As a controversial healthcare reform bill gets underway in the U.S., an opportunity is bound to open up for outsourcing companies with hospitals looking to save cost in the wake of a recession. Outsourcing services include a wide range of services from software development firms, ecommerce development companies and web development firms
In addition to that, insurance providers are also expected to join the bandwagon in outsourcing in search of cheap labor. With the passing of the Obama Reform bill on March 23, it looks rather rosy outsourcing providers in 2010.
The NASDAQ reported that outsourcing companies such as Firstsource Solutions (NYSE:FSL) and WNS (NYSE:WNS) are considering hiking their presence in the U.S. in order to obtain more contracts. These firms will be seeking to expand relationships with potential U.S. clients by developing onshore facilities. This really means that they will be at an arm’s length with their customers so that they can earn the trust of their clients.
In addition, firms like Genpact (NYSE:G) will be looking to consolidate with possible mergers and acquisitions in the offing. Combing with other firms will allow them to widen their expertise. It will also enable them to add more business stemming from healthcare to their repertoire of projects. Genpact, in particular, is reportedly seeking firms that provide revenue cycle management, clinical and non-clinical supply chain management for insurance providers and process management.
Most of the new, business is likely to stem from customer service, claims processing, and customer enrollment with insurance become available to every citizen of the U.S. With stiff competition in the outsourcing scene, vendors from Philippines, India, China and Mexico will be competing to get an edge in healthcare outsourcing. At any rate, it looks like those who will reap the most benefit will be those firms that can either provide onshore or nearshore capabilities like Mexico and Canada.
With the health reform bill enacted, approximately 32 billion individuals will now be added to the list of persons eligible for insurance. In addition, existing clients will need to be serviced. The sheer volume in terms of numbers implies that this will be a huge opportunity for outsourcers – perhaps the singlemost significant shift in outsourcing since IT became a popular area to be outsourced.
Though the Obama health bill remains much maligned within the U.S., it is still cheered by most in other parts of the world. It appears as though the rest of the world is about to reap the profits from the passage of the health bill.
Jacob Cherian writes for SourcingLine.