it application outsourcing (ao) in the healthcare provider industry - service provider landscape

7/29/2019 IT Application Outsourcing (AO) in the Healthcare Provider Industry - Service Provider Landscape

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Topic: IT Application Outsourcing (AO) in the Healthcare

Provider Industry Service Provider Landscape

Copyright 2013, Everest Global, Inc.EGR-2013-12-PD-0818

Healthcare OutsourcingReport: February 2013 Preview Deck


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TransactionIntelligence

PricePointService providerIntelligence
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Background of the research The healthcare industry has witnessed a rapid increase in IT and business process outsourcing adoption in recent years.

Regulatory reform, consumerization of healthcare, market consolidation, and emergence of new technologies has acceleratedoutsourcing in the healthcare market. A number and variety of service providers have developed capabilities to cater to thisgrowing market

Healthcare companies are stepping up adoption of outsourced delivery. There is an uptick in the demand for research andmarket intelligence on trends in healthcare outsourcing across the three major market segments payer, provider, and lifesciences. The need is more pronounced for the vertical-specific Application Outsourcing (AO) function, where businesschallenges are driving greater adoption. Everest Groups healthcare outsourcing research program addresses this marketrequirement by analyzing outsourcing trends and service provider capabilities specific to IT AO in the healthcare vertical

In this report, we analyze the capabilities of eight AO 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 providers capability and market success.

We focus on: The landscape of service providers for healthcare provider AO 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 AO 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 application outsourcing Geography: Global Sourcing model: Third-party AO transactions; excludes shared services or Global In-house Centers (GICs)

Background and scope of the research


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This report examines the service provider landscape for large

annuity contracts in the healthcare provider AO 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 InfrastructureOutsourcing (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 ProcessOutsourcing (BPO)

IT strategy / operationsconsulting

Business consulting Infrastructure consulting Infrastructure roll-outs

Consulting

This report assesses IT AO 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


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A number of service providers deliver AO services to

healthcare providers; Everest Group analyzed the capability of

eight service providers with success in large transactions

Service providers assessed

Criteria for inclusion in

the assessment Success in large

provider AOrelationships, i.e.,

Over US$25 millionTCV

Over 3 yearsrelationship duration

Active as of

December 31, 2011 Everest Groups

experience and RFIresponse

Service provider outreach (partial list)

Assessment based on: RFIs submitted by service providers1

Everest Group Transactions Intelligencedatabase

Service provider disclosures and interviews Everest Groups interaction with healthcare

provider AO buyers

1 Assessment for Accenture, CSC, HP ES, and IBM is based on Everest Groups proprietary Transaction Intelligence (TI) database, service providers disclosures, andEverest Groups interactions with healthcare provider AO buyers
http://en.wikipedia.org/wiki/File:Mahindra_Satyam_Logo.svghttp://en.wikipedia.org/wiki/File:Mahindra_Satyam_Logo.svghttp://www.indracompany.com/en


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Table of contents (page 1 of 2)

Background and methodology 5

Summary of key messages 11

Section I: Healthcare provider AO service provider landscape 13

Healthcare provider AO service providers 14

Delivery capability assessment 18

Scale 18

Scope 19

Domain investments 22

Delivery footprint 24

Market success assessment 25

Transaction activity 25

Section II: PEAK Matrix for healthcare provider AO 26

Service provider capability summary dashboard 27

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for provider AO 28

Key characteristics of service providers on the PEAK Matrix 29

Topic Page no.


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Table of contents (page 2 of 2)

Section III: Implications for key stakeholders 34

Implications for buyers 35

Implications for service providers 36

Section IV: Healthcare provider AO service provider profiles 37

Accenture 38

CGI 43

Cognizant 48

CSC 54

Dell Services 60

HP Enterprise Services 67

IBM 72

Mahindra Satyam 78

Appendix 83

Glossary of key terms 84

Healthcare research calendar 86

References 87

Topic Page no.


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This report provides a comprehensive assessment of the service provider landscape for application outsourcing (AO) services in

the healthcare provider industry, and maps the leading service providers on Everest Groups PEAK Matrix. It also includesdetailed profiles of the service providers featured on the PEAK Matrix.

