The healthcare industry witnessed a rapid increase in the IT and business process outsourcing adoption in recent years. Regulatory reform, consumerization of healthcare, market consolidation, and emergence of new technologies accelerated outsourcing in the healthcare market.

1. Topic: IT Application Outsourcing (AO) in the Healthcare
Provider Industry – Service Provider Landscape
Healthcare Outsourcing
Report: February 2013 – Preview Deck
Copyright © 2013, Everest Global, Inc.
EGR-2013-12-PD-0818

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3. Background and scope of the research
Background of the research
 The healthcare industry has witnessed a rapid increase in IT and business process outsourcing adoption in recent years.
Regulatory reform, consumerization of healthcare, market consolidation, and emergence of new technologies has accelerated
outsourcing in the healthcare market. A number and variety of service providers have developed capabilities to cater to this
growing market
 Healthcare companies are stepping up adoption of outsourced delivery. There is an uptick in the demand for research and
market intelligence on trends in healthcare outsourcing across the three major market segments – payer, provider, and life
sciences. The need is more pronounced for the vertical-specific Application Outsourcing (AO) function, where business
challenges are driving greater adoption. Everest Group’s healthcare outsourcing research program addresses this market
requirement by analyzing outsourcing trends and service provider capabilities specific to IT AO in the healthcare vertical
In this report, we analyze the capabilities of eight AO service providers specific to the global healthcare provider sector.
These service providers are mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK)
Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success.
We focus on:
 The landscape of service providers for healthcare provider AO
 Assessment of the service providers on a number of capability-related dimensions
 Characteristics of the Leaders, Major Contenders, and Emerging Players on Everest Group PEAK Matrix
 Implications for healthcare provider AO buyers and service providers
Scope of this report
 Industry: Healthcare providers (large health systems, standalone hospitals/clinics, pharmacists, physician practices, and
diagnostic labs)
 Services: Large (TCV >US$25 million), multi-year (>3 years), and annuity-based application outsourcing
 Geography: Global
 Sourcing model: Third-party AO transactions; excludes shared services or Global In-house Centers (GICs)
Copyright © 2013, Everest Global, Inc.
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4. This report examines the service provider landscape for large
annuity contracts in the healthcare provider AO market
NOT EXHAUSTIVE
Healthcare
Focus of report
Payer Life sciences Provider
 Private health plans  Pharmaceuticals  Large health systems
 Public health plans  Medical devices  Standalone hospitals/clinics
 Biotechnology  Pharmacists
 Others1  Physician practices
 Diagnostic labs
Services industry
IT Infrastructure IT Application Outsourcing Business Process
Outsourcing (IO) (AO) Outsourcing (BPO) Consulting
 Traditional IO  Applications development  BFSI-specific BPO  IT strategy / operations
 Remote Infrastructure  Applications maintenance  HRO consulting
Management (RIM)  Independent testing  FAO  Business consulting
 Infrastructure Management  Package implementation  PO  Infrastructure consulting
Services (IMS)  ERP services  Contact center  Infrastructure roll-outs
 Cloud  Business intelligence / data  Knowledge services
warehousing
This report assesses IT AO service providers in the healthcare provider segment with a focus on large (TCV >US$25 million), annuity-
based, and multi-year (>3 years) relationships
1 Includes healthcare data and information services and medical products distribution
Copyright © 2013, Everest Global, Inc.
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5. A number of service providers deliver AO services to
healthcare providers; Everest Group analyzed the capability of
eight service providers with success in large transactions
Service provider outreach (partial list) Service providers assessed
Criteria for inclusion in
the assessment
 Success in large
provider AO
relationships, i.e.,
– Over US$25 million
TCV
– Over 3 years
relationship duration
– Active as of Assessment based on:
December 31, 2011  RFIs submitted by service providers1
 Everest Group’s
 Everest Group Transactions Intelligence
experience and RFI database
response  Service provider disclosures and interviews
 Everest Group’s interaction with healthcare
provider AO buyers
1 Assessment for Accenture, CSC, HP ES, and IBM is based on Everest Group’s proprietary Transaction Intelligence (TI) database, service providers’ disclosures, and
Everest Group’s interactions with healthcare provider AO buyers
Copyright © 2013, Everest Global, Inc.
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6. Table of contents (page 1 of 2)
Topic Page no.
