28 December 2012 | News | By BioSpectrum Bureau
Frost & Sullivan: EU health IT services market to be $1.93 bn in 2017
Frost & Sullivan report: European healthcare IT professional services market earned $1.58 billion in 2011
Singapore: New analysis from Frost & Sullivan titled, 'Analysis of the European Healthcare IT Professional Services Market', highlighted that the market earned revenues of $1.58 billion in 2011 and will reach $1.93 billion in 2017. The research covers consulting, training, integration and implementation as well as support and maintenance services.
Although the need to enhance healthcare delivery is driving the market for IT professional services in Europe, adoption levels are being hampered by budget cuts and end user reluctance to invest in such services. These trends have triggered several changes in the market, including consolidation and the adoption of inorganic growth models. The need of the hour is for cost effective solutions that promote clinical and cost efficiencies. Service providers, on their part, will have to place cost optimisation on the top of their agendas.
Mr C K Somsainathan, research analyst, Frost & Sullivan, said that, "Hospitals are now increasingly dependent on IT solutions to support their day-to-day, 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 optimise the use of these solutions."
"Lower cash inflows have motivated hospital CIOs to revisit investments into IT solutions and services. Simultaneously, the market is being negatively affected by certain pre-conceived end user notions. For instance, some IT services, especially training and consulting, are perceived as adding very limited value to existing IT infrastructure and solutions," he added.
"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," concludes Mr Somsainathan. "Ultimately, the need to reduce costs through the effective use of technology and the optimum utilisation of financial resources will help in improving the penetration rate of IT professional services in Europe".