U.S. Healthcare Industry Seeks Digital Transformation in Response to COVID-19

ISG Provider Lens™ report finds healthcare providers in the U.S. looking for digital tools to meet several challenges facing the industry

U.S. healthcare providers and payers are looking at digital transformation to help them navigate the ongoing pandemic and other industry challenges, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2021 ISG Provider Lens™ Healthcare Digital Services Report for the U.S. finds the healthcare industry seeking IT service providers to help them with their digital transformation efforts, partly in response to the pandemic, but also to address changing regulations and patient expectations, technological advances, rising costs and new entrants into the market.

The pandemic has made the care of patients more complex, with the need to support patients with chronic conditions, and it has impacted healthcare providers’ balance sheets and resources, the report says.

“Learning from the pandemic, the U.S. healthcare system is evolving, with an increased focus on healthcare equity, supply chain issues, workforce challenges and treating patients who have deferred care,” said Bob Krohn, partner, Healthcare, for ISG.

In response, healthcare providers have focused on so-called value-based care, including remote and virtual care, and they’ve embraced the consumerization of healthcare, with more convenience and easy access to information and services, the report says. Digital transformation efforts have helped deliver these services.

Patient-centric care using digital tools is spreading in the U.S., with healthcare providers offering personalization and enhance data collection, the report says. These tools are improving with the use of artificial intelligence and real-time analytics, but they still need integration with in-person care.

Healthcare providers also face challenges around data transparency and privacy, equity of access for patients without broadband services, and delivery of care for an aging population, the report adds.

Healthcare providers have a continuing need to access and share information that can help improve patient expectations and outcomes, the report says. The healthcare system is evolving to ensure cost transparency to consumers and enable improved access to medical data needed by various stakeholders. Service providers offer expert advice and tools for interoperability, but some healthcare providers have been slow to adopt them.

Beyond the pandemic, another major change facing the U.S. healthcare system is disruption triggered by technology companies, retailers, telecom providers and banks, as well as consolidations in the industry, the report says. Basic primary care is being offered by big-box stores and pharmaceutical chains. Provider and employer arrangements with payers are changing the nature of partnerships with insurance companies.

Healthcare providers are facing several related challenges, including government regulation, technology changes and integration, cost pressures and a resistance to organizational change, the report adds.

Service providers targeting the industry, meanwhile, offer business and engineering transformation services, although healthcare clients typically focus on tactical instead of strategic initiatives, the report says. Service providers also offer interoperability and integration services, technology modernization plans, expertise in several healthcare domains and healthcare-focused centers of excellence.

The 2021 ISG Provider Lens™ Healthcare Digital Services Report for the U.S. evaluates the capabilities of 38 providers across five quadrants: Payer Digital Transformation Services, Payer BPaaS Services, Provider Digital Transformation Services, Healthcare Cloud Migration Services, and Healthcare Interoperability Services and Solutions.

The report names Cognizant, NTT DATA and Wipro as Leaders in all five quadrants and Accenture, HCL and TCS as Leaders in four. Infinite and Infosys are named Leaders in three quadrants, and Capgemini, IBM, Optum and UST are named Leaders in two. Atos, Cerner, EXL, Firstsource, Genpact, Hexaware and Tech Mahindra are named Leaders in one quadrant.

In addition, Conduent was named a Rising Star—a company with a “promising portfolio” and “high future potential” by ISG’s definition—in two quadrants. Atos, CitiusTech, Firstsource, Infosys and Tech Mahindra were named Rising Stars in one quadrant.

Customized versions of the report are available from Capgemini, Conduent, EXL, Firstsource, Hexaware and Infinite.

The 2021 ISG Provider Lens™ Healthcare Digital Services Report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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