Outsourcing Times

November 17, 2004

Health Care Providers Can Save by Outsourcing

A new study by Gartner concludes that health care providers who are not offshoring are missing out on a chance to save some serious cash.

According to InfoWorld:

Offshore outsourcing of some functions not directly related to patient care can deliver savings of 20 percent or more, said John Lovelock, a health care analyst with Gartner Inc. Gartner estimates health care organizations save an average of about 23 percent on outsourcing contracts, including IT and non-IT outsourcing, with some organizations seeing savings up to 45 percent on some outsourcing contracts, said Lovelock, who spoke at the Gartner Healthcare IT Summit in Baltimore.

Gartner estimates that healthcare organizations will spend 16 percent of their external services budgets on business process outsourcing during 2004, and the IT-focused research firm expects that number to grow in coming years, Lovelock said in an interview.

Read more: Analyst: Outsourcing can save costs in health care

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November 17, 2004 in Management | Permalink

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