Indian healthcare BPOs facing stiff competition: Study
Players engaged in Business Process Outsourcing (BPO) in healthcare sector in India are facing stiff competition from their Filipino counterparts, said a study titled ‘Medical Process Outsourcing in India’. The joint study by Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Ernst & Young (E&Y) described the Philippines and other low-cost locations as a big challenge to Indian healthcare BPO industry. “Competition from leading healthcare BPO companies in the United States is a big challenge for Indian vendors, since most of them are specialists in the healthcare sector and provide an increased gamut of services as compared to Indian vendors,” the study said. Lack of clarity in terms of laws related to taxation, data privacy, intellectual property and clinical trials also create obstacles for the growth of the industry in India. Pointing out to inadequate Research and Development (R&D) support, the study said, “Changing regulatory mechanism and the time taken for approval of clinical trials in India has resulted in pharma companies running clinical trials in other countries.” While the government is gradually taking steps to provide more clarity on these laws, the current scenario is adversely impacting the healthcare BPO market in India, it said. Various advantages such as huge availability of healthcare professionals at affordable costs, a large patient pool and reduced time and costs for recruitment make India the most preferred destination for payer and outsourcing business. With a payer market estimated at $700-900 million, India is a leading destination in this segment along with the US and Philippines, the study said. However, the study said, Indian BPO vendors have not been able to penetrate European and other developed markets for insurance outsourcing business due to stricter regulatory norms and data privacy laws. “Lack of expertise on global medical coding standards, laws and policies pertaining to healthcare benefits in the source country, inadequate skillset for documentation and medical record management are among other key challenges being faced by the industry in India,” it said. Other major challenges before the growth of the Indian industry are rising salary level, inflationary pressure on overall cost of infrastructure, fluctuating exchange rates and infrastructural challenges such as power, broadband connectivity.
September 14, 2015 | 4:34pm IST.
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