Healthcare Providers in India to Spend $1.1 Billion on IT in 2014, says Gartner

With an increase of 5 percent over 2013, healthcare providers in the country are expected to spend $1.1 billion on information technology products and services in 2014, Gartner said on Monday in New Delhi.

According to a statement by Gartner, the forecast includes spending by healthcare providers, hospitals and hospital systems, as well as ambulatory service and physicians’ practices, on internal services, software, IT services, data centre, devices and telecom services.

It stated, "IT services, which include consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category throughout the forecast period within the healthcare providers sector. It is expected to reach $300 million in 2014, up from $280 million in 2013 – with the consulting segment growing 10 percent."

Research director at Gartner, Anurag Gupta said, "India has a new government and the ministry of health will closely examine ways to deliver cost effective healthcare across the country. Delivering wide access to healthcare in an affordable manner will be a top priority for the wider public healthcare system.”

He added that the organized private healthcare sector will continue its expansion across tier II and tier III cities, as well as niche sectors like maternity and child health. “We expect emphasis on eHealth, mobile health, telemedicine, public private partnership and leveraging innovative delivery models," he said.

Internal services will achieve the highest growth rate amongst the spending categories, forecast to be 18 percent in 2014. Internal services refer to salaries and benefits paid to the information services staff of an organization.

Software will achieve a growth rate of 8.4 percent in 2014 to reach $98 million in 2014, up from $90 million in 2013, led by growth in vertical specific software, the statement said.

Gartner is the world’s leading information technology research and advisory company.

(With inputs from IANS)

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