New IDC MarketScapes Evaluate U.S. Healthcare Payer Business Intelligence (BI) Consulting and Outsourcing Services
16 Sep 2015
Increased demand for payer BI services driving competition and investment
FRAMINGHAM, Mass., September 16, 2015 – U.S. healthcare payers are investing at high rates in business intelligence (BI) tools and services in order to respond more effectively to their operational needs and competitive challenges. Advances in technology, such as predictive analytics, have made BI tools and associated services more effective and economical, especially within the context of growing volumes of structured and unstructured data. The IT service providers that support BI capabilities are often playing highly strategic roles that extend across the payer enterprise. To help healthcare leaders effectively evaluate the top IT services vendors in the hotly contested market, IDC Health Insights today unveiled two new IDC MarketScape reports:
IDC MarketScape: U.S. Healthcare Payer Business Intelligence Consulting Services 2015 Vendor Assessment (Doc #HI257349). Vendors evaluated include: Accenture, Cognizant, Dell, Deloitte, KPMG, Optum, and PwC.
IDC MarketScape: U.S. Healthcare Payer Business Intelligence Outsourcing Services 2015 Vendor Assessment (Document# HI257358). Vendors evaluated include: Accenture, Cognizant, Dell, HCL, Infosys, KPMG, and Optum.
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Evaluating the US Healthcare Payer BI Consulting Services Vendors
According to this report, the IDC MarketScape Leaders are successfully going to market with hybrid offerings. The Leaders are investing in capabilities that combine software and services focused on clinical and financial use cases related to specific therapeutic areas, value-based care delivery, and consumer engagement. Hybrid offerings utilize software tools that can be reused or easily adapted for use in multiple client engagements. In individual engagements, both payers and consultants stand to benefit from an increase in leverage of the consulting resources. Hybrid offerings make it possible for payers to increase the value derived from their consulting spend, while consultants stand to increase the leverage and profitability of each of their client-facing resources. Across many dimensions of individual engagements and on-going relationships, payers and their service providers stand to improve the cost and quality of output of their BI systems.
Evaluating the US Healthcare Payer BI Outsourcing Services Vendors
In the payer IT outsourcing market broadly, the public announcement of large outsourcing contracts has been declining since 2009. However, demand for smaller (usually unannounced) payer BI outsourcing contracts is very healthy. IDC Health Insights estimates that spending for IT outsourcing related to business intelligence by health insurance carriers will grow 15-18% from 2014 to 2016. According to the report, competitive advantage belongs to those payer BI outsourcing firms that demonstrate:
- The capacity to formulate a compelling strategic agenda for payer BI initiatives within the context of transformative industry change.
- The appetite to pursue transformative agendas for payer BI capabilities within the context of established client relationships.
- The scale to attract and retain appropriate personnel to fully staff teams appropriate to the many payer segment BI use cases and technologies.
- The speed to execute quickly on necessary payer BI technology investments, particularly those that are jointly pursued by payers and their technology service vendors.
Competition for payer IT outsourcing contracts is fierce because BI outsourcing contracts are strategic to many payer-vendor relationships. Almost all the largest global IT consulting and outsourcing vendors have identified BI services as an investment priority.
According to Sven Lohse, Research Manager at IDC Health Insights, "Payers are seeing rapid changes in their competitive environment, particularly as they move to value-based reimbursement models and adapt to rapidly changing individual and employer marketplaces. Payers are struggling to adapt their internal business intelligence systems to give C-suite leaders and board members appropriate levels of oversight and control. These needs, in turn, are driving demand for payer BI consulting and outsourcing services. These new IDC MarketScape reports helps payers quickly and cost-effectively evaluate best-of-breed payer BI services offerings."
IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC judgment about the market and specific vendors. IDC analysts tailor the range of standard characteristics by which vendors are measured through structured discussions, surveys, and interviews with market leaders, participants and end users. Market weightings are based on user interviews, buyer surveys and the input of a review board of IDC experts in each market. IDC analysts base individual vendor scores, and ultimately vendor positions within the IDC MarketScape, on detailed surveys and interviews with the vendors, publicly available information and end-user experiences in an effort to provide an accurate and consistent assessment of each vendor's characteristics, behavior and capability.
For additional information about this report or to arrange a one-on-one briefing with Sven Lohse, please contact Sarah Murray at 781-378-2674 or firstname.lastname@example.org. Reports are available to qualified members of the media. For information on purchasing reports, contact email@example.com; reporters should email firstname.lastname@example.org.
About IDC MarketScape
IDC MarketScape reports are the IT industry’s premier vendor assessment tool, providing in-depth quantitative and qualitative technology market assessments of IT suppliers. IDC MarketScapes mitigate supplier risk by providing an accurate and consistent assessment of suppliers’ characteristics, behavior and capabilities.
About IDC Health Insights
IDC Health Insights assists health businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the payer, provider and life sciences industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit www.idc-hi.com, email email@example.com, or call 508-935-4445. Visit the IDC Health Insights Community at http://idc-community.com/health.
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