Healthcare BPO sector facing competition from US & Philippines: Study
Updated: Sep 14, 2015 02:08:49pm
New Delhi, Sept 14 Players engaged in business process outsourcing (BPO) in healthcare sector in India are facing stiff competition from their Filipino counterparts, according to a joint study.
“The Philippines and other low-cost locations are emerging as a big challenge to Indian BPO industry including the healthcare vertical,” noted the study titled, ‘Medical Process Outsourcing in India,’ jointly conducted by ASSOCHAM and global professional services organisation EY.
Outlining the various growth inhibitors in healthcare BPO market in India, it said privacy is the most critical challenge in outsourcing healthcare processes since personal healthcare information is as private as financial information.
The study highlighted that competition from leading healthcare BPO companies in the US is a big challenge for Indian vendors, since most of them are specialists in the healthcare sector and provide an increased gamut of services as compared to Indian vendors.
To provide outsourcing services to overseas vendors, the Indian vendors need to comply with international standards of security and privacy, since this can result in business being attracted or lost, it said.
Another challenge in this industry is the fact that global/local service providers with IT and BPO capabilities and with the capability to provide integrated solutions, with big data/analytics capabilities and high investment in this area are likely to have an advantage over pure-play BPO vendors.
The study pointed out that rising salary levels, inflationary pressure on overall cost of infrastructure, fluctuating exchange rates and infrastructural challenges such as power, broadband connectivity are other challenges that the Indian BPO industry is faced with.
Although India has grown as a preferred outsourcing destination for healthcare BPO services, several concerns regarding policy framework in terms of tax laws, data privacy laws, intellectual property (IP) protection laws and clinical trial laws exist.
While the government is gradually taking steps to provide more clarity on these laws, the current scenario is adversely impacting the healthcare BPO market in India, it said. (KNN Bureau)
“The Philippines and other low-cost locations are emerging as a big challenge to Indian BPO industry including the healthcare vertical,” noted the study titled, ‘Medical Process Outsourcing in India,’ jointly conducted by ASSOCHAM and global professional services organisation EY.
Outlining the various growth inhibitors in healthcare BPO market in India, it said privacy is the most critical challenge in outsourcing healthcare processes since personal healthcare information is as private as financial information.
The study highlighted that competition from leading healthcare BPO companies in the US is a big challenge for Indian vendors, since most of them are specialists in the healthcare sector and provide an increased gamut of services as compared to Indian vendors.
To provide outsourcing services to overseas vendors, the Indian vendors need to comply with international standards of security and privacy, since this can result in business being attracted or lost, it said.
Another challenge in this industry is the fact that global/local service providers with IT and BPO capabilities and with the capability to provide integrated solutions, with big data/analytics capabilities and high investment in this area are likely to have an advantage over pure-play BPO vendors.
The study pointed out that rising salary levels, inflationary pressure on overall cost of infrastructure, fluctuating exchange rates and infrastructural challenges such as power, broadband connectivity are other challenges that the Indian BPO industry is faced with.
Although India has grown as a preferred outsourcing destination for healthcare BPO services, several concerns regarding policy framework in terms of tax laws, data privacy laws, intellectual property (IP) protection laws and clinical trial laws exist.
While the government is gradually taking steps to provide more clarity on these laws, the current scenario is adversely impacting the healthcare BPO market in India, it said. (KNN Bureau)
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