Health care providers in India are expected to spend $1.1 billion US Dollars (USD) on IT products and services in 2014, an increase of 5 percent over 2013, according to Gartner, Inc. This forecast includes spending by healthcare providers (includes hospitals and hospital systems, as well as ambulatory service and physicians' practices) on internal services, software, IT services, data center, devices and telecom services.
IT Services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category throughout the forecast period within the health care providers sector. It is expected to reach $300 million USD in 2014, up from $280 million in 2013 – with the consulting segment growing 10 percent.
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. The information services staff includes all company employees that plan, develop, implement and maintain information systems. Software will achieve a growth rate of 8.4 percent in 2014 to reach $98 million USD in 2014, up from $90 million in 2013, led by growth in vertical specific software (software applications that are unique to a vertical industry. These are stand-alone applications that are not modules or extensions of horizontal applications).
“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,” said Anurag Gupta, research director at Gartner. “The organized private healthcare sector will continue its expansion across Tier 2 and Tier 3 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.”
Further information on Health care Providers sector IT spending is available in the Gartner report: Forecast: Enterprise IT Spending for the Healthcare Providers Market, Worldwide, 2012-2018, 3Q14 Update. The report is available on Gartner's website at http://www.gartner.com/document/2872317. The forecasts provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.
Gartner, Inc. (NYSE: IT), is the world's leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.
Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We're trusted as an objective resource and critical partner by more than 12,000 organizations in more than 100 countries—across all major functions, in every industry and enterprise size.
To learn more about how we help decision makers fuel the future of business, visit www.gartner.com.
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.