Medical Process Outsourcing to play key role in Indian BPO industry
Growing demand in healthcare outsourcing will boost the Indian Business Process Outsourcing (BPO) industry, said an Associated Chamber of Commerce and Industry (ASSOCHAM)-Ernst & Young (EY) joint study. The ASSOCHAM-EY joint study report titled ‘Medical Process Outsourcing in India’ noted that the factors like matured medical education system, low cost base and diverse set of BPO providers including local and multinational players are driving outsourcing in healthcare in India. Apart from this, the rising demand for high-end healthcare facilities, well-established medical infrastructure training centers, are among other factors that are contributing to the growth of healthcare and life sciences industry in India, thereby, fuelling the domestic demand for medical process outsourcing, it added. The report further informed that the recent moves like US regulation on Patient Protection and Affordable Care Act (PPACA) together with the proposed introduction of ICD-10 standards, have given real boost to the Indian MPO market. Besides, domestic players are also gradually moving up the value chain in terms of service offerings while maintaining their cost competitiveness, it added. “India has emerged as the second largest destination after the US in the healthcare outsourcing space and the growing ability of Indian players to analyse big data, discover hidden patterns and unknown correlations are driving new service offerings in this market, says Milan Sheth, Partner and Technology industry leader, EY India. Meanwhile, D S Rawat, Secretary General, ASSOCHAM, says that India has been one of the leading destinations for outsourcing and this has been as a result of efforts by health care payers, providers and pharmaceutical companies to move non-core processes to third-party service providers. According to the report a $2.5-3.1 billion pharmaceutical outsourcing market accounts for 75% of India’s Medical Process Outsourcing (MPO) segment, which is currently estimated to be standing at $3.3–4.2 billion. In this regard, the study suggests Government of India to focus on data privacy laws, introducing proper regulations around intellectual property and patent laws, and give a boost to education to help bridge the skill gap, in order to further boost Indian MPO industry.
June 25, 2015 | 7:41 pm IST.
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