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Outsourcing of IT Requirements by Healthcare Organisations Promotes All-Round Benefits, Says Frost & Sullivan
Date:8/5/2009

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"The healthcare IT outsourcing model represents a significant advance in the optimisation of healthcare services," notes Frost & Sullivan Programme Leader Konstantinos Nikolopoulos. "It promotes better and efficient use of hospital resources and, with a wide range of advantages like low up-front capital investment and shorter implementation life-cycles, allows hospitals and healthcare agencies to focus exclusively on their core competencies of providing patient care."

The service provider handles the complexities of hosting and managing various applications or technologies. Factors including spiralling healthcare costs, the increasing complexity of healthcare IT solutions and the difficulties of managing them are set to have a major impact on the European outsourcing market for healthcare IT.

One commonly cited reason for not outsourcing enterprise applications or infrastructure is the need for long-term contracts and the fear of commitment. This generally stems from a number of factors including negative coverage pertaining to loss of jobs, quality of work and the fear of ceding control, together with concerns about the security and location of the provided services.

"High-profile failures (for example, the prominent failures of several IT service providers to deliver on time for key government agencies) can foster the idea that 'it is better to do it in-house'," explains Nikolopoulos. "Although attitudes are changing towards working with service providers as the benefits associated with outsourced services become better understood, widespread acceptance is still far away."

Hospitals are constantly trying to reduce prices in an attempt to buy the latest technology with their limited budgets. The costs of implementation will vary significantly depending on factors such as the organisation's size, the complexity of its inf
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SOURCE Frost & Sullivan
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