Pharma outsourcing accounts for 75% of India's health care BPO market: study

At $2.5-$3.1 billion, pharmaceutical outsourcing market (excluding contract manufacturing services) accounts for about 75% of the India’s medical process outsourcing (MPO) segment which is currently estimated at $3.3–$4.2 billion, according to a just concluded study.

“While the payer outsourcing market constitutes $700-$900 million of India's MPO market, the provider market accounts for the remaining share of about $100-$200 million,” noted the study titled ‘Medical Process Outsourcing in India,’ jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and global professional services organization EY.

The recent US regulation on Patient Protection and Affordable Care Act (PPACA), together with the proposed introduction of ICD-10 standards, have given impetus to the Indian MPO market. Besides, domestic players are also gradually moving up the value chain in terms of service offerings while maintaining their cost competitiveness.