India’s pharmacy portal Pharmabiz.com highlights a new market study completed by technology research firm Frost & Sullivan. The study, which analyzes the European healthcare IT professional services market, reveals that the market earned revenues of $1.58 billion in 2011 and estimates this to reach nearly $1.93 billion in 2017.
The report covers consulting, training, integration and implementation. Additionally, it also covers support and maintenance services.
Findings highlight that the adoption of IT professional services are being hampered by budget cuts and end user reluctance to invest in such services due to shrinking budgets. As a result, several changes are taking place in the marketplace. These include consolidation and the adoption of inorganic growth models.
Commenting on the study, Frost & Sullivan’s Research Analyst Somsainathan C K, said, “Hospitals are now increasingly dependent on IT solutions to support their day-to-day operations, reduce human errors, limit operational costs and stay ahead in terms of technology. As the penetration of healthcare IT rises, hospitals are investing in professional services to optimize the use of these solutions.” He added, “the hospitals, now more than ever before, are recognizing the importance of using the right communication and technology solutions turning to healthcare IT professionals to select the models best suited to their needs.”Another factor driving the growth of IT professional services in healthcare is the need to boost efficiency and lower costs. As a result, the study suggests that it will have a beneficial impact on the training segment in particular because new technology means the hospital staff must be trained to use the upgraded equipment. But, the continuing challenge for market participants remains the shrinking healthcare budgets.
Thus, the industry is looking for cost-effective solutions that promote clinical and cost efficiencies, according to Frost & Sullivan. Similarly, the study recommends cost optimization as a top priority for the IT service providers.
“Newer architecture and delivery models, such as cloud services will revive the market for healthcare IT professional services in the near future, as more and more hospitals are looking to improve their technology set up. Ultimately, the need to reduce costs through the effective use of technology and the optimum utilization of financial resources will help in improving the penetration rate of IT professional services in Europe,” concluded Somsainathan.
Edited by Jamie Epstein