The global healthcare information technology (HCIT) outsourcing market is expected to reach $50.4 billion in revenues by 2018 and a compound annual growth rate (CAGR) of 7.6 percent. According to the study, the healthcare systems, pharmaceutical and insurance segments are driving the growth and looking to reduce costs, access IT expertise, share risk, adopt new technologies and focus on their core business.

The largest share of the HCIT market belongs to North America (72 percent), where it is projected to increase to $36 billion by 2018 from $25 billion in 2013. The Asia Pacific region is forecast to reach a CAGR of 8.1 percent, followed by the rest of the world (7.8 percent), North America (7.6 percent) and Europe (7.2 percent).

The report cites healthcare IT outsourcing as an “efficient solution” to the growing demand for quality and affordable healthcare services. HCIT outsourcing is attracting many mid-size businesses as well as established corporations looking to curb healthcare costs and manage back office and IT management cash flow.

Companies are also outsourcing IT to comply with new regulations (including the ICD-10 coding guidelines) set by the U.S. government, meet the demand for unified IT solutions, address the aging population and keep up with medical tourism. Some firms outsource entire information management systems, while other only outsource certain functions, like billing and customer relationship management systems.