Background and methodology 5
Summary of key messages 11
Section I: Healthcare provider AO service provider landscape 13
 Healthcare provider AO service providers 14
 Delivery capability assessment 18
– Scale 18
– Scope 19
– Domain investments 22
– Delivery footprint 24
 Market success assessment 25
– Transaction activity 25
Section II: PEAK Matrix for healthcare provider AO 26
 Service provider capability summary dashboard 27
 Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for provider AO 28
 Key characteristics of service providers on the PEAK Matrix 29
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7. Table of contents (page 2 of 2)
Topic Page no.
Section III: Implications for key stakeholders 34
 Implications for buyers 35
 Implications for service providers 36
Section IV: Healthcare provider AO service provider profiles 37
 Accenture 38
 CGI 43
 Cognizant 48
 CSC 54
 Dell Services 60
 HP Enterprise Services 67
 IBM 72
 Mahindra Satyam 78
Appendix 83
 Glossary of key terms 84
 Healthcare research calendar 86
 References 87
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8. Overview and abbreviated summary of key messages
This report provides a comprehensive assessment of the service provider landscape for application outsourcing (AO) services in
the healthcare provider industry, and maps the leading service providers on Everest Group’s PEAK Matrix. It also includes
detailed profiles of the service providers featured on the PEAK Matrix.
Some of the findings in this report, among others, are:
Provider AO service  Despite a large number of service providers catering to the global healthcare market, there are only
provider landscape a handful of players that have achieved success with large-sized (TCV >US$25 million), multi-year
(deal duration >three years) AO contracts with healthcare provider clients
 The assessed service providers’ AO activity with healthcare providers is largely concentrated in
North America, particularly the United States
 All examined service providers have more mature AO relationships with hospitals and large health
systems as compared to other provider subsegments
PEAK Matrix for  Analysis of the service provider landscape for provider AO leveraging the Everest Group’s PEAK
provider AO Matrix reveals three distinct categories of service providers: Leaders, Major Contenders, and
Emerging Players
 Leaders account for a majority of industry revenues from large provider AO deals; they have an
extensive suite of proprietary solutions spanning ICD-10 transformation, Health Information
Exchange (HIE), Electronic Health Record (EHR), and health portals
 Major Contenders and Emerging Players have a relatively smaller scale; their proprietary solutions
include compliance tools, solution accelerators, and health information management tools
Implications for key  In addition to leveraging IT service providers for earning the IT adoption-linked incentives,
stakeholders healthcare providers need to put in place a robust technology strategy and forge effective, long-
term partnerships for executing their IT roadmap
 IT service providers need to stay abreast of the rapidly evolving demand and regulatory scenario in
the healthcare provider industry in order to remain relevant in an increasingly competitive market
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9. This study offers four distinct chapters providing a deep dive
into the healthcare provider AO service provider landscape;
below are four charts to illustrate the depth of the report
AO services scope coverage Provider AO technology capability
Measure of activity High Medium Low
Measure of capability Very high High Medium Low
Functional scope of provider AO contracts
ADM Testing ERP and SI Other AO Service Strength
provider assessment Examples of technology investments / proprietary solutions
Service provider 1  Service provider 1’s proprietary solutions in the provider space include:
Solutions for Health Information Exchange (HIE), Electronic Health
Service provider 2 Service Records (EHR), e-health, and framework for ICD-10 migration
provider 1  Service provider 1 acquired XYZ company’s clinical decision support
Service provider 3 platform in 2010, enhancing its technology capabilities in the
healthcare provider space
Service provider 4
Service provider 5
Service provider 6  Service provider 2’s proprietary solutions in the payer space include:
ICD-10 transition solution, HIPAA 5010 compliance tool suite, hospital
Service
Service provider 7 performance management solution, and healthcare portal solution
provider 2
 Service provider 2 has an alliance with ABC to jointly develop
Service provider 8 healthcare predictive analytics solutions
Provider AO market success Provider AO PEAK Matrix
Measure of activity High Medium Low Everest Group Performance | Experience | Ability | Knowledge
Large active provider AO deals Provider AO revenue growth (PEAK) Matrix for large provider AO relationships
Number of deals 2009-11; CAGR (percent)
High Leaders
Dell Services
Service provider 1 Service provider 1
(Transaction activity)
>20 Service provider 2 >20% Service provider 2
Major Contenders
Accenture CSC
Market success
Service provider 3 Service provider 3
IBM
Service provider 4 Service provider 1 Cognizant
HP ES
5-20 Service provider 5 10-20% Service provider 2 CGI
Service provider 6 Service provider 3
Mahindra Satyam
Service provider 7 Service provider 1
<5 Service provider 8 <10% Service provider 2 Emerging Players
Low
Service provider 9 Service provider 3 Low Delivery capability High
(Scale, scope, domain investments, and delivery footprint)
Source: Everest Group (2013)
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10. This report also features detailed profiles of the service
providers featured on the Everest Group PEAK Matrix for
Provider AO
Source: Everest Group (2013)
Copyright © 2013, Everest Global, Inc.
