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IT Application Outsourcing (AO) in the Healthcare Provider Industry - Service Provider Landscape
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Healthcare Outsourcing Market Report: December 2013 – Preview Deck Topic: IT Outsourcing in the Healthcare Provider Industry – Service Provider Landscape with PEAK Matrix™ Assessment and Profile Compendium 2013 Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
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This report provides a comprehensive assessment of the service provider landscape for IT outsourcing (ITO) services in the healthcare provider industry. It maps 12 leading service providers on the Everest Group PEAK Matrix and includes detailed profiles of these service providers. This evaluation categorizes the service providers into Leaders, Major Contenders and Emerging Players and also identifies top three services providers as Star Performers, based on their year on year movement on the matrix
Transcript of IT Application Outsourcing (AO) in the Healthcare Provider Industry - Service Provider Landscape
Healthcare Outsourcing Market Report: December 2013 – Preview Deck
Topic: IT Outsourcing in the Healthcare Provider Industry – Service Provider Landscape with PEAK Matrix™ Assessment and Profile Compendium 2013
Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
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1 Banking, financial services, and insurance
Custom research capabilities Benchmarking | Pricing, delivery model, skill portfolio Peer analysis | Scope, sourcing models, locations Locations | Cost, skills, sustainability, portfolio – plus a tracking tool Tracking services | Service providers, locations, risk Other | Market intelligence, service provider capabilities, technologies, contract
assessment
Finance & accounting
Procurement
Human resources
Recruitment process
PricePointTM
Global sourcing
Locations InsiderTM
Contact center
Transaction Intelligence
Healthcare information technology
Information technology
Cloud VistaTM
BFSI1 business process
BFSI1 information technology
Market VistaTM
Global services tracking across functions, sourcing models, locations, and service providers – industry tracking reports also available
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Background of the research
The healthcare industry has witnessed a rapid increase in IT and Business Process Outsourcing (BPO) adoption in recent years. Regulatory reforms, consumerization of healthcare, market consolidation, and emergence of new technologies has accelerated outsourcing in the healthcare market. A number and variety of service providers have developed capabilities to cater to this growing market.
Healthcare companies are stepping up adoption of outsourced delivery. There is an uptick in the demand for research and market intelligence on trends in healthcare outsourcing across the three major market segments – payer, provider, and life sciences. The need is more pronounced for the vertical-specific IT Outsourcing (ITO) function, where business challenges are driving greater adoption. Everest Group’s healthcare outsourcing research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to ITO in the healthcare vertical.
In this report, we analyze the capabilities of 12 ITO service providers specific to the global healthcare provider sector. These service providers are mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success. We focus on: The landscape of service providers for healthcare provider ITO Assessment of the service providers on a number of capability-related dimensions Characteristics of the Leaders, Major Contenders, and Emerging Players on Everest Group PEAK Matrix Implications for healthcare provider ITO buyers and service providers
Scope of this report Industry: Healthcare providers (large health systems, standalone hospitals/clinics, pharmacists, physician practices, and
diagnostic labs) Services: Large (TCV > US$25 million), multi-year (>3 years), and annuity-based IT outsourcing Geography: Global Sourcing model: Third-party ITO transactions; excludes shared services or Global In-house Centers (GICs)
Background and scope of the research
Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
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This report examines the service provider landscape for large annuity contracts in the healthcare provider ITO market
Private health plans Public health plans
Payer
Pharmaceuticals Medical devices Biotechnology Others1
Life sciences
Large health systems Standalone hospitals/clinics Pharmacists Physician practices Diagnostic labs
Provider
Healthcare
Services industry
Traditional IO Remote Infrastructure
Management (RIM) Infrastructure Management
Services (IMS) Cloud
IT Infrastructure Outsourcing (IO)
Applications development Applications maintenance Independent testing Package implementation ERP services Business intelligence / data
warehousing
IT Application Outsourcing (AO)
BFSI-specific BPO HRO FAO PO Contact center Knowledge services
Business Process Outsourcing (BPO)
IT strategy / operations consulting
Business consulting Infrastructure consulting Infrastructure roll-outs
Consulting
This report assesses ITO service providers in the healthcare provider segment with a focus on large (TCV > US$25 million), annuity-based, and multi-year (>3 years) relationships
NOT EXHAUSTIVE Focus of report
1 Includes healthcare data and information services and medical products distribution
Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
