APEJ Healthcare Sector Upbeat On IT Spending

by CXOtoday News Desk    Apr 09, 2014

healthcare

IT spending on healthcare sector continues to accelerate in the Asia Pacific region. A recent IDC report estimates healthcare IT spending in the Asia Pacific excluding Japan (APEJ) to show a compound annual growth rate (CAGR) of 8% in the next 5 years.

IDC says that Australia, China, India, Singapore and South Korea represented close to 90% of Asia Pacific IT healthcare IT spending last year. China is predicted to outstrip other APAC countries over the next five years, with a compound annual growth rate of 11.7% on IT spending in its healthcare sector, says the report.

According to IDC, while the Asia Pacific countries are very disparate when it comes to infrastructure and IT maturity, as well as healthcare systems, every country, whether developed or developing, is looking to create a sustainable healthcare system. The region also holds immense potential for the vendor community, also because of the high population base and the relatively nascent stage of IT adoption in developing countries.

According to Sash Mukherjee, Research Manager IDC Health Insights Asia/Pacific, while the Asia Pacific countries are very disparate when it comes to infrastructure and IT maturity, as well as healthcare systems, “every country, whether developed or developing, is looking to create a sustainable healthcare system.” Mukherjee warns that the region cannot afford to stop investing in healthcare “with many countries still struggling with improving basic health outcomes.”

He adds that the region holds immense potential for the vendor community, also because of the high population base and the relatively nascent stage of IT adoption in developing countries. “The spending pattern clearly demarcates the developing and the mature economies in the region. There emerge two clear groups of countries when it comes to IT maturity,” he says.

As the study shows the countries, where hardware spending comprises more than 50% of the total IT spending, are still focused on infrastructure. The mature economies are expected to spend less than 50% on hardware. Where the initial infrastructure investments have been made, the spending pattern shifts to software and services. Mukherjee says that growth on IT spending in the healthcare sector will be driven by “infrastructural spending in developing countries and collaborative tools in the mature economies.”  

IDC’s IT healthcare spending study is presented in a pivot table format, says Mukherjee, “allowing technology vendors to draw useful considerations on short and long-term opportunities in their market(s) of interest.”