US firms’ cost-cutting driving growth in health outsourcing
HEALTHCARE OUTSOURCING growth is being driven by demand from US companies which are seeking to cut costs, the Healthcare Information Management Association of the Philippines (HIMAP) said.
The Board of Investments (BoI) in a statement Monday said the industry is expected to see strong growth this year despite the pandemic.
“The Information Technology-Business Process Management (IT-BPM) sector remains one of the top industry investments in the Philippines by US firms, with Health Information Management Services as one of the fastest-growing sub-sectors achieving double-digit growth despite the global economic slowdown brought about by the COVID-19 pandemic,” BoI Chairman and Trade Secretary Ramon M. Lopez said.
HIMAP Vice-President Vincent Remo has said that US companies continue to outsource to the Philippines due to the cost advantage and the local talent pool.
He said that the Philippines is able to provide healthcare outsourcing through a nurse and pharmacist workforce that are licensed in the US.
An accelerated coronavirus disease 2019 (COVID-19) vaccination rollout, he added, would help support the expansion of US companies.
“Our highly skilled talent pool remains our key advantage in attracting global IT-BPM companies,” he said.
The healthcare information management sector is expecting between 5-10% revenue growth to $3.4 billion in 2021.
The overall business process outsourcing industry revenue projection stands at 3.2-5.5% compound annual growth to $27.88-$29.09 billion for 2022, a forecast that was lowered to reflect the impact of the coronavirus pandemic. — Jenina P. Ibañez
