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Government and Private Sector Inclination towards ICT Budget Allocation in Healthcare Sector: Ken Research

Posted on 28 March 2017 by KenResearch Healthcare,

Ken Research has announced latest publication titled “ICT INVESTMENT TRENDS IN HEALTHCARE”, which gives a detailed understanding on ICT budget allocation and expenditure in healthcare sector. The report helps decision makers to analyze market dynamics in hardware, software, IT services, telecommunications, and consulting divisions.

ICT investment is the acquisition of equipment and computer software that is used in production for more than one year. ICT has three components: information technology equipment (computers and related hardware), communications equipment and software. Recent ICT trends, such as enterprise mobility, cloud computing, and business analytics has influenced ICT investment because these improvements and investment  in the technology has  optimized the cost structure, supported revenue growth, and streamlined operations within the  enterprises. A company's IT budget is affected by multiple variables, such as the state of the economy, the type of industry sector in which it operates and the financial health of the company.  ICT spending amongst large enterprises is expected to see an increase due to the steady recovery of the international economy and improving investment environment. Internationally the ICT spending is highest in the in the manufacturing and natural resource sector ( approx. 500,000 million dollars). The  worldwide spending in healthcare is about 100,000 million dollars .

The ICT spending is expected to remain stagnant in 2017. If taken a look at the budget composition of the IT spending, the highest is for the Hardware projects, which is about 35% of the total spending. It is closely followed by the spending in the taken up on the software projects that is almost 30%. The majority of the rest is spend on cloud based projects and the managed services.  In hardware spending, desktop, laptops and server spending incurs almost equal cost. The rest of the expense is on Networking, external storage , tablet/ mobile , security applications and printers.  The software budget allocation gives the top priority to virtualization (15%) and productivity (13%) and OS (15%).  In the upcoming year the investment on the cloud and hosting service is projected to see an upward movement , especially for the email hosting. The spending on the online backup and recovery is expected to remain flat and expenditure on the web hosting may drop slightly .

Due to the economic slowdown in China, the UK exit from the European Union and Trump’s coming to power, the world is in state of political and economic instability.  Thus, this is likely to impact the ICT investment framework as 40% say that this uncertainty has compelled them to reconsider their companies’ decision to purchase tech products and services. The IT buyers are less likely to invest in the products from the countries like Brazil, India and China . Also, the products from EU and UK are also under the scrutiny. The major concern of the investors is regarding the storage of data. About 47% of IT pros are worried about the difference in the privacy regulation between countries and how it will affect  how and where the data is stored .

ICT industry has become an important sector to observe in healthcare sector in past few years due to steady adoption by several industry players and increasing cognizance of the benefits of ICT in healthcare. The use of ICT resources helps healthcare providers to be more cost efficient, help in giving better customer care and spread their revenue channel.

The ICT in healthcare is mainly used to maintain reliable databank about the patient’s medical history and reaching out to them. The usage is not only limited to these issues. ICT is further used to collaborate between distant healthcare centers , better mobility of healthcare services  among others The healthcare IT presents significant financial benefits to healthcare industry players in the long term. The increasing investment in ICT by healthcare providers is primarily led  through use of cloud analytics, mobile apps and other health technologies, and social technologies

However, before the IT healthcare environment  is established  installation costs is quite high, due to the relatively recent innovation of the technology. This presents a significant barrier to adoption and execution of ICT in healthcare.

Cloud computing is one the most efficient IT services  in healthcare industry at present. However, as it has recently innovated, large-scale acceptance is still a long way away. In the upcoming years, cloud computing and cloud analytics are expected to be the fastest growing method of ICT investments in the healthcare sector . Cloud computing is essential to enable mobility of services, which is an important  tool in today’s globalized and connected world. Hence, the demand for cloud computing is projected to rise significantly over the coming years.

To review research report, follow below link:

Ken Research
Ankur Gupta, Head Marketing & Communications