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Payer
Life sciences
Provider
Service provider landscape and capability profiles
Each report provides: Mapping of service providers on Everest Group’s PEAK Matrix for the
specific subsegment Capability profiles of service providers capturing their ITO services
experience in specific subsegments. This includes: – Service provider overview: Details of ITO services capabilities, key
investments, proprietary solutions, and technological expertise – Functional and Line of Business (LoB) focus – Transactions overview for ITO services – Delivery footprint
Annual report
Each report provides an overview of the ITO market for the specific healthcare subsegment
Analysis includes the following: – Trends in ITO in the healthcare industry – Market trends and activity for large ITO relationships in the specific
healthcare subsegment – Emerging themes driving ITO in the specific healthcare subsegment – Future outlook for ITO in the specific healthcare subsegment
Payer
Life sciences
Provider
This report is a part of Everest Group’s series of six reports focused on ITO in healthcare in 2012
Focus of report
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A number of service providers deliver ITO services to healthcare providers; Everest Group analyzed the capability of 12 service providers with success in large transactions
Service providers assessed
Criteria for inclusion in the assessment Success in large
provider ITO relationships, i.e., – Over US$25 million
TCV – Over 3 years
relationship duration – Active as of
December 31, 2012 Everest Group’s
experience and RFI response
Service provider outreach (partial list)
Assessment based on: RFIs submitted by service providers1
Everest Group Transactions Intelligence database
Service provider disclosures and interviews Everest Group’s interaction with healthcare
provider ITO buyers
1 Assessment for Accenture, CSC, HP ES, and IBM is based on Everest Group’s proprietary Transaction Intelligence (TI) database, service providers’ disclosures, and Everest Group’s interactions with healthcare provider ITO buyers
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Table of contents (page 1 of 2)
Executive summary 11 Summary of key messages 12 Implications for key stakeholders 15 Section I: Healthcare provider ITO service provider landscape 16 Healthcare provider ITO service providers 17 Delivery capability assessment 21
– Scale 21 – Scope 22 – Domain investments 26 – Delivery footprint 29
Market success assessment 30
Section II: PEAK Matrix for healthcare provider ITO 31 Service provider capability summary dashboard 32 Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for healthcare provider ITO 33 Key characteristics of service providers on the PEAK Matrix 35 Star Performers 42
Topic Page no.
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Table of contents (page 2 of 2)
Section III: Healthcare provider ITO service provider profiles 44 Accenture 45 CGI 50 Cognizant 55 CSC 60 Dell Services 66 HCL Technologies 72 Hexaware 77 HP ES 81 IBM 86 Syntel 92 Tech Mahindra 96 Unisys 100
Appendix 105 Glossary of key terms 106 Healthcare research calendar 108 References 109
Topic Page no.
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This report provides a comprehensive assessment of the service provider landscape for IT outsourcing (ITO) services in the healthcare provider industry, and maps the leading service providers on Everest Group’s PEAK Matrix. It also includes detailed profiles of the service providers featured on the PEAK Matrix.
Overview and abbreviated summary of key messages
Some of the findings in this report, among others, are:
Analysis of the service provider landscape for healthcare provider ITO leveraging the Everest Group’s PEAK Matrix reveals three distinct categories of service providers: Leaders, Major Contenders, and Emerging Players
Leaders typically have over US$300 million in annual revenue from healthcare provider ITO contracts with over 25,00 FTEs engaged in delivering ITO services. They have an extensive suite of proprietary solutions catering to medical data management, EHR, pre-service, operations, and post-services areas of provider functions
PEAK Matrix for healthcare provider ITO
IT service providers’ ITO activity with healthcare providers is majorly concentrated in North America, particularly the United States; however, there are growing instances of contract signings from Europe and APAC
Among the different AO subfunctions, all service providers have strong credentials in ADM and testing Among the IO subfunctions, most service providers have strong credentials in datacenter services, except for
some pure-play application services providers
Healthcare provider ITO service provider landscape
In order to stay ahead of the curve, buyers of IT in the healthcare provider industry need to adopt an audit mechanism to link digitization with growth parameters
Service providers should invest in building a balanced solutions portfolio that caters to a converged model of payers and providers
Implications for key stakeholders
Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
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This study offers four distinct chapters providing a deep dive into the healthcare provider ITO service provider landscape; below are four charts to illustrate the depth of the report
Source: Everest Group (2013)
Share of the ITO services market of the service providers evaluated on the PEAK Matrix
Geographic scope of healthcare provider ITO transactions