Provider AO serviceprovider landscape

PEAK Matrix forprovider AO

Overview and abbreviated summary of key messages

Analysis of the service provider landscape for provider AO leveraging the Everest Groups PEAKMatrix reveals three distinct categories of service providers: Leaders, Major Contenders, andEmerging Players

Leaders account for a majority of industry revenues from large provider AO deals; they have anextensive suite of proprietary solutions spanning ICD-10 transformation, Health Information

Exchange (HIE), Electronic Health Record (EHR), and health portals Major Contenders and Emerging Players have a relatively smaller scale; their proprietary solutions

include compliance tools, solution accelerators, and health information management tools

Some of the findings in this report, among others, are:

Despite a large number of service providers catering to the global healthcare market, there are onlya handful of players that have achieved success with large-sized (TCV >US$25 million), multi-year(deal duration >three years) AO contracts with healthcare provider clients

The assessed service providers AO activity with healthcare providers is largely concentrated in

North America, particularly the United States All examined service providers have more mature AO relationships with hospitals and large health

systems as compared to other provider subsegments

Implications for keystakeholders

In addition to leveraging IT service providers for earning the IT adoption-linked incentives,healthcare providers need to put in place a robust technology strategy and forge effective, long-term partnerships for executing their IT roadmap

IT service providers need to stay abreast of the rapidly evolving demand and regulatory scenario inthe healthcare provider industry in order to remain relevant in an increasingly competitive market


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This study offers four distinct chapters providing a deep dive

into the healthcare provider AO service provider landscape;

below are four charts to illustrate the depth of the report

AO services scope coverage

Provider AO PEAK MatrixProvider AO market success

Provider AO technology capability

Functional scope of provider AO contracts

ADM

Service provider 1

Service provider 2

Service provider 5

Service provider 3

Service provider 4

Service provider 6

Service provider 7

Service provider 8

Testing ERP and SI Other AO

High Medium LowMeasure of activity

Everest Group Performance | Experience | Ability | Knowledge(PEAK) Matrix for large provider AO relationshipsLarge active provider AO deals

Number of dealsProvider AO revenue growth

2009-11; CAGR (percent)

>20

5-20

20%

10-20%


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This report also features detailed profiles of the service

providers featured on the Everest Group PEAK Matrix for

Provider AO

Source: Everest Group (2013)


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Healthcare outsourcing research agenda

Topic Release date

IT Application Outsourcing (AO) in the Healthcare Payer IndustryAnnual Report 2012 July-2012

IT Application Outsourcing (AO) in the Healthcare Payer Industry Service Provider Landscape July-2012

IT Application Outsourcing (AO) in the Life Sciences Industry Annual Report 2012 September-2012

Application Outsourcing (AO) in the Healthcare Provider Industry Is IT the Cure? Annual Report 2012 December-2012IT Application Outsourcing (AO) in the Healthcare Provider Industry Service Provider Landscape February-2013

IT Application Outsourcing (AO) in the Life Sciences Industry Service Provider Landscape November-2012

Consolidation in the Healthcare Payer-Provider Industry Q1-2013

IT Application Outsourcing (AO) in the Healthcare Payer Industry Annual Report 2013 Q2-2013

IT Application Outsourcing (AO) in the Healthcare Payer Industry Service Provider Landscape Q2-2013

Regulation and Reforms in Healthcare Q2-2013

IT Application Outsourcing (AO) in the Life Sciences Industry Annual Report 2013 Q3-2013

IT Application Outsourcing (AO) in the Life Sciences Industry Service Provider Landscape Q3-2013

Consumerization in Healthcare Q3-2013

Application Outsourcing (AO) in the Healthcare Provider Industry Annual Report 2013 Q4-2013

IT Application Outsourcing (AO) in the Healthcare Provider Industry Service Provider Landscape Q4-2013

SMAC in Healthcare Drivers and Implications Q4-2013

Published Current
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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 Application Outsourcing (AO) in the Healthcare Provider Industry Annual Report 2012 (EGR-2012-12-R-0808); 2012. Thisreport provides an overview of the AO 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 outlook for the coming year. The report alsoprovides an introduction to the service provider landscape for the healthcare provider industry

2. IT Application Outsourcing (AO) in the Healthcare Payer Industry Service Provider Landscape (EGR-2012-12-R-0721); 2012.This report provides an in-depth analysis of the service provider landscape for AO in the healthcare payer segment. It includes PEAKMatrix for Payer AO, analysis of service providers in terms of their delivery capability and market success, and detailed profiles of theservice providers featured on Payer AO PEAK Matrix

3. IT Application Outsourcing (AO) in the Life Sciences Industry Service Provider Landscape (EGR-2012-12-R-0782); 2012. Thisreport provides an in-depth analysis of the service provider landscape for AO in the life sciences segment. It includes PEAK Matrix forLife Sciences AO, analysis of service providers in terms of their delivery capability and market success, and detailed profiles of theservice providers featured on Life Sciences AO PEAK Matrix

For more information on this and other research published by Everest Group, pleasecontact us:

Jimit Arora, Vice President:Mridul Gupta, Senior Analyst:Service Provider Intelligence Team:

Phone: +1-214-451-3110Email: [email protected]

Everest GroupTwo Galleria Tower13455 Noel Road, Suite 2100Dallas, TX 75240

[email protected]@[email protected]

Additional healthcare research references
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it application outsourcing (ao) in the healthcare provider industry - service provider landscape

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