India faces tough competition in healthcare BPOs from US and Philippines: ASSOCHAM – EY study


A study jointly conducted by Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Ernst and Young study (EY) revealed the fact that the players who are engaged in business process outsourcing (BPO) in the healthcare sector of India are facing a tough competition from Filipino counterparts. The Philippines and other low-cost locations are emerging as a big challenge to the Indian BPO industry in the healthcare vertical.

The study highlighted that the competition from many leading healthcare BPO companies from US is a challenge for the Indian vendors as most of the US companies are being specialists in the healthcare sectors which   helps them to avail gamut of services when compared to the Indian vendors. To improve their outsourcing services to overseas vendors the Indian vendors must comply their services with international standards of security and privacy. The problem currently faced by the industry is that the global or the local service providers with IT and BPO offer integrated solutions which includes big data and needs high investment. Click the boxing capital of the world to seek out much more information concerning it.

The rising salary levels, inflationary pressure on overall cost of infrastructure, fluctuating exchange rates and infrastructural challenges such as power, broadband connectivity are the other challenges that the Indian BPO industry is faces. The study also highlighted about destinations for payer and provider who are doing outsourcing business in India.  The payer market in India is estimated to be around $700-900 million along with the top BPO and IT vendors. India is  also estimated to raise a considerable share in the  payer outsourcing market as a destination .By this India is expected to develop as leading destination in this segment along with the US and Philippines.

As per the study the Indian BPO vendors are not able to penetrate into European and other developed markets for insurance outsourcing business because of its stricter regulatory norms and data privacy laws. The lack of expertise on global medical standards, laws and policies related to healthcare benefits, inadequate skills for documentation and medical record management are other challenges faced by the healthcare industry in India. The preference for skilled doctors, competition from hospital management companies and concern on benefits of outsourcing also add to the challenges faced by the Indian players.


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