Topics In Demand
Notification
New

No notification found.

Blog
Healthcare IT Services - The Scorecard for Q1

August 5, 2016

457

0


Listen to this article



The big Indian firms are not showing much growth in healthcare and are struggling with their legacy offerings and positioning ( Wipro seems to have had a QoQ bump due to the HPS merger going into effect). Infosys in particular seems to be struggling.

Indian IT majors TCS, Infosys, and Wipro announced their results for the quarter ended June 30, 2016. Wipro and Infosys had a weaker quarter compared to TCS

Infosys’s healthcare IT revenue seems to have declined by 3.79%. Infosys had reclassified its portfolio last quarter to combine the Insurance and healthcare verticals, making it harder to draw comparisons. Media reports suggest that the cancellation of a major deal from the proposed merger of drug makers Pfizer Inc. and Allergan Plc., might have led to the company missing its forecasts. In the wake of a weak performance for the quarter, the company has announced management changes, including leadership changes in the healthcare business.

TCS seems to have grown the healthcare business by 3.90 % QoQ, and the contribution of healthcare IT revenues to total revenues has remained steady at 7%. TCS announced three client wins in healthcare.

Wipro’s healthcare revenues indicate a 46% QoQ growth, partly due to the impact of the Health Plan Services (HPS) acquisition in Q4 2015. There is a corresponding drop in OM for the healthcare business from 19.96% to 14.33%. Overall margins for the company have dropped due to compensation increases as well as the HPS merger.

Both TCS and Wipro announced multiple new client wins.

Download our complimentary report for a detailed update on the healthcare IT services market in July.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


© Copyright nasscom. All Rights Reserved.