Skip to main content
healthcare bpo featured image


When there is a person, who is interested to do your work in a more efficient manner, at a cost less than your current spending, would you let him? why wouldn’t you? Well this is how outsourcing works. Now let’s see how this works in the ever-growing demand scenario of healthcare.


It allows medical practitioners to eliminate the tedious yet necessary job of handling administrative tasks and concentrate on patient care while leaving non-core tasks to the outsourcing vendor. One of the most lucrative advantages of healthcare outsourcing is that it helps companies save almost 30% to 60% of the costs that would be otherwise spent on local resources. For example, if medical billing of a hospital is outsourced, the billing service performs the same task at a low price employing skilled workforce, who is ready to take on projects of any size and complexity. This is because the company distributes its expenses across the entire client base providing an economy of scale and those savings are passed on to client. Due to this, the cost of employing excess staff and training them goes down to a great extent because outsourcing partner handles a team of professionals on your behalf.


There are several activities, operations, and tasks which are usually outsourced by healthcare organizations to the companies specializing in IT services and data entry operations. Apart from medical billing and transcription, one of the most common business operations being outsourced today is healthcare app development. In this technologically central era, business apps are necessary for even the health care organizations to improve their reach, enhance their service quality, and deliver vital patient data without hassle.
Further, with the increase in the number of the people enrolling for health plans, insurance companies (payers) wants to reduce operational costs and bring new plans in the market with minimal costs. These companies have adopted the outsourcing model to manage costs due to amplified competition and leverage IT investments of service providers to differentiate their offerings. The major healthcare payer BPO services include member management, provider management care management, claim management.

healthcare bpo market - payer services


Well, where do you get the skilled workforce at a minimum cost across the globe? It’s the nations like India, China and other emerging economies who offer outsourcing services at best bargain. These countries are largely relying on outsourcing from developed nations like USA and EU nations. Typically, in healthcare too.

India – Today its everywhere

Today, customers are not only preferring cost-effective solutions for their outsourced business but also for enhanced productivity, skilled staff, service quality and business process excellence. India, with its large population and multiple-skilled people, would continue to be favoured for both back-end and front-end outsourcing.

The global outsourcing (includes IT and business process sourcing) market is estimated to be in the range of USD 160 billion in 2015. Of this, India’s market share would be around 55%. When it comes to healthcare, pharmaceutical outsourcing market (exclusive of contract manufacturing services) accounts for nearly 75 per cent of the India’s medical process outsourcing (MPO) segment which is currently estimated at $5 billion. While the payer outsourcing market constitutes $700-900 million of India’s Medical Outsourcing market, the provider market accounts for the remaining share of about $100-200 million. With capabilities of Indian BPO vendors growing day by day, they now offer specialized services across different verticals, thereby enabling growth in targeted BPO services.

healthcare bpo outsourcing infographic

Well, on the flip side……

The competition from leading healthcare BPO companies in the US is a huge challenge for the Indian vendors. Most of these firms being specialists in the healthcare sector, it helps them to avail gamut of services unlike the Indian vendors whose presence in the medical field is limited at present. The Philippines and other low-cost locations are also emerging as a big challenge to the Indian BPO industry, including the healthcare vertical. The Philippine’s current 250,000 nursing graduates gives the country a sole advantage. With suitable training, this factor alone could drive the country to gain universal leadership in the healthcare services industry. Even China is becoming more attractive with its recent devaluation of Renminbi and advances in educational skills and cultural adaptability.

According to Market Data Forecast’s analysts, Southeast Asia, South America, and Eastern Europe too are expected to grow at aggressive pace in the near term. The combination of human capital development programs, promotions activities and aggressive marketing, IT and related infrastructure development, as well as strong assurance of industry stakeholders – were some of the developmental levers taken by IT-BPO stakeholders in these regions.

To find out more on the Business Process Outsourcing market in the healthcare domain, checkout Market Data Forecast’s comprehensive research report “Global Healthcare BPO market” equipped with exhaustive segmentation, wide ranging geographical analyses complete with list of the drivers and restraints, company profiles, competitive landscape, strategic analysis and investment opportunities. Contact now for your free research sample and subscribe to our newsletters to make your decisions researched and well-versed.

Leave a Reply

Your email address will not be published. Required fields are marked *