Healthcare BPO Market Size & Outlook, 2025-2033

Healthcare Bpo Market Size

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).

One of the key drivers of the global healthcare BPO market is the rising need to reduce operational costs and improve efficiency. By outsourcing non-core services such as medical billing, claims processing, and transcription, healthcare providers can significantly cut down on administrative overheads while focusing more on patient care. This shift also helps transform fixed costs into variable costs, making operations more financially flexible, especially for smaller organizations.

Additionally, the growing shortage of skilled professionals in many developed countries has pushed providers to delegate routine tasks to specialized BPO vendors. Another important factor is the increasing regulatory complexity in this sector. Regulations like HIPAA and GDPR require strict compliance, prompting providers to outsource these responsibilities to vendors with expertise in handling compliance and documentation. Moreover, the transition to value-based care is also driving demand for streamlined, outsourced processes.

Latest Market Trends

Rise in Cloud-Based Bpo Services

The global market is witnessing a significant shift toward cloud-based service models, driven by the need for greater scalability, flexibility, and cost efficiency. Cloud platforms enable seamless data exchange, real-time access to patient records, and integration across systems like Electronic Health Records (EHR), Claims Management, and Customer Relationship Management (CRM). These capabilities enhance operational agility and support remote workforce models, which are increasingly essential post-pandemic.

• For instance, Talkdesk launched its Healthcare Experience Cloud for Payers in September 2024, a cloud-native, AI-powered contact centre solution tailored specifically for healthcare insurers. The platform integrates with claims, CRM, and EHR systems to deliver personalized member support, reduce operational costs, and streamline workflow. Generative AI also automates post-call workstreams, reducing administrative burden by up to 66 %.

As data security measures improve, cloud adoption is expected to surge further in this market.

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Healthcare Bpo Market Driving Factors

Increasing Healthcare Data Volume

One of the primary drivers augmenting the growth of the global market is the exponential increase in healthcare data. The rise in electronic health records (EHRs), telehealth consultations, wearable health devices, and mobile health apps has led to an unprecedented surge in data generation.

• According to IDC, healthcare data was projected to surge by 11,000%, growing from approximately 153 exabytes (153 million terabytes) in 2013 to more than 2,314 exabytes by 2020. Furthermore, they anticipated that by 2025, the healthcare sector would become the fastest-growing source of data globally. At present, this sector accounts for around 30% of the total data volume generated worldwide.

This immense data volume requires efficient processing, storage, and analysis, which many healthcare organizations lack the infrastructure for. Outsourcing to BPO providers enables them to manage this data effectively while ensuring regulatory compliance, accuracy, and security.

Market Restraining Factors

Data Security and Privacy Concerns

Data security and privacy concerns remain a significant restraint in the global market. Healthcare institutions handle extremely sensitive patient data, which makes them attractive targets for cyberattacks and data breaches. Transferring such data to third-party vendors, especially across borders, increases the risk of unauthorized access and non-compliance with stringent regulations like HIPAA (USA) and GDPR (Europe).

• A 2023 report by IBM found that the average cost of a healthcare data breach reached $10.93 million, the highest among all industries. These risks make some healthcare providers hesitant to fully embrace outsourcing, especially for core functions involving confidential patient data and records.

Market Opportunities

Growing Use of Automation and Ai

The global market is witnessing significant opportunities through the adoption of automation and artificial intelligence (AI). These technologies are transforming traditional outsourcing by enhancing speed, accuracy, and cost-efficiency. AI-driven tools are increasingly used in areas such as medical billing, coding, claims adjudication, and patient data management.

• For instance, Omega Healthcare Management Services, which supports over 350 healthcare organizations worldwide, partnered with UiPath in June 2025 to incorporate AI-powered document understanding tools across its medical billing, claims processing, and documentation workflows. This AI integration enabled automation of administrative tasks for ~60–70% of its clients, resulting in 15,000+ employee hours saved per month, a 40% reduction in documentation time, 50% faster turnaround, and 99.5% accuracy, all culminating in ~30% ROI for clients.

