Health IT outsourcing to grow to $68.3B by 2020

Outsourcing for healthcare technology will grow in the next four years, and is set to reach $68.3 billion by 2020, according a report from Everest Group.

Such growth will be propelled by providers looking to make up "for their historical lag in technology adoption," Abhishek Singh, practice director at Everest Group, said in an announcement.

In addition, providers will need to increase IT investments to meet regulatory requirements, and adapt to changes in the industry such as the convergence of payer-provider groups and the push for a more consumer-centered experience.

"Patient engagement and population health management have become the predominant mandates being actualized by healthcare providers through technology," the report's authors write.

North America also will continue to be the strongest region when it comes to health IT outsourcing, with more than $9 billion worth of outsourcing contracts to be renewed between 2016 and 2020, according to the report.

A Black Book survey published in November supports the Everest Group's findings, with 81 percent of healthcare organizations responding that IT outsourcing would be a priority for them in 2016. Almost 70 percent of CIOs were in support of outsourcing for mobile solutions, and are turning to electronic health records for big data support, predictive analytics and claims management.

To learn more:
- here's the announcement
- get the report