Cost cutting in U.S. to drive BPO healthcare business

By Bijoy Anandoth Koyitty - Analysis

BANGALORE (Reuters) - Outsourcing of healthcare services is expected to gain momentum as the prolonged slowdown forces U.S.-based government agencies and healthcare firms to cut spiraling costs and deal with a shortage in qualified personnel.

Companies such as Affiliated Computer Services (ACS.N: 株価, 企業情報, レポート), Cognizant Technology Solutions (CTSH.O: 株価, 企業情報, レポート), Convergys (CVG.N: 株価, 企業情報, レポート) and Genpact (G.N: 株価, 企業情報, レポート), whose customers include hospitals, insurers and the Federal government, are expected to gain from the trend.

Business process outsourcing firms that offer healthcare services handle claims administration, supply chain logistics, finance and accounting, billing, human resources management and customer relations.

"Health clients have an accelerated case in which to utilize outsourcing in many facets of their business," said Christine Kowalczyk, vice president, healthcare, at Convergys.

As per its January 2009 estimates, technology research firm IDC expects U.S. BPO services in healthcare to reach $5.3 billion in 2012, at a compound annual growth rate of 14.6 percent from 2007 levels.

Spending for BPO services in 2009 is expected to be $3.5 billion.

Even smaller BPO firms WNS Holdings (WNS.N: 株価, 企業情報, レポート), Syntel (SYNT.O: 株価, 企業情報, レポート) and ExlService Holdings (EXLS.O: 株価, 企業情報, レポート) are expected to gain from this trend.