Global Healthcare BPO Market Share Grows Steadily at a CAGR of 9.87%

Introduction

A major factor driving the growth of the global healthcare BPO market is the increasing need to lower operational expenses while enhancing efficiency. By outsourcing non-core functions such as claims processing, medical billing, and transcription, healthcare providers can reduce administrative burdens and allocate more resources to direct patient care. This approach also allows for greater financial flexibility, as it shifts fixed costs to variable ones, an advantage particularly beneficial for smaller healthcare facilities.

Furthermore, the shortage of qualified healthcare professionals in many developed regions has encouraged providers to outsource routine administrative tasks to specialized BPO firms. The growing complexity of healthcare regulations, including those under HIPAA and GDPR, is another key driver, as it motivates organizations to rely on vendors with proven expertise in compliance and documentation. In addition, the ongoing shift toward value-based care models is increasing the demand for efficient and outsourced support services.

Market Dynamics

Increasing healthcare data volume drives the global market

A key aspect driving the expansion of the global market is the rapid surge in healthcare data. The extensive adoption of electronic health records (EHRs), telemedicine, wearable health technologies, and mobile health applications has significantly accelerated data generation.

• As reported by IDC, healthcare data was expected to grow by an astounding 11,000%, from around 153 exabytes in 2013 to over 2,314 exabytes by 2020. Looking ahead, IDC projected that by 2025, healthcare would be the fastest-growing data source globally. Currently, the healthcare sector contributes to nearly 30% of the world’s total data output.

This explosion in data volume places a heavy demand on healthcare organizations to store, process, and analyze information efficiently, capabilities that many still lack. As a result, outsourcing to business process outsourcing (BPO) providers has become a strategic solution, enabling healthcare entities to handle data effectively while ensuring compliance, precision, and data security.

Growing use of automation and AI creates tremendous opportunities

The global market is experiencing robust growth opportunities driven by the integration of automation and artificial intelligence (AI). These technologies are reshaping conventional outsourcing models by significantly improving speed, accuracy, and cost-effectiveness. In the healthcare sector, AI-enabled solutions are increasingly being applied to functions such as medical billing, coding, claims processing, and patient data management.

• A notable example is Omega Healthcare Management Services, which collaborates with over 350 healthcare organizations globally. In June 2025, the company partnered with UiPath to implement AI-based document understanding tools across its billing, claims, and documentation processes. This adoption allowed approximately 60–70% of clients to automate administrative tasks, saving over 15,000 employee hours monthly, cutting documentation time by 40%, accelerating turnaround by 50%, and achieving 99.5% accuracy. These improvements translated into an estimated 30% return on investment for clients.

Such advancements are prompting a growing number of healthcare providers to adopt AI-driven BPO solutions.

Regional Insights

North America holds a dominant position in the global healthcare BPO market due to high healthcare spending, widespread adoption of electronic health records (EHRs), and increasing regulatory complexity. The U.S. accounts for the largest share, driven by the need to reduce administrative burdens and ensure compliance with evolving regulations like HIPAA and the No Surprises Act.

Major BPO providers in the region, such as Cognizant and UnitedHealth Group’s Optum, have expanded their service portfolios with AI-driven solutions for claims processing and revenue cycle management. Additionally, the rising demand for value-based care models has encouraged providers to outsource functions like medical coding and patient engagement services. Canada is also witnessing growth, especially in outsourcing telehealth support and back-office operations, as public and private providers focus on cost optimization and expanding digital healthcare access post-pandemic.

Key Highlights

• The global healthcare BPO market size was valued at USD 348.98 billion in 2024 and is projected to grow from USD 383.42 billion in 2025 to reach USD 814.17 billion by 2033, growing at a CAGR of 9.87% during the forecast period (2025–2033).

• By service type, the global healthcare BPO market is segmented into revenue cycle management (RCM), patient care services, administrative services, and pharmaceutical outsourcing services.

• By provider type, the market is categorized into healthcare providers, healthcare payers, and pharmaceutical and biotech companies.

• By pharmaceutical services, the market includes research & development, manufacturing, non-clinical services, and others.

• By end-user, the market is divided into hospitals and clinics, insurance companies, pharmaceutical companies, medical device companies, and others.
• North America is the highest shareholder in the global market.

Competitive Players

Accenture, Cognizant, Tata Consultancy Services (TCS), Genpact, Xerox Corporation, IQVIA, HCL Technologies, Infosys BPM, WNS Global Services, UnitedHealth Group, and others.

Recent Developments

• In July 2025, Telecom Egypt, in partnership with KareXpert, backed by Reliance Jio, officially announced the launch of an AI-powered national healthcare platform built on Egypt’s sovereign cloud infrastructure. This initiative introduces a unified ecosystem featuring Hospital Information Management System (HIMS), Electronic Medical Records (EMRs), and revenue cycle management solutions designed to streamline both administrative and clinical workflows across public and private hospitals.

Segmentation

1. By Service Type
   1. Revenue Cycle Management (RCM)
   2. Patient Care Services
   3. Administrative Services
   4. Pharmaceutical Outsourcing Services
2. By Provider Type
   1. Healthcare Providers
   2. Healthcare Payers
   3. Pharmaceutical and Biotech Companies
3. By Pharmaceutical Services
   1. Research & Development
   2. Manufacturing
   3. Non-Clinical Services
   4. Others
4. By End-User
   1. Hospitals and Clinics
   2. Insurance Companies
   3. Pharmaceutical Companies
   4. Medical Device Companies
   5. Others
5. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa