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Nov 2016 - Business Strategy - Doc # US41829316

Business Strategy: The Outlook for Healthcare Payer Outsourcing Deal Makings Is Positive; Strategic Deals Are on Hold

By: Sven Lohse, Xiao-Fei ZhangResearch Director, IDC Global Services Markets and Trends

Abstract

This IDC study discusses how data on outsourcing deals since 2008 indicates a brightening perspective despite the pall cast by political uncertainty over this highly politicized industry segment. IDC's Services Deals database, our depository of publicly announced BPO outsourcing, IT consulting, and IT outsourcing services, is the basis for our forecasts about payer outsourcing deals for 2016 and beyond. Furthermore, this report offers an update on the healthcare payer outsourcing market in the wake of the vanished megadeal of 2014 between Health Net and Cognizant.

According to Xiao-Fei Zhang, research director, IDC Global Services Markets and Trends, and Sven Lohse, research manager, at IDC Health Insights, "We believe that in 2016 and 2017, we will see further stagnation of large, strategic deal making but continue to see positive growth of smaller, operationally oriented deals." Advantage goes to deeply entrenched incumbent outsourcing vendors signing extensions of existing contracts.


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