Healthcare providers are expected to spend $1.1 billion dollars on health IT products and services in India, a five percent increase over 2013, according to Gartner. The report forecast includes health IT products and services spending by healthcare providers (includes hospitals and hospital systems, as well as ambulatory service and physicians’ practices) on internal services, software, IT services, data center, devices and telecom services.
– IT Services, which includes consulting, implementation, IT outsourcing and business process outsourcing was identified as the largest overall spending category and is expected to reach $300M in 2014.
– Internal Services category (salaries and benefits paid to IT staff) will achieve the highest growth rate among spending categories – expected to reach 18 percent in 2014.
– Health IT software will achieve a growth rate of 8.4 percent in 2014 to reach $98 million in 2014, up from $90 million in 2013.
“India has a new government, and the Ministry of Health will closely examine ways to deliver cost effective healthcare across the country. Delivering wide access to healthcare in an affordable manner will be a top priority for the wider public healthcare system,” said Anurag Gupta, research director at Gartner in the official release. “The organized private healthcare sector will continue its expansion across Tier 2 and Tier 3 cities, as well as niche sectors like maternity and child health. We expect emphasis on eHealth, mobile health, telemedicine, public private partnership and leveraging innovative delivery models.”
The report is available on Gartner’s website at http://www.gartner.com/document/2872317.