquisition (PDBA)

5.2.1.5.       Provider Management

5.2.1.6.       Billing & Accounts Management Services

5.2.1.7.       HR Services

5.2.1.8.       Others

5.2.2.   By Provider Services

5.2.2.1.       Patient Enrollment & Strategic Planning

5.2.2.2.       Revenue Cycle Management

5.2.2.3.       Patient Care

5.2.3.   By Pharmaceutical Services

5.2.3.1.       R&D Services

5.2.3.2.       Manufacturing Services

5.2.3.3.       Non-clinical Services

5.2.4.   By Region

5.2.4.1.       North America

5.2.4.2.       Europe

5.2.4.3.       Asia Pacific

5.2.4.4.       Latin America

5.2.4.5.       Middle East & Africa

6.    North America Healthcare BPO Market

6.1. Market estimates & forecast

6.1.1.   By Payer Service

6.1.2.   By Provider Services

6.1.3.   By Pharmaceutical Services

6.1.4.   By Country

6.1.4.1.       U.S

6.1.4.2.       Canada

7.    Europe Healthcare BPO Market

7.1. Market estimates & forecast

7.1.1.   By Payer Service

7.1.2.   By Provider Services

7.1.3.   By Pharmaceutical Services

7.1.4.   By Country

7.1.4.1.       Germany

7.1.4.2.       U.K

7.1.4.3.       France

7.1.4.4.       Italy

7.1.4.5.       Rest of Europe

8.    Asia Pacific Healthcare BPO Market

8.1. Market estimates & forecast

8.1.1.   By Payer Service

8.1.2.   By Provider Services

8.1.3.   By Pharmaceutical Services

8.1.4.   By Country

8.1.4.1.       China

8.1.4.2.       India

8.1.4.3.       Japan

8.1.4.4.       Rest of APAC

9.    Latin America Healthcare BPO Market

9.1. Market estimates & forecast

9.1.1.   By Payer Service

9.1.2.   By Provider Services

9.1.3.   By Pharmaceutical Services

9.1.4.   By Country

9.1.4.1.       Brazil

9.1.4.2.       Argentina

9.1.4.3.       Rest of Latin America

10.Middle East & Africa Healthcare BPO Market

10.1.             Market estimates & forecast

10.1.1.                By Payer Service

10.1.2.                By Provider Services

10.1.3.                By Pharmaceutical Services

10.1.4.                By Country

10.1.4.1.    Saudi Arabia

10.1.4.2.    UAE

10.1.4.3.    South Africa

10.1.4.4.    Rest of MEA

11.Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *

11.1.             Tata Consultancy Services

11.2.             WNS (Holdings)

11.3.             Xerox

11.4.             R1 RCM

11.5.             Quintiles IMS Holdings

11.6.             Omega Healthcare

11.7.             Lonza

11.8.             Invensis Technologies

11.9.             Infosys

11.10.          IBM

11.11.          Genpact

11.12.          Gebbs Healthcare Solutions

11.13.          Firstsource Solutions

11.14.          Cognizant Technology Solutions

11.15.          Accenture

11.16.          Other Prominent Players

* Financial information of non-listed Companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable