Healthcare IT Outsourcing & How It Works
More than 70% of health system executives named improving process efficiency and productivity a priority in Deloitte’s 2026 Global Health Care Outlook, and 78% named stronger cybersecurity. Like other industries, healthcare is also struggling to manage its finances while balancing IT maintenance. Information technology has enabled this sector to transform its operations into more scalable, flexible, reliable, effective, and secure systems.
The need to balance financial concerns with keeping critical IT infrastructure up to date is one reason for the rising demand for IT outsourcing in the healthcare industry.
Healthcare IT outsourcing involves hiring a team of specialists from an IT agency to meet IT requirements. This business model has seen significant growth in recent years. The global healthcare IT outsourcing market reached $58.3 billion in 2025 and is expected to reach $106.9 billion by 2034, representing a growing and competitive segment of the IT world. For a detailed look at how the market has changed since 2020 and where AI is taking it, see our analysis Healthcare IT Outsourcing in 2026: Stop Moving Admin Work, Start Removing It
The broader healthcare outsourcing market, including billing, claims, and coding, is even larger, valued at $421.2 billion in 2025. If you’re wondering why, then the following statistics will give you a clearer view.
What Is the Impact of IT Outsourcing on the Healthcare Industry?
Here are some interesting facts and figures that illuminate the importance of IT outsourcing for the healthcare industry.
Outsourcing IT in healthcare reduces costs by 30% to 60%.
Improving existing technology could free 240 to 400 hours per nurse per year by removing manual administrative work (Deloitte).
78% of healthcare providers already use AI in revenue cycle management (HFS Research, 2026).
More than 90% of hospitals in the United States have outsourced at least one IT service to optimize their processes (Jonathan Clarke, Assistant Professor of Health Policy and Administration, Penn State University).
The most commonly outsourced IT services in healthcare include managed cloud and infrastructure, cybersecurity, revenue cycle management systems, and scalable IT support (Research and Markets, 2026).
The healthcare IT outsourcing market is growing from $63.84 billion in 2025 to $70.16 billion in 2026, a 9.9% increase (Research and Markets, 2026).
Physicians spend 49% of their office hours on EHR and desk work and only 27% with patients. Much of this can be reduced with outsourced integration and automation services (Annals of Internal Medicine).
Why Should Healthcare Facilities Opt for IT Outsourcing?
According to Deloitte’s 2026 Global Health Care Outlook, about 60% of health system executives say they need to invest in core technologies such as EMR and ERP systems, alongside process efficiency and cybersecurity. But their primary goal is to drive their revenue. Let’s take a look at how outsourcing IT can benefit the healthcare industry.
Lower operational costs
With IT outsourcing, healthcare firms can avoid investing in additional equipment, resources, and infrastructure while still making use of secured and advanced IT facilities. Outsourcing agencies offering IT services to healthcare organizations already have dedicated and technically advanced infrastructure and employees, with the latest market insights. This can lead to immense savings for the healthcare organization.
Cutting-edge tools and resources
Outsourcing companies providing IT services to healthcare organizations know how to best meet their clients’ requirements. Their toolboxes include the best, latest, and most technologically advanced tools and resources on the market.
Wide range of solutions
From mobile app development and maintenance to quality assurance and testing, a company offering outsourced healthcare IT can provide a wide range of tailor-made services and solutions. Describe your problem, and the IT services company will find a way to solve it.
Around-the-clock service
Healthcare isn’t limited to business hours. With the addition of telehealth and virtual care, professionals now provide healthcare services 24 hours a day. This always-on availability demands around-the-clock service. That’s another reason why healthcare companies outsource their IT. With flexible services and 24/7 support, outsourcing firms can offer healthcare IT services whenever they’re needed.
Fool-proof security
With the high volume of sensitive and high-value data, the healthcare industry is vulnerable to cyber-attacks. According to IBM’s 2025 Cost of a Data Breach Report, a healthcare breach costs $7.42 million on average, the highest of any industry for 14 years running.
