Healthcare providers to spend $1.2 bn on IT products and services

Gartner forecasts IT services will continue to be largest overall spending category within healthcare providers sector

Healthcare providers in India are expected to spend $1.2 billion on IT products and services in 2016, an increase of 3.4% over 2015, according to Gartner.

This forecast includes spending by healthcare providers (hospitals, hospital systems, nursing and residential care, and university hospitals) on internal services, software, IT services, datacenter systems, devices and telecom services.

"IT services, which includes consulting, software support, implementation, hardware, IT outsourcing (ITO) and business process outsourcing (BPO), will continue to be the largest overall spending category within the healthcare providers sector," said Moutusi Sau principal research analyst at Gartner.

He added, "It is expected to reach $339 million in2016, growing 5.2% over 2015. The BPO sub-segment will record the fastest growth rate of 15.4% over 2015. ITO will be the largest sub-segment in IT services recording a 7.5% increase in 2016 to reach $107 million in 2016."

The software market will grow 6% in 2016 to reach $106 million, up from $100 million in2015. Infrastructure will grow 4.5% in 2016 to reach $43 million.