Professional services cost billions

Healthcare IT professional services are now generating revenues of more than $2.2 billion (€1.5 billion) a year, according to Frost and Sullivan.

In a report on the Healthcare IT Professional Services Markets in Europe, the analyst and consulting company estimates that this could reach $3.6 billion (€2.5 billion) by 2015.

However, it warns that the high demand for professionals and their high pay cheques could impose constraints on market expansion; especially as end-users look to trim costs as a result of the global economic downturn.

“The revenue potential of professional services in healthcare IT markets is significant because it can create a recurring revenue stream for vendors,” said a Frost and Sullivan senior researcher.

Conversely, he said: “IT services expenditure is one of the main concerns of end users in the context of healthcare IT spending. Support and maintenance services, in particular, account for more than 50% of the total professional services markets in Europe.

“Mounting pressure to reduce costs in the healthcare sector will make it increasingly difficult for vendors to continue with current spending levels on the employment of professional services experts.”

Frost and Sullivan argues the support and maintenance segments of the healthcare IT services market are likely to continue to dominate revenues overall.

Its analysis argues that other providers will need to focus on delivering highly customised, user-focused consulting and shorter, easier training courses to thrive in the future.

Link: Frost and Sullivan