Healthcare Supply Chain BPO Market Size, Share & Trends Analysis Report By Payer Service (Order Management, Manufacturing Management), By End-user, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global healthcare supply chain BPO market size was valued at USD 2.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. The outsourcing of healthcare supply chain management services to third-party service providers is known as the healthcare supply chain business process outsourcing (BPO). The growth of this market is attributed to the rise in the need for cost-effective operations and growth in demand for advanced supply chain management (SCM) practices. Moreover, minimizing the overall cost of healthcare supply chain BPO services is likely to boost market growth during the forecast period. Furthermore, due to inventory management, the demand for healthcare supply chain business process outsourcing is increasing. Due to this reason, the market is expected to grow during the forecast period. Other factors responsible for the growth of the healthcare supply chain BPO market are a decrease in healthcare delivery costs, implementation of ICD-10 codes, and patent cliffs faced by the pharmaceutical companies.

The incorporation of advanced technologies such as AI, analytics, and cloud-based service portfolio by the key players produces intense competition in the market. For example, Accenture’s cloud-based solutions diminish logistics cost, improve service revenue, and increase the availability of services for the healthcare supply chain.

Hence, due to this reason, the market is expected to grow at a considerable rate. Technological advancement and integration of outsourcing processes with SCM are expected to remain the key drivers for the market during the forecast period.

Payer Service Insights

The transport management segment accounted for the largest revenue share of 24.1% in 2019. Transport management is one of the functions performed by companies that manage the continuous flow of the healthcare supply chain. It manages three main key processes of transportation management, such as planning and decision making in transportation and logistics, transport follow-up, and measurement of the transport management system.

Most of the leading pharmaceutical companies are outsourcing their clinical data management to professional medical writing and publishing service providers. With the increasing diverse pharmaceutical products being launched in the market, the need for transport management has increased drastically. Thus, growing preference for eco-friendly logistics and increasing product launch in the market are anticipated to boost growth for the transport management services.

End-user Insights

The biotechnology and pharmaceutical companies segment accounted for the largest revenue share of 36.3% in 2019 and is anticipated to maintain its lead over the forecast period. Moreover, the growing need for medicines and cost-efficient production is fueling the segment growth. This segment is expected to witness lucrative growth over the forecast period. The biotechnology industry is growing at a high rate and captures more than 25% of the total pharmaceutical market.

The biotechnology industry is focusing on the core activities related to drug development compared to non-core activities, such as medical affairs. To reduce expenditure and avail professional medical affairs services, biotechnology companies are outsourcing these services to contract research organizations. Due to this reason, this segment is expected to witness lucrative growth over the forecast period. The academic and government research institutes segment is anticipated to expand at the highest CAGR of 5.6% during the forecast period owing to rising investment in R&D.

Regional Insights

North America captured a revenue share of 50.2% in 2019 and is expected to lead throughout the forecast period. Growing demand for healthcare IT services is predicted to stimulate the healthcare supply chain business process outsourcing market growth over the forecast period. Changes in regulatory scenarios and increasing pressure on the healthcare industries to decrease service costs are likely to increase the demand for healthcare supply chain business process outsourcing. Hence, the regional market is expected to witness significant growth over the forecast period.

An increasing number of healthcare centers and rising demand for accounting services and analyzing finance services are expected to drive the market in Europe. Asia Pacific is likely to witness significant growth over the forecast period due to rising healthcare expenditure, increasing prevalence of chronic diseases, and rising demand for resources in developing countries, like China and India. Countries such as Philippines, China, Singapore, India, and Vietnam are at the epicenter for establishing delivery centers by the BPO service providers, thus promising higher activity from these regions over the forecast period.

Key Companies & Market Share Insights

Companies are focusing on research and development to introduce technologically advanced products and gain a competitive edge. Companies are also engaging in partnerships, mergers, and acquisitions, aiming to strengthen their product portfolio, manufacturing capacities, and provide competitive differentiation. For instance, in August 2018, Genpact acquired Barkawi Management Consultants GmbH & Co. KG Company. This acquisition will help Genpact to strengthen its supply chain management consulting services in various geographic regions. Some of the prominent players in the healthcare supply chain BPO market include:

• Firstsource Solutions

• Gebbs Healthcare Solutions

• WNS (Holdings)

• Xerox Corporation

Healthcare Supply Chain BPO Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global healthcare supply chain BPO market report on the basis of payer service, end-user, and region:

• Payer Service Outlook (Revenue, USD Million, 2016 - 2027)

  • Order Management

  • Inventory Management

  • Transport Management

  • Manufacturing Management

  • Sustainability Services

• End-user Outlook (Revenue, USD Million, 2016 - 2027)

  • Biotechnology and Pharmaceutical Companies

  • Academic and Government Research Institutes

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Colombia

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE