Seemingly untouched by the worldwide economic downturn, India's healthcare sector is set to spend over US$250 million on IT in 2010. Healthcare in India comprises more than 5% of the nation's GDP and displays a healthy growth rate over the next four to five years. This comes from a study by New York-based Access Markets International (AMI) Partners, Inc., a leading consulting firm specializing in IT and telecom sectors.
“In other words, the stage is set for establishing greater operational efficiencies, compliance with government regulations and uptake of latest technologies”
In particular, the study found, India's private healthcare sector, which currently contributes around three-quarters of the total healthcare expenditure in India, is expected to increase its spending on IT products and services substantially this year. "This industry has indeed proven to be recession-proof in spite of widespread pain, and is poised for further growth and momentum," said Dev Chakravarty, Assistant Manager - Research at AMI-Partners, India. "The extent of automation within this industry is also notable. AMI research indicates that spending on IT products and services is likely to rise at an ambitious 20%+ growth rate next year."
With a growing population, greater awareness of health issues amongst corporate entities and consumers, increasing spending power, and a rise in lifestyle diseases, the demand far exceeds the supply for healthcare. "At a glance, we can see how the entire ecosystem is also evolving," notes Chakravarty. "With the rapid entry of corporate entities in this sector several private sector organizations have made a mark in terms of setting up and managing hospitals."
Private organizations play a significant role in providing healthcare services, especially in the urban sector. This area expects strong financial backing and managerial expertise. With the growth of the India middle class, there is a shift toward private healthcare services. And the health insurance sector is maturing, offering greater scope and reach. India's medical tourism is also booming. "In other words, the stage is set for establishing greater operational efficiencies, compliance with government regulations and uptake of latest technologies," says Chakravarty.
Computing spending drives over half the overall IT spending for this vertical. As hospitals build and upgrade their IT infrastructure, spending on basic computing products will increase. As the healthcare industry matures, there will be a need for enhanced communication amongst doctors for collaboration and information exchange. Not surprisingly, Internet usage has grown over the years, and internet spending makes up approximately 13% of this total market.
The trend towards total automation is also significant. Hospitals of different sizes are striving for total automation through integration software such as Hospital Management/Hospital Information Systems (HMS/HIS). Smaller hospitals use the basic modules such as patient records, patient registration, scheduling, billing, monitoring, inventory management, etc. Larger multi-specialty hospitals are using advanced modules of Hospital Management Systems such as advanced imaging, MIS, and data management to cite a few examples.
AMI Partners' "Market Intelligence on IT Usage within the Healthcare Sector in India" seeks to provide a perspective on growth opportunities in the emerging healthcare vertical for IT vendors. Its objectives are to:
- Provide an outline of the industry background
- Obtain an estimate of the universe-size
- Capture salient trends of IT adoption patterns within the India healthcare sector
- Understand the ISV ecosystem in terms of major players, estimated market shares, etc.
- Provide a snapshot of an opportunity assessment for IT vendors in this sector
The research particularly focuses on IT usage within the private sector - since this is a fast-growing segment. An overview of the government healthcare sector is also provided. This research will help IT vendors (especially those who identify healthcare as a key focus) in fine-tuning their Go-To-Market action plan and in serving the IT needs of the healthcare sector.
Based on AMI's comprehensive survey within various healthcare institutions within India (hospitals, nursing homes, wellness centers, etc.) the study tracks a broad spectrum of issues pertaining to overall market, ecosystem, IT usage and spending by segments, specific IT applications within the vertical, drivers and barriers to greater IT usage, and SWOT analysis of the sector. The study provides a focus on the HMS/HIS software since this is a key application within this vertical.
Access Markets International (AMI) Partners, Inc.