Subvertical coverage of the service providers evaluated on the PEAK Matrix
Delivery capability assessment of the service providers
Other service providers
Share of large healthcare provider ITO transactions
2012; In terms of number of transactions
In-scope service providers
Other service providers
Share of large healthcare provider ITO transactions
2012; In terms of Total Contract Value (TCV)
In-scope service providers
In-scope service
providers
Regional scope of provider ITO contracts
North America EMEA APAC LatAm
Service provider 4 Service provider 3
Service provider 5
Service provider 8 Service provider 9
Service provider 11
Service provider 2
Service provider 7
Service provider 10
Service provider 12
Service provider 6
Service provider 1
High Medium Low Measure of activity
Subvertical scope of provider ITO contracts Hospitals Physician practices Pharmacists Diagnostic labs
Service provider 4 Service provider 3
Service provider 5
Service provider 8 Service provider 9
Service provider 11
Service provider 2
Service provider 7
Service provider 10
Service provider 12
Service provider 6
Service provider 1
High Medium Low Measure of activity
Service provider
Delivery capability
1. Scale 2. Scope 3. Domain
investments 4. Delivery footprint
Service provider 1 Service provider 2 Service provider 3 Service provider 4 Service provider 5 Service provider 6 Service provider 7 Service provider 8 Service provider 9 Service provider 10 Service provider 11 Service provider 12
Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
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This report also features detailed profiles of the service providers featured on the Everest Group PEAK Matrix for healthcare provider ITO
ILLUSTRATIVE
Source: Everest Group (2013)
Company X | Healthcare provider ITO profile Key offshore ITO locations
Company X | Healthcare provider ITO profile Corporate and healthcare overview
Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
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Healthcare outsourcing research calendar
Topic Release date
IT Outsourcing in Healthcare Payer Industry – Service Provider Landscape with PEAK MatrixTM Assessment and Profile Compendium 2013 August-2013
IT Outsourcing (ITO) in the Life Sciences Industry – Annual Report 2013: All or Nothing: IT as the Trump Card for Life Sciences October-2013
December-2013
State of the Healthcare & Life Sciences Industry: Future Outlook Q1-2014
IT Outsourcing in Healthcare Provider Industry – Service Provider Landscape with PEAK MatrixTM Assessment and Profile Compendium 2013 December-2013
SMAC in Healthcare – Drivers and Implications Q1-2014
Published Current
Webinar Deck: The Changing Face of IT Outsourcing in the Healthcare Payer Market: Don't Miss the Sailing Ship June-2013
IT Outsourcing in the Healthcare Payer Industry – Annual Report 2013: Taking the Debate Beyond the Reforms Mandate July-2012
IT Outsourcing in Life Sciences Industry – Service Provider Landscape with PEAK Matrix™ Assessment and Profile Compendium 2013 November-2013
Value-chain Digitization in the Pharmaceutical Industry October-2013
Webinar Deck: Value-chain Digitization in the Pharmaceutical Industry Is Causing Tectonic Shifts in ITO Strategy October-2013
IT Outsourcing in Healthcare Provider Industry – Annual Report 2013
Copyright © 2013, Everest Global, Inc. EGR-2013-12-PD-1025
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The following documents are recommended for additional insight on the topic covered in this report. The recommended documents either provide additional details on the topic or complementary content that may be of interest 1. IT Outsourcing (ITO) in the Healthcare Provider Industry – Annual Report 2013: Entering the Big League of IT Adoption
(EGR-2013-12-R-1010); 2013. This report provides an overview of the ITO market for the healthcare provider industry. Analysis includes key trends in market size & growth, demand drivers, adoption & scope trends, emerging themes, key areas of investment, and implications for key stakeholders. The report also provides specific insights on the importance of technology enablement across the healthcare provider value-chain
2. Value Chain Digitization in the Pharmaceutical Industry: IT Outsourcing as the Vehicle to the Evolution of the Pharmaceutical Industry (EGR-2013-12-R-0975); 2013. This viewpoint analyzes the current state and transformational changes occurring in IT adoption in the pharmaceutical industry. The analysis delves into the imperatives and drivers of digitization in the various value chain elements of the pharmaceutical industry
3. IT Outsourcing (ITO) in the Life Sciences Industry – Annual Report 2013: IT is the Trump Card for Life Sciences (EGR-2013-12-R-0959); 2013. This report provides an overview of the ITO market for the life sciences industry. Analysis includes key trends in market size & growth, demand drivers, adoption & scope trends, emerging themes, key areas of investment, and implications for key stakeholders. The report also provides specific insights on the importance of technology enablement across the life sciences value-chain and how digitization is becoming paramount for driving key strategic initiatives in this industry
For more information on this and other research published by Everest Group, please contact us: Jimit Arora, Vice President: Abhishek Singh, Senior Analyst: Nitish Mittal, Analyst:
Phone: +1-214-451-3110 Email: [email protected]
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Additional healthcare research references
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