The 2024 ransomware attack on Change Healthcare exposed 190 million records and showed how much risk sits with technology vendors. Furthermore, HIPAA requires robust data security, and healthcare organizations must maintain compliance to avoid getting penalized. The current HIPAA Security Rule remains fully enforceable, while its proposed overhaul, published in January 2025, is now expected no earlier than July 2027. Making sure organizations meet HIPAA requirements is another cost-saving service that outsourcing IT companies can offer the healthcare industry.
Most firms providing IT service outsourcing for the healthcare industry ensure their clients meet all the standards and regulations of HIPAA in order to avoid legal issues in the long run.
By letting IT outsourcing firms handle the technical aspects of their business, healthcare providers can concentrate on what they do best.
By letting IT outsourcing firms handle the technical aspects of their business, healthcare providers can concentrate on what they do best.
What Is the True Cost of Developing Healthcare Software?
There is no one-size-fits-all approach when developing a custom healthcare application. Healthcare applications are complex by nature and require careful thought in planning and development. Considering the sensitive nature surrounding healthcare applications, they require even more consideration in security, stability, regulatory compliance, and user experience.
To truly gauge the cost of developing a healthcare mobile app, there are several factors to consider:
The technology stack involved with the project
The specific needs of the healthcare organization
Engagement model between client and technology partner – project-based, resource augmentation, or dedicated team
The functionality and complexity of the application
The platforms on which the application will function
Expected development timeframe and budget
How to Effectively Hire a Remote Team for Healthcare Software Development?
Look for a proven track record
When hunting for outsourcing companies, prioritize the ones with expertise in healthcare app development. Shortlist the ones with credible portfolios and projects running live in the healthcare industry. Companies with solid domain expertise are likely to have good feedback from existing clients.
Get a proper project management tool
Investing in a proper PM tool will make sure projects are running smoothly and on schedule. Project managers can improve collaboration with project members and delegate tasks more effectively. PM tools are a great way to keep teams working as per milestones and visually showcase key performance indicators throughout the duration of the project.
Check for fit
With a range of experienced outsourcing partners to choose from, healthcare facilities need to consider the willingness and collaborative spirit of project members involved in the development process. Any project is a team effort and may include in-house and outsourced team members. Team members’ willingness to cooperate with each other is vital for the successful execution of a quality project.
Require open and frequent communication
Organizational culture varies from company to company. Some companies are more open to communication than others. Look for the ones that prioritize frequent communication and have dedicated communication channels set up for timely correspondence to minimize communication-related issues.
Ensure reliability
Look for outsourcing companies that have been in the market for a significant amount of time. Start-ups are not necessarily bad, but they often lack the market maturity to be reliable. Look for companies that have displayed definitive growth over time, with employees and senior management who are easily visible. This can demonstrate the genuineness of an organization and indicate its reliability.
Wrapping Up
Healthcare IT outsourcing is a fast-growing practice being pursued by many institutions. When considering partnering with a custom healthcare software development company, consider ones with solid client feedback, project competence, reliability, and a team of professionals skilled in a range of technologies and IT disciplines. Partnering with the right technology company will eliminate the challenges that come with healthcare app development and allow healthcare institutions to focus on other critical areas and patient care. To learn how outsourcing priorities shifted between 2020 and 2026, and how to remove administrative work rather than just move it, read Healthcare IT Outsourcing in 2026: Stop Moving Admin Work, Start Removing It.
Why Plexteq?
Expertise
Plexteq developers have created more than 30 software solutions for healthcare companies and built a strong skill set including industry-specific knowledge. We will help you develop your project from scratch, improve the quality of medical service, and implement technologies to optimize workflow.
Experience in developing HIPAA-compliant software
The HIPAA compliance of developed software is crucial to a successful product launch and implementation. We are familiar with the standards related to the healthcare industry and will conduct thoughtful testing to ensure your software meets them.
Market maturity
We help our customers in the healthcare industry successfully fulfill their mission: to save lives and take care of the health of their patients. We have been developing individual applications for healthcare for over six years, supporting health facilities, hospitals, clinics, and assisted living facilities.