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11. Healthcare outsourcing research agenda
Published Current
Topic Release date
“
IT Application Outsourcing (AO) in the Healthcare Payer Industry –€
Annual Report 2012 July-2012
IT Application Outsourcing (AO) in the Healthcare Payer Industry – Service Provider Landscape July-2012
IT Application Outsourcing (AO) in the Life Sciences Industry – Annual Report 2012 September-2012
IT Application Outsourcing (AO) in the Life Sciences Industry – Service Provider Landscape November-2012
Application Outsourcing (AO) in the Healthcare Provider Industry – Is IT the Cure? – Annual Report 2012 December-2012
IT Application Outsourcing (AO) in the Healthcare Provider Industry – Service Provider Landscape February-2013
Consolidation in the Healthcare Payer-Provider Industry Q1-2013
IT Application Outsourcing (AO) in the Healthcare Payer Industry – Annual Report 2013 Q2-2013
IT Application Outsourcing (AO) in the Healthcare Payer Industry – Service Provider Landscape Q2-2013
Regulation and Reforms in Healthcare Q2-2013
IT Application Outsourcing (AO) in the Life Sciences Industry – Annual Report 2013 Q3-2013
IT Application Outsourcing (AO) in the Life Sciences Industry – Service Provider Landscape Q3-2013
Consumerization in Healthcare Q3-2013
Application Outsourcing (AO) in the Healthcare Provider Industry – Annual Report 2013 Q4-2013
IT Application Outsourcing (AO) in the Healthcare Provider Industry – Service Provider Landscape Q4-2013
SMAC in Healthcare – Drivers and Implications Q4-2013
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12. Additional healthcare research references
The following documents are recommended for additional insight on the topic covered in this report. The recommended
documents either provide additional details on the topic or complementary content that may be of interest:
1. IT Application Outsourcing (AO) in the Healthcare Provider Industry – Annual Report 2012 (EGR-2012-12-R-0808); 2012. This
report provides an overview of the AO market for the healthcare provider industry. Analysis includes key trends in market size & growth,
demand drivers, adoption & scope trends, emerging themes, key areas of investment, and outlook for the coming year. The report also
provides an introduction to the service provider landscape for the healthcare provider industry
2. IT Application Outsourcing (AO) in the Healthcare Payer Industry – Service Provider Landscape (EGR-2012-12-R-0721); 2012.
This report provides an in-depth analysis of the service provider landscape for AO in the healthcare payer segment. It includes PEAK
Matrix for Payer AO, analysis of service providers in terms of their delivery capability and market success, and detailed profiles of the
service providers featured on Payer AO PEAK Matrix
3. IT Application Outsourcing (AO) in the Life Sciences Industry – Service Provider Landscape (EGR-2012-12-R-0782); 2012. This
report provides an in-depth analysis of the service provider landscape for AO in the life sciences segment. It includes PEAK Matrix for
Life Sciences AO, analysis of service providers in terms of their delivery capability and market success, and detailed profiles of the
service providers featured on Life Sciences AO PEAK Matrix
For more information on this and other research published by Everest Group, please
contact us:
Jimit Arora, Vice President: Jimit.arora@everestgrp.com
Mridul Gupta, Senior Analyst: Mridul.gupta@everestgrp.com
Service Provider Intelligence Team: SITeam@everestgrp.com
Everest Group
Two Galleria Tower
13455 Noel Road, Suite 2100 Phone: +1-214-451-3110
Dallas, TX 75240 Email: info@everestgrp.com
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