Such developments are encouraging more providers to embrace AI-powered BPO solutions.

Regional Insights

The global market in North America is witnessing robust expansion driven by the region’s advanced healthcare infrastructure, high expenditure, and stringent regulatory frameworks. The rising demand for revenue cycle management and medical billing services is boosting the adoption of outsourcing. Furthermore, the growing pressure on healthcare providers to improve patient outcomes and operational efficiency is prompting the outsourcing of non-core functions. Increased integration of AI and analytics in BPO solutions also supports market expansion, particularly in payer services and clinical data management segments.

U.s Healthcare Bpo Market Trends

• The U.S. market is driven by rising healthcare costs and a shortage of skilled administrative staff. Many hospitals outsource medical billing, coding, and claims processing to firms like Optum and Cognizant. For example, UnitedHealth Group leverages BPO services to manage vast claims data efficiently. Increasing demand for value-based care and regulatory compliance (HIPAA) further fuels outsourcing to streamline administrative workflows.
• Canada’s healthcare BPO market is growing due to public-private partnerships and the push for digital health transformation. Organizations outsource tasks like patient scheduling, transcription, and data management. TELUS Health, for instance, partners with BPO providers to support virtual care infrastructure and electronic medical record (EMR) services. The adoption of AI-based outsourcing solutions also supports Canada’s shift toward efficient, tech-enabled healthcare delivery across provinces.

Asia-Pacific Healthcare Bpo Market Trends

Asia Pacific is emerging as a vital hub for this market, driven by the availability of skilled professionals, lower labor costs, and growing investments in healthcare IT infrastructure. The region is becoming a preferred outsourcing destination for global healthcare firms seeking scalable and cost-effective solutions. Increasing healthcare data volumes and digitization efforts are boosting demand for services like medical coding, billing, and claims adjudication. Rapid adoption of AI and process automation in BPO operations is further accelerating market growth in the region.

• China’s healthcare BPO market is growing due to the government's push toward digital health transformation and rising demand for cost-effective administrative solutions. Companies like iCarbonX and Neusoft are integrating AI-driven BPO services in medical transcription and claims management. Additionally, the expanding private healthcare sector is increasingly outsourcing non-core functions to manage high patient volumes efficiently and comply with emerging health data regulations.
• India’s healthcare BPO industry is a global outsourcing hub, driven by its large English-speaking workforce and expertise in medical billing, coding, and telemedicine support. Companies like Wipro, Cognizant, and Omega Healthcare offer scalable BPO services to U.S. and European clients. The government’s Digital India initiative and rising healthcare digitization are further fueling domestic BPO demand for electronic health record (EHR) management and insurance processing.

Europe Healthcare Bpo Market Trends

Europe’s market is growing steadily due to the increasing need for cost-effective healthcare delivery and compliance with complex regulatory norms. The adoption of outsourcing services for claims processing, medical transcription, and finance operations is expanding across the region. BPO providers are also offering multilingual support and GDPR-compliant services, attracting healthcare institutions seeking to streamline operations. Additionally, rising demand for digital transformation and automation in back-office operations is fostering market growth, particularly within healthcare administrative and support services.

• Germany's market for healthcare BPO is expanding due to rising demand for efficient administrative services amid a growing elderly population. Hospitals are increasingly outsourcing coding and billing to improve accuracy and reduce costs. For instance, German healthcare providers are partnering with BPO firms to navigate complex reimbursement systems under DRG (Diagnosis-Related Group) frameworks. Additionally, digitization initiatives under Germany’s Hospital Future Act are accelerating BPO adoption.
• The UK healthcare BPO market is driven by NHS cost containment strategies and labor shortages in administrative healthcare roles. Outsourcing firms are handling back-office operations like claims management and patient scheduling. For example, Capita and other vendors support NHS trusts in managing administrative workloads. Furthermore, post-Brexit regulatory realignments are encouraging outsourcing partners with expertise in compliance and data management, especially under UK GDPR regulations.

