How Has the Healthcare Business Process Outsourcing BPO Market Evolved Historically and What is its Current Size?
The healthcare business process outsourcing bpo market has seen considerable growth due to a variety of factors.
• The business process outsourcing (BPO) market in the healthcare sector has seen a swift expansion in its size in the past few years. The forecasted growth is from $321.15 billion in 2024 to $356.65 billion in 2025, indicating a compound annual growth rate (CAGR) of 11.1%.
The historical growth can be traced back to cost-effectiveness and operational streamlining, increasing needs for specialized services, concerns related to data security and patient privacy, the transition towards value-based healthcare models, and effects of globalization in the medical field.
What is the Forecasted Market Size and CAGR for the Healthcare Business Process Outsourcing BPO Market?
The healthcare business process outsourcing bpo market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of the healthcare business process outsourcing (BPO) is predicted to experience significant growth in the upcoming years, reaching $554.8 billion by 2029, advancing at an 11.7% compound annual growth rate (CAGR). This anticipated growth during the forecast period can be credited to the introduction of improved patient-oriented solutions, multinational expansion and polyglot services, increase in demand for remote services post-COVID-19, the emergence of value-based care models, and an increased emphasis on data security. Upcoming trends for the forecast period encompass a focus on customer experience and patient involvement, strategic alliances and cooperation, the globalization of healthcare services, the implications of the COVID-19 pandemic, and the transition towards value-based care models.
What Key Factors and Trends Are Driving The Growth Healthcare Business Process Outsourcing BPO Market?
The upsurge in the development of new medications is anticipated to fuel the expansion of the healthcare business process outsourcing (BPO) market. Drug development entails the discovery, research, testing, and marketing of new medicinal products for treating, preventing, or managing health conditions. Healthcare BPO companies play a vital role by assisting pharmaceutical organizations in handling the intricate tasks of drug development, regulatory adherence, and market reach, thereby making the drug development procedures more efficient and effective. For example, in 2022, the Government of Canada reported on its official website that more than 9,000 new medicines were in different phases of clinical development, an increase from almost 8,500 the previous year. Therefore, the surge in drug development is leading to the growth of the healthcare BPO market. The growth of healthcare BPO market is being propelled by the mounting concerns over data breaches. A data breach refers to the unauthorized access, sharing, acquisition, or revelation of confidential or sensitive information. To ensure the integrity and privacy of patient data, Healthcare BPO providers have adopted stringent data handling procedures and security measures. As per the Office for National Statistics, a UK-based government body, in September 2022, the average worldwide cost per compromised record in a data breach was $164, signifying a 1.9% increase from $161 in 2021. Thus, the rise in data threats is accelerating the expansion of the healthcare business process outsourcing market.
What Are The Market Segments In The Healthcare Business Process Outsourcing BPO Market?
The healthcare business process outsourcing (BPO) market covered in this report is segmented –
1) By Service Type: Provider Outsourcing Services, Payer Outsourcing Services, Operational Outsourcing Services, Information Technology Infrastructure Management Services
2) By Provider Service: Revenue Cycle Management, Patient Enrollment, Patient Care
3) By Payer Service: Claims Management, Product Development And Business Acquisition, Member Management, Provider Management, Care Management, Integrated Front-End Services And Back-Office Operations, Billing And Accounts Management Services, Human Resources (HR) Services
4) By Solution: Manufacturing, Research And Development, Non-Clinical Services
5) By End User: Healthcare Providers, Healthcare Payers, Other End-Users
Subsegments:
1) By Provider Outsourcing Services: Medical Billing And Coding, Revenue Cycle Management, Patient Scheduling And Registration, Telehealth Services
2) By Payer Outsourcing Services: Claims Processing, Member Enrollment And Eligibility Verification, Fraud Detection And Prevention, Customer Support Services
3) By Operational Outsourcing Services: Human Resources Outsourcing, Procurement And Supply Chain Management, Facility Management Services, Administrative Support Services
4) By Information Technology Infrastructure Management Services: IT Help Desk Support, Cloud Services Management, Network Management, Data Security And Compliance Services
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How Are New Trends Impacting The Size Of The Healthcare Business Process Outsourcing BPO Market?
Major healthcare BPO market players are incorporating AI platforms like the AGS AI Platform to enhance the efficiency and output of their revenue cycle management (RCM) processes. The AGS AI Platform is an AI-enabled solution aimed at enhancing healthcare institutions' RCM processes. In September 2022, for example, AGS Health LLC – an analytics-fueled, tech-enabled US organization – introduced its AI platform for a comprehensive RCM process named the AGS AI Platform. This platform is engineered to streamline RCM systems within healthcare entities and elevates their efficacy. The platform capitalizes on multiple AI systems, such as machine learning, natural language processing, and predictive analytics, to automate duties, detect patterns and trends, and provide recommendations. Furthermore, this platform can contribute to bettering patient experience by curtailing wait times, ensuring easier payment, and promoting profitability.
Who Are the Key Players In The Healthcare Business Process Outsourcing BPO Market?
Major companies operating in the healthcare business process outsourcing (bpo) market report are:
• UnitedHealth Group Incorporated
• Accenture PLC
• International Business Machines Corporation (IBM)
• Tata Consultancy Services Limited
• Cognizant Technology Solutions Corporation
• IQVIA Holdings Inc.
• Quintiles IMS Holdings Inc.
• HCL Technologies Limited
• Infosys Limited
• Wipro Limited
• DSM Pharma
• Sutherland Global Services Inc.
• Xerox Holdings Corporation
• Genpact Limited
• Access Healthcare Services Pvt. Ltd.
• Parexel International Corporation
• R1 RCM Inc.
• NTT Data Corporation
• EXLService Holdings Inc.
• Sykes Enterprises Incorporated
• WNS Limited
• Firstsource Solutions Limited
• Invensis Technologies Pvt. Ltd.
• Omega Healthcare Investors Inc.
• Hinduja Global Solutions Limited
• Mphasis Limited
• GeBBS Healthcare Solutions Inc.
• Akurate Management Solutions Pvt Ltd.
• Gevity Consulting Inc.
• Octopus Tech Solutions Pvt Ltd.
What Are The Regional Insights Into The Healthcare Business Process Outsourcing BPO Market?
North America was the largest region in the healthcare business process outsourcing (BPO) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the healthcare business process outsourcing (bpo) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
