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Indian healthcare providers to spend INR 660 Crore on IT

Ayush Gupta

Indian Healthcare providers will spend INR 660 crore on IT products and services this year, with cloud, mobility, big data and social high on the agenda for healthcare providers, according to Gartner.

The total spent will be 4% higher than last year.

This prediction includes spending by health care providers on personnel, hardware, software, external IT services and telecommunications.

IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category at INR 168 Crore in 2014, up from INR 162 Crore in 2013.

Spending on personnel will growth the most out of the spending categories, with an18.5% increase over last year. Internal services refer to salaries and benefits paid to the information services staff.

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Software spending will increase 11% to INR 61 Crore in 2013, up from INR 53 Crore in 2013, driven by specialist healthcare industry software. Government initiatives will boost IT spending on healthcare with plans to increase public spending on healthcare as part of community healthcare initiatives.

“India is expected to continue various healthcare technology investments through large private hospitals and state wide e-Health initiatives,” said Anurag Gupta, research director at Gartner.”Hospital information systems, picture archiving and communications systems, electronic health records and mobile technologies will be high on hospitals’ agenda.”

"We expect to see providers benefit by offering cost effective business models which show quick returns on capital by leveraging the Nexus of Forces (cloud, mobility, big data and social) and improving patient coverage and quality of care," Mr. Gupta added.

Geet Purwar, Technology Consultant at Creative Capital Group said that IT will account for an increasing amount of the overall budgets of Indian healthcare organisations. “The digital world is here and this results in every budget being an IT budget; every company being a technology company,” he said. “This investment in Information Technology will be quite beneficial for the IT firms which are specialized for providing healthcare solutions along with the emergence of small healthcare it industries.”