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Hospital Outsourcing Market Size to Hit US$ 680.2 Billion by 2027 Says Nova One Advisor

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According to Nova One Advisor, the global hospital outsourcing market size is projected to hit around USD 680.2 billion by 2027 from USD 275.5 Billion in 2020. Furthermore, the growth rate from 2021 to 2027 is positioned to be at a CAGR of 11.4%.

The hospital outsourcing market provides insight and analysis regarding the various factors expected to be prevalent throughout the forecast period while providing their impacts on the market’s growth. The report contains 150+ pages with detailed analysis.

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Hospital outsourcing has paved its way to become one of the most popular strategies that hospitals adopt to control costs. In hospital outsourcing, a third party or external contractor/service provider takes over the control of the management of a hospital or healthcare organizations’ operations, clinical, and hospitality services. The service provider, by applying its expertise achieves economies of scale and thus offers efficient services to the hospitals at optimum costs. This reduces the operating cost of the hospitals and improves profitability. This is a major driving force of the hospital outsourcing market.

The service providers offer various services such as IT services, laundry, patients’ records, cafeteria, catering, transport, and several other services. This helps the hospital to focus on its core business. The presence of the large number of service providers offers the services at a reasonable cost due to increased competition. Moreover, stringent government regulations to maintain electronic medical records are significantly boosting the growth of the hospital outsourcing market.

Growth Factors:

  • Hospitals are increasingly outsourcing internal activities to third-party service providers to control the rising costs of providing services, focus on the core competencies, and avail access to service professionals.
  • Along with the financial benefits, outsourcing of hospital services promotes access to skilled personnel to take care of both clinical and non-clinical responsibilities. The availability of experienced and professionally qualified manpower is very important in the healthcare sector as it is a people-driven industry.
  • In the hospital industry, patient satisfaction mainly depends on the human touch and the services offered by the staff. Hence, the hospitality aspect plays a vital role, and finding clinically qualified labor with essential soft skills is a task, thus requiring external assistance.
  • In addition, hospitals outsource their internal activities to third-party service providers as it allows healthcare professionals to focus on patient needs and deliver quality care. Non- clinical services that are routinely outsourced are facility management, catering, laundry, and home care staffing.
  • The introduction of the value-based care reforms has increased pressure on the healthcare facilities to offer cost-effective care and reduce inpatient volumes in the facilities. To maintain profitability in such a situation, hospitals are outsourcing their services to reduce cost consumption.

Report Highlights

  • By service, the clinical services segment is expected to be the fastest growing owing to the growing number of diagnostic laboratories, clinics, and private hospitals in the major markets such as the US, India, Japan, and the UK.
  • By type, the private segment led the global hospital outsourcing market with remarkable revenue share in 2020. Private hospitals seek to earn more profit by reducing their operational costs by assigning the management-related activities to the specialized hospital outsourcing service providers.

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Market Dynamics:


The hospital outsourcing market is primarily driven by the increased number of patients admissions owing to rising prevalence of chronic conditions and diseases amongst the population. Moreover, growing geriatric population, who are prone to diseases is boosting the market growth. According to the United Nations, the global population of age 65 years and above is estimated to reach 1.5 billion by 2050. This factor is surging the importance of management service providers in the healthcare sector.


A data breach is the major restraining factor that may hamper the market growth during the forecast period. Outsourcing enables a number of persons to have access to the data of a huge number of patients. This may lead to data breaches, particularly in IT outsourcing services. Hence, this may constraint the market growth in the upcoming years.


The increased adoption of digital media in the management of hospital in-house services has opened the doors for the adoption and implementation of artificial intelligence technologies that will increase efficiency by eliminating errors.


Cybersecurity is a major challenge especially in the IT services of any hospital. A severe cyberattack may put the patient’s life at risk and also result in financial losses to the hospitals. Hence, cybersecurity has an increased importance in today’s digital world.

Thanks for reading you can also get individual chapter-wise sections or region-wise report versions such as North America, Europe, or the Asia Pacific.

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Regional analysis:

North America accounted for the largest revenue share of 75.2% in 2020 owing to the presence of a large number of service providers in the region. In addition, increasing outsourcing of the local hospitals is further driving the hospital outsourcing market in the region. As hospitals are adopting the paperless working system in the developed countries such as the U.S., there is a huge inflow of patient data, to manage such a large amount of data most of the hospitals are hiring third-party service providers. This is expected to propