Published Date : 2025-Mar-19
The Global Healthcare BPO Market is experiencing significant growth, driven by rising healthcare costs, increased outsourcing of non-core functions, and the demand for efficient medical data management. Key services in this sector include medical billing, claims processing, revenue cycle management (RCM), and IT support.
According to IMIR Market Research Pvt. Ltd., the healthcare BPO market is projected to grow at a CAGR of 10.84% in 2025, with North America leading the market, followed by Europe and Asia-Pacific.
Some of the key players in the market are TCS (India), Cognizant (US), Infosys BPM (India), Accenture (Ireland), IBM Corporation (US), Wipro (India), IQVIA (US), and WNS (Holdings) Ltd. (India).
As technology has emerged, industry players have been dedicated to making more revenues and becoming more cost-efficient in utilizing the newest innovations to provide better models for providing medical care that can be employed to counteract some of the issues related to patient experience, quality, cost, accessibility, and convenience throughout the care continuum. This is driving the healthcare BPO industry to expand from 2025 to 2034 at a compound annual growth rate (CAGR) of 10.84%.
The most prominent nations in this market are the U.S., China, India and Japan, followed by Germany, France and Italy (in ROW) due to increased adoption of newer technologies for the betterment of operational efficiency, level of quality and customer satisfaction through better infrastructure management tools that would help organizations enhance their strategic decisions.
Pharma and medical device manufacturing companies are investing in R&D activities to create high-level technologies that would enable companies to enhance the operational efficiency of their entities by minimizing human effort. The function of BPOs is becoming more prominent as a result of automation, which in turn is making firms invest in process improvement programs across these industries. Industry participants are emphasizing the application of standard operating procedures (SOPs) through the assistance of new generation technologies such as machine learning (ML), artificial intelligence (AI), cloud computing, robotics, digital robotic assistants etc., among others. These technologies can be utilized by service providers to automate intricate business processes across geographies (in ROW) and augment their business processes. With the advent of new digital technologies, organizations are looking to enhance patient care experience through delivering improved preventive, diagnostic and treatment solutions for disease condition management like cancer.
The principal customer in most healthcare BPO transaction is generally a health insurance firm or an employer group. Customers are looking for efficiency gains like reduced turnaround time on delivering care to patients or reduced administrative costs through more efficient processes. To achieve these benefits, customers look for outsourced providers who will do the work more efficiently than the in-house staff.
The medical landscape is changing, and the expectations of the provider and consumer are changing along with it. Reform waves that have been sweeping across the healthcare environment for more than a decade are affecting how, where, when and why individuals are treated by their insurance firm or employer. Health benefits managers need to ensure that they deliver the appropriate services at a price that is competitive and address the new consumer value and convenience expectations. In response to these problems, health benefit administrators need a trusted partner who can navigate today's labyrinth and provide flexible solutions that improve quality processes across the board.
Healthcare BPO market players usually deal with clients face-to-face in their own offices. This contributes to the value that they can provide by being able to react to issues quickly with an onsite presence. Service level agreements also allow them to keep their end of the bargain when it involves creating proper reports or offering custom applications.
Artificial intelligence (AI) is now experiencing an unprecedented amount of attention, which has not only swept the industry off its feet but also propelled it to a new frontier. While healthcare BPO industry is in its infancy, it will surely see tremendous growth in the years to come due to the growing application of AI-based healthcare solutions. The healthcare BPO industry will be fueled by the need of healthcare providers to lower operational expenses and minimize risks while providing quality healthcare. Moreover, technological innovation with the help of AI can enhance and effectiveness of healthcare services while maintaining patient care.
For healthcare institutions, the healthcare BPO services are providing cost-effective means which can impart expertise in healthcare processes to their own employees. For healthcare providers, healthcare BPO service providers are providing end-to-end business process solutions to bring effective coordination to multiple service lines and geographies. These third-party vendors' healthcare BPO services assist the healthcare organizations to improve quality of patient care with high operational efficiency and adherence to industry regulations.
Approximately one-third of healthcare industry data breaches result in medical identity theft, largely due to poor staff training, outdated rules and procedures or failure to follow existing ones, absence of internal control over patient data, and absence of top-management support. Patient confidentiality is therefore a significant issue in the healthcare sector. But with the rising number of paid healthcare claims and the healthcare data breach statistics in healthcare, healthcare insurance firms are constantly augmenting their healthcare BPO expenditure to avoid healthcare data breach. With rising healthcare BPO expenditure, healthcare providers are likely to feel risks related to the healthcare data breach statistics which will further boost their healthcare BPO expenditure. The advent of artificial intelligence-driven drug discovery tools is also fueling the use of BPO in the worldwide healthcare sector.
Global healthcare BPO market is experiencing a significant growth in the spending related mainly to three aspects (1) Use of technologies like big data and analytics allows healthcare organizations to track and quantify performance; (2) Transition from paper-based systems to regionalized facilities necessitate outsourcing; and (3) Consolidation of healthcare service as a result of merger & acquisitions and mergers and acquisition activities is driving towards a fast growth in demand for outsourcing services associated with risk mitigation.
The global healthcare BPO industry has witnessed a tremendous growth in the last few years. The healthcare BPO industry is expected to grow at a rate of approximately 10.84% per annum until 2027. The primary reason among the biggest drivers for this growth in the healthcare BPO industry is that healthcare organizations are increasingly globalized and require lower costs due to stringent healthcare budgets in various nations. Countries all over the world are experiencing healthcare budget deficits because of increased healthcare expenses and an aging population. Therefore, they are resorting to low-cost outsourced healthcare BPO services to address their financial difficulties. Besides this, another driving force for the expansion of the global healthcare BPO industry is the increasing number of outsourcing transactions. Healthcare organizations around the world are considering outsourcing their non-core activities such as finance and accounting, legal, medical coding and transcription, etc. in a bid to cut costs. United States and Canada are leading countries for North America healthcare BPO market.
The US has a large share of the overall market place due to reasons such as the well-developed healthcare infrastructure, ageing population most likely to drive demand over the forecast period, rising public sector expenditure incurred on reimbursing treatment charges, rising private sector expenditure incurred on outpatient procedures, rise in insurance premiums expenditure incurred by private insurers on employer and employee, high demand for outpatient procedures, rising prevalence of chronic diseases, and intensive involvement of specialists in the healthcare industry. We have included the following nations in this report because they provide medical transcription services of healthcare BPO to patients throughout the whole of North America including the United States. This created huge demand for healthcare BPO services that create a diverse range of business opportunities for industries from legal outsourcing to the tech support call centers, bank telemarketing, and hybrid online consumer helpdesks. Currently, Canada offers outsource medical transcription services to other nations in North America.
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