Healthcare IT spending in India to increase by 22 % by 2013: Springboard
Healthcare IT spending in India is expected to grow from US$ 274.2 million in 2009 to US$ 609.5 in 2013, growing at a Compounded Annual Growth Rate (CAGR) of 22 percent from 2009-2013, says the latest “IT in the Healthcare Industry - Emerging Trends and Market Opportunities in India” report from Springboard Research, an IT market research company.
The report revealed that hardware accounted for the largest proportion of total IT spending in the healthcare vertical with 55 percent share, followed by software and IT services at 25 percent and 20 percent respectively in 2009.
According to the Springboard Research report, IBM (NYSE:IBM), Dell (NASDAQ:DELL) Services and SAP (NYSE: SAP) are some of the key players active in the healthcare space in India whereas Siemens Information Systems and Religare Technova (BOM:526927) are identified as the emerging vendors in this space.
The spending on basic computing products, however, are expected to increase over the next five years, as hospitals build and upgrade their IT infrastructure noted Tulika Sheel, analyst, Vertical Industries, Springboard Research. She further added that, “Moreover, with new and upcoming applications such as telemedicine and e-prescriptions penetrating the healthcare vertical in India, IT investments on software would further increase with a focus on integrated billing and online availability of patient records across hospitals.”
The report states that 23 percent of the healthcare respondents who currently use or plan to use cloud computing cited ‘reduced hardware infrastructure costs’ and ‘simplified resource and server provisioning’ to be the primary reasons for adoption.
“Vendors in the healthcare vertical should look to offer industry specific solution including back-end and front-end applications and involve clinical members to actively participate and understand the solution and its impact on the hospitals for better clinical services,” advised Nilotpal Chakravarti, research manager, Vertical Industries, Springboard Research.
Talking about the opportunities for IT solution providers, Chakravarti noted that, “IT solution providers in this space must also start focusing on the blooming opportunities in tier 2 and tier 3 cities as there will be a high demand for quality healthcare services in these cities and healthcare providers would look for low cost models and high patient turnover models”.
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