Healthcare IT Services Market Update August 2016

QoQ growth has slowed down at all the major firms except Wipro which saw the impact of the first full quarter of earnings from its Health Plan Services (HPS) acquisition.  Infosys has seen two consecutive quarters of negative growth. All firms (except TCS which does not provide guidance) have reduced their revenue guidance going into the second quarter and beyond.

Healthcare revenue as a % of total revenue remains steady across all the firms.  For Wipro, the impact of HPS has increased the share of Healthcare revenue from 11% to 15%.

CTS continues to be the dominant player, with healthcare revenues at nearly 30% of company revenues.  At a time when other players saw negative growth, CTS managed the highest growth (except for Wipro and the HPS impact) among all the firms. 

Infosys continued to restructure the organization in the wake of a challenging quarter amid rumors of high-profile new hires in the offing.

In light of the ongoing thrust on automation, almost all firms have renewed their focus on training.  TCS states that they trained 120,000 employees with 349,000 competencies (average of 3 new competencies).  Wipro plans to retrain more than 10,000 engineers on new programming skills involving cloud, digital technologies, and mobility.

According to a research report published by Market Research Engine, the value of Healthcare outsourcing will be $50 billion by 2020 growing at a CAGR of 10% in the forecast period 2015-2024.

You can download the detailed complimentary report here.The report includes a cool new tag cloud analysis of earnings transcripts.

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