Health care revenue of BPO industry seen at $20B by 2022
HEALTH CARE among the fastest-growing segments of the information technology and business process management (IT BPM) industry is expected to become a $20-billion business over the next six years if it succeeds in climbing the value chain, industry officials said.
Maria Cristina G. Coronel, president of the Healthcare Information Management Association of the Philippines (HIMAP), said that the sector will go through specific changes to “future-proof” itself against threats like automation.
The Information Technology and Business Processing Association of the Philippines (IBPAP)of which HIMAP is a member recently launched its latest six-year road map for the IT BPM industry.
“We have actually focused on three areas to future-proof our industry,” she said on Oct. 27 in a presentation on the health care sector’s outlook during IBPAP’s Roadmap 2022 launch.
“First up would be the leveling up of our services. So from the low-level services, we are now moving to the higher-value services.”
She said that some services, such as medical transcription, would eventually become “high risk” since they may be “readily replaced” in the next six years as the sector turns its focus towards highly specialized services such as clinical analytics, among others.
“Second one is expanding our market base. Seventy-six percent of our revenues generated are from the Americas. Now there’s a big opportunity in the ASEAN and Japan where you have an aging population.”
“As of 2014, 25% of its population is aged 65 years and older. So there’s a huge opportunity in Japan.”
Ms. Coronel said that the third phase involves “upscaling” the sector’s talent base.
In terms of employment, she said that the sector expects its work force to double to over 200,000 in 2022 from 118,000 in 2016.
“So that’s a CAGR (compound annual growth rate) of 10% in terms of employment and 30% in terms of revenue. Clearly, it indicates a shifting in terms of the types of services we’ll be providing. It is shifting to the higher services.”
The sector experts to end this year with revenue of $2.4 billion, over 10% of the total pie or $22.9 billion so far being generated by the IT BPM industry in the Philippines.
HIMAP’s bullish outlook reflects a confidence felt in the entire industry.
The IT BPM industry is expected to earn as much as $38.9 billion in revenue by 2022 as it expands its global reach.
In the latest six-year industry road map, IBPAP said that it would shift towards middle and high-level jobs and a diversified portfolio, pointing to the industry’s increased ability to service many segments.
November 09, 2016