Healthcare BPO Market worth $468.5 billion by 2026 | CAGR: 9.6%

2022-06-23 12:53:29 UTC | Healthcare & Pharmaceuticals
Healthcare BPO Market worth $468.5 billion by 2026 | CAGR: 9.6%

Healthcare business process outsourcing allows healthcare facilities to contract their non-core activities to an external party and focus on their core competencies. Growth of this market is attributed to the growing outsourcing in the pharma and biopharma industries, need to curtail the escalating healthcare costs, rising demand for niche services (including care management and fraud detection services), and the need for structured processes and documentation in the healthcare industry.

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Growth in this market is primarily driven by the need to reduce rising healthcare costs and the implementation of the Patient Protection and Affordable Care Act (PPACA) are compelling payers and providers to outsource their business processes to low-cost countries in order to reduce their operational costs.

The global healthcare BPO market is projected to reach USD 468.5 billion by 2026 from USD 296.4 billion in 2021, at a CAGR of 9.6% during the forecast period.

The major source geographies that primarily outsource most of their non-core activities to third parties include North America, Europe, and Rest of the World.

The COVID-19 pandemic has had a significant impact on the world’s population and economy. As a result of the pandemic, healthcare facilities are facing immense pressure to create a well-coordinated environment where all clinical functions are connected internally and where the organization operates in coordination with other healthcare units. This is compelling healthcare organizations to outsource their non-core functions, including revenue cycle management, claims management, and patient engagement, among other functions, to third parties and focus on their core competencies for better patient outcomes.

Revenue cycle management services to register the highest growth in the Healthcare BPO market

Based on type, the Healthcare BPO market is segmented into revenue cycle management, patient enrollment, and patient care. The revenue cycle management services segment is expected to account for the largest share of 70.8% of the healthcare BPO market in 2021. The declining trend in reimbursements in the healthcare industry, reductions in overall healthcare costs, initiatives undertaken by governments for implementing revenue cycle management solutions, and increasing expenditure by the healthcare IT industry are the key factors driving the growth of the revenue cycle management services market.

Manufacturing services to account for the largest segment in the Healthcare BPO market

Based on type, the Healthcare BPO market is segmented into manufacturing, R&D, and non-clinical services. The manufacturing services segment is expected to account for the largest share of 55.6% of the healthcare BPO market in 2021. This can be attributed to the constantly changing regulations on testing and clinical trials, the need to reduce overall operational costs and increasing focus on accelerating the drug development process while maintaining high levels of safety and control.

North American healthcare BPO market to register the largest and highest growth from 2021 to 2026

North America dominated the healthcare BPO market, with a share of 48.6% in 2020, and is expected to register the highest CAGR of 10.6% during the forecast period. The large share of the North American market can be attributed to the increased pressure to reduce healthcare costs and improve services and changing government regulations in the healthcare industry. Growing need for costs curtailment and process efficiencies among pharmaceutical companies is further expected to boost the market growth in coming years.

Some of the prominent players operating in the Healthcare BPO market are Accenture (Ireland), Cognizant (US), Tata Consultancy Services (India), Xerox Corporation (US), WNS (Holdings) Limited (India), NTT Data Corporation (Japan), IQVIA (US), Mphasis (India), Genpact (US), Wipro (India), Infosys BPM (India), Firstsource Solutions (India), IBM Corporation (US), HCL Technologies (India), Sutherland Global (US), GeBBS Healthcare Solutions (US), Lonza (Switzerland), Omega Healthcare (India), R1 RCM (US), Invensis Technologies (India), UnitedHealth Group (US), Sykes Enterprises (US), Parexel International (US), Access Healthcare (US), and Akurate Management Solutions (US), among others

Accenture is the largest player in the healthcare BPO market. Being a pioneer in the healthcare BPO, Accenture has successfully established a brand of its own. The company was founded in 1989 and is headquartered in Dublin, Ireland. The company mainly offers management consulting, technology, and outsourcing services. Accenture provides a variety of services and solutions for strategy, consulting, digital, technology, and operations to deliver end-to-end services and solutions to clients in more than 120 countries across the globe.

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