The report said that less than one in 10 of health plan IT executives are considering full or end-to-end off-shored solutions. However, the Black Book report was able to show that health plans are budgeting at least 20 percent increases in outsourcing spends for 2016 for service models and functions including application support, desktop support, and help desk support. Nearly 80 percent of larger health plans could turn to outsourced vendors for help desk support in the next 12 months, the survey found.
It is expected that security and privacy projects, and cloud initiatives will grow over 50% of all new outsourcing business initiatives for 2016 in managed care organizations. Payers will soon focus on three additional outsourcing areas by 2016: comprehensive software in core administration, care and network management, and constituent engagement. It expects that by 2018, half of all health plans will demand substantial risk sharing with their outsourcing providers as operational efficiency will become critical at four in 10 of the nation's small health insurers and plans, resulting in the development of more intense data-driven payer strategies.
Doug Brown, managing partner of Black Book Research Group said, "Changing government regulations are leading insurers to outsource more IT functions including big data and data base management, analytics as a service, mobile applications, population health, and security solutions,"
The fact is, while there are many business which began to utilize IT outsourcing since the 1990s, the healthcare sector was not quick to embrace the idea. Brown remarked, "The decision health insurance companies have been among the slowest to adopting outsourcing. However, shrinking margins, higher claim disbursement, and increasing competition have forced health insurers to look at outsourcing at this point in time to prove efficiencies and focus resources toward the core functions of product development and innovation."
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