Service Type Insights

The revenue cycle management (RCM) segment holds a significant share in the market owing to the increasing demand for streamlining administrative tasks such as claims processing, billing, and payment collection. Outsourcing RCM services helps healthcare organizations enhance cash flow, minimize errors, and ensure regulatory compliance. With rising healthcare costs and the growing complexity of reimbursement procedures, providers are increasingly relying on BPO vendors to manage end-to-end revenue cycles efficiently and improve financial performance.

Provider Type Insights

Healthcare providers are major contributors to the market, driven by the need to lower operational burdens and focus on delivering quality patient care. They outsource non-core functions such as billing, transcription, and customer support to enhance service delivery and cost-efficiency. The growing patient load, stringent regulatory requirements, and adoption of electronic health records (EHR) further support outsourcing. BPO services enable providers to optimize workflow, ensure compliance, and improve healthcare outcomes through streamlined administrative support.

Pharmaceutical Services Insights

The research & development segment in pharmaceutical outsourcing is expanding rapidly due to increasing drug development costs and the need for faster innovation. Outsourcing R&D allows pharmaceutical companies to access global talent, advanced technologies, and specialized expertise while maintaining cost-effectiveness. From early-stage research to clinical trial management, BPO providers support various phases of the drug discovery pipeline. This segment plays a critical role in accelerating time-to-market and enhancing productivity in an increasingly competitive pharmaceutical landscape.

End-User Insights

Hospitals and clinics are prominent end-users in the market as they seek to offload time-consuming administrative responsibilities. By outsourcing tasks such as medical billing, coding, data entry, and patient support services, healthcare facilities can focus more on clinical operations and patient outcomes. The rising number of hospital admissions and growing emphasis on operational efficiency are key drivers. BPO services also support hospitals in maintaining compliance, reducing operational costs, and improving patient engagement through better service delivery.

Company Market Share

Companies in the healthcare BPO market are focusing on expanding their service portfolios by integrating advanced technologies like AI, machine learning, and automation to enhance efficiency and accuracy. They are also investing in global delivery centers to improve scalability and client reach. Strategic partnerships, mergers, and acquisitions are being pursued to strengthen capabilities and gain a competitive advantage, while ensuring compliance with evolving healthcare regulations to build trust and retain long-term clients.

Cognizant: Cognizant is a leading global professional services company with a strong presence in the market. It offers end-to-end solutions including claims processing, revenue cycle management, medical billing, and healthcare analytics. Cognizant serves major healthcare payers, providers, and pharmaceutical companies, leveraging advanced technologies like automation, AI, and cloud computing. Its focus on regulatory compliance, data security, and operational efficiency has made it a trusted partner for healthcare organizations aiming to streamline administrative processes and improve patient outcomes.

• In June 2025, Cognizant renewed and expanded a $1 billion healthcare deal, likely with UnitedHealth Group, for a five-year transformation initiative. The agreement focuses on implementing AI-powered productivity tools to streamline healthcare operations, enhance service delivery, and improve patient outcomes. This strategic move reinforces Cognizant's leadership in healthcare BPO and digital transformation solutions.

List of key players in Healthcare BPO Market

1. Accenture
2. Cognizant
3. Tata Consultancy Services (TCS)
4. Genpact
5. Xerox Corporation
6. IQVIA
7. HCL Technologies
8. Infosys BPM
9. WNS Global Services
10. UnitedHealth Group

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Recent Developments

• 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.
• March 2025- Leading global private equity firms, Blackstone, Hillhouse Investment, TPG, and General Atlantic, have submitted non-binding offers to acquire AGS Health, a healthcare IT services provider, in a deal that could value the company at approximately $1 billion. This move highlights the increasing appeal of healthcare business process outsourcing (BPO) firms to private equity investors.
• January 2025- U.S.-based investment firm New Mountain Capital, LLC, has made a strategic investment in Access Healthcare, a healthcare BPO company with operations in Chennai and Texas. As per sources, New Mountain Capital, which manages assets worth $55 billion, has acquired approximately 70–75% ownership in Access Healthcare, valuing the company at around $2 billion.