AUSTIN, TEXAS – The global healthcare BPO market is expected to surpass $741.70 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 9.61% during the forecast period from 2024 to 2031, according to SNS Insider, a market research company. The market was valued at $355.98 billion in 2023.
Major companies profiled in the report include Accenture, Cognizant, HCL Technologies, IBM Corporation, Infosys BPO, Omega Healthcare, Tata Consultancy Services, UnitedHealth Group, and Wipro.
Rising demand for outsourced services
The rising cost of medical care is a significant driver for the growth of the healthcare BPO market. Healthcare organizations are increasingly outsourcing business operations to third-party providers to reduce expenses related to staffing, infrastructure, and resource management.
North America dominates the market with a 49% share, primarily due to cost pressures faced by pharmaceutical companies in the US and the adoption of well-established healthcare systems that facilitate outsourcing. Europe holds a 30.6% share, driven by similar factors, while the rest of the world accounts for 20.3%.
Key market segments driving growth
The report identifies three key market segments contributing to growth: provider services, payer services, and pharmaceutical services. Provider services are dominated by revenue cycle management and medical transcription due to the need for timely reimbursements and the increasing use of electronic health records.
Payer services are led by claims management and fraud detection, which are crucial for health insurance payers. In pharmaceutical services, clinical research is the largest segment, driven by ongoing developments in drug development.
Impact of global tensions on market growth
Global tensions and political complexities hinder market growth by disrupting supply chains, delaying product launches, and impeding innovation. Trade restrictions, sanctions, and instability cause material shortages and delays, increasing import/export costs and consumer prices.
Marketing and sales suffer from limited market access, while currency fluctuations complicate competitive pricing.
