European Healthcare IT Outsourcing Market to Offer Lucrative Opportunities to Healthcare IT

Vendors and Service Providers London, United Frost: Spiralling healthcare costs and the rising complexity of healthcare IT systems are compelling European hospitals to outsource their IT needs. Moreover, increasing public sector support of IT modernisation initiatives across Europe are creating significant opportunities for healthcare IT vendors and service providers. In future, vendors are likely to embrace models like the application service provider (ASP) in a big way.The European Healthcare IT Outsourcing Market generated revenues of $396.4 million in 2005 and estimates to reach $697.7 million in 2010.

globally, the healthcare IT sector is set to witness organic growth due to the interest generated by clinical systems such as electronic medical record (EMR) and administrative ones such as patient administrative systems (PAS). Also, the development of technologies such as application service provider in healthcare and the potential returns they can deliver to financial bottom lines are expected to have a significant impact on the European healthcare IT outsourcing industry.

The IT modernisation initiatives of various governments in Europe are likely to pave the way for increased adoption of the ASP model. In the near future, IT outsourcing and options such as ASP are likely to be key to the efficient management of healthcare IT and gain appeal in countries such as the United Kingdom, France and the Netherlands where healthcare costs represent the single largest component of public spending.

With a range of participants including healthcare solution vendors, modality vendors, pure IT solution vendors and technology/infrastructure consulting companies jumping onto the healthcare IT outsourcing bandwagon, the market promises to be highly competitive.

With intensifying competition, IT solution vendors and service providers will find it difficult to sustain profitability. Industry participants will have to quickly adapt to changes in technology to create a niche for themselves.

To sustain their profitability, market vendors will need to design appropriate pricing plans for their services and generate more awareness on the advantages of technologies such as ASP. In addition, they will need to forge strategic alliances with other industry participants to ensure mutual benefit and create win-win situations.

European Healthcare IT Outsourcing Market and Opportunities in ASP

Publ 20060405