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Indian healthcare companies to spend $1 billion in 2013 on IT: Gartner

MUMBAI: Healthcare providers in India are expected to spend USD 1 billion on IT products and services in 2013, an increase of seven per cent over 2012, research firm Gartnertoday said.

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The forecast includes spending by healthcare providers (includes hospitals, ambulatory service and physicians’ practices) on internal IT (including personnel), hardware, software, external IT services and telecommunications.

“IT services, that include consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category through 2017, the forecast period within the healthcare providers sector,” Gartner Research Director Anurag Gupta said in a statement.

IT services are expected to grow 6.9 per cent to reach USD 276 million USD in 2013 from USD 258 million in 2012, up 12.4 per cent. Internal services (salaries and benefits paid to the information services staff of a firm) is expected to grow 14.5 per cent in 2013, it said.

The information services staff includes all company employees that plan, develop, implement and maintain information systems.

Software is forecast to achieve a growth rate of 11 per cent in 2013 to reach USD 98 million USD in 2013, up from USD 88 million in 2012, led by expansion in vertical specific software.

Hospital information systems, picture archiving and communications systems, electronic health records and mobile technologies will be high on the agenda of these providers, the research outfit said.

“We expect to see providers benefit by offering cost effective business models which show quick returns on capital by leveraging the Nexus of Forces (cloud, mobility, big data and social) and improving patient coverage and quality of care,” Gupta said.

Growth of health insurance will catalyse technology adoption in healthcare provider segments, he added.

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