The healthcare industry is buzzing like never before. Consumerism is reshaping business models. Payer-provider convergence and the related operating models are now mainstream. Patients are becoming active stakeholders in the healthcare delivery. Technology, wearables and mobile apps are disrupting the way the 3P’s of Healthcare interact – Patients, Providers and Payers.
This is the new normal. This will also change and very soon.
Let’s take a look at how product vendors are gearing up – The conversations between CTOs and service providers are moving beyond cost and resource arbitrage; the conversations are more about value-addition, operational scale and agility and competitive advantage. CTOs are looking to go beyond a siloed approach to outsourcing and offshoring services, preferring to engage closely with service providers in their strategic roadmap. The conversations are moving from cost-advantage to strategic-advantage.
This is now an imperative for CTOs. As technology, innovation and customer preferences change rapidly, CTOs need to be ready to respond and more importantly prepare to stay ahead of the curve.
HIT Service providers, on their part, are innovating with business models. The outsourcing and offshoring models over the last many years have evolved. Learnings and expertise gained over the years has enabled them to restructure their operations, sales methodologies, and team organization to remain relevant, agile and innovative. They are reinventing their portfolio of service offerings and solutions – a mix of traditional IT and next-gen digital technologies.
However, the question remains: What do product vendors and technology innovators expect from a service provider in today’s times? What is the right model that fits all? What is the model that minimizes risk and yet draws the benefits of a global delivery model?
There are different business models out there to choose from and adopt to the business context on hand. However, over the course of many successful engagements with some of the big names in the HIT product space, we have observed that a Virtual Captive modelis what most CTOs today allude to when it comes to choosing the right offshoring model. The key elements of this model are:
- close alignment with the overall business strategy
- flexibility and agility in responding to new opportunities and new markets
- foster creative and innovative mindset
- seamless operational management between geographically dispersed set-ups
- and most importantly, complete ownership of all Intellectual Property
This model provides stakeholders the merits of an extended product engineering capacity with complete access and ownership of operations and a dedicated team of high quality engineering skills proficient in Healthcare product development. The attractive highlight of this model, however, is that the customer has the choice to acquire the ownership of this entire engineering setup after a few operational years.
To better understand this model, download a copy of our thought paper here.