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Healthcare IT Outsourcing & How It Works

Global spending in public and private healthcare fell by 2.2% in 2020, according to the 2021 Deloitte Global Healthcare Outlook. Like other industries, the field of healthcare is also struggling to manage its finances while trying to balance IT maintenance. No doubt, information technology has enabled this sector to transform its operations into more scalable, flexible, reliable, effective, and secure systems.

The necessity of balancing financial concerns and staying up to date with critical IT infrastructure is one reason behind the rising demand for IT outsourcing in the healthcare industry. Healthcare IT outsourcing refers to hiring a selected team of specialists from an IT agency to fulfill IT requirements. This emerging business model has gained huge success in recent years. Especially since the outbreak of COVID-19, the global healthcare IT outsourcing market is expected to reach 390.7 billion USD by 2024, representing a growing and competitive segment of the IT world.

Today, about 75% to 80% of healthcare facilities opt for IT outsourcing. 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%.

  • 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 coding and billing, medical transcription, insurance claim processing, virtual assistants, and customer support.

  • In the second quarter of 2020, cloud-based outsourced healthcare IT services increased by 11% due to the benefits of scalability and remote care (Deloitte Global Healthcare Outlook 2021).

80% of medical bill errors lead to a loss of $125 billion every year. This can be avoided with outsourced IT services (Huffington Post).

Why Should Healthcare Facilities Opt for IT Outsourcing?

According to the 2020 Deloitte Global Outsourcing Survey, clients’ outsourcing objectives include technology enablement, agility, scalability, innovation, and much more. 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 a 2017 McAfee report, the healthcare sector saw a 67% increase in malware, increasingly becoming the target of cybercrimes. Furthermore, HIPAA requires robust data security, and healthcare organizations must maintain compliance to avoid getting penalized. 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.

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.

Why Plexteq?


Plexteq developers have created more than 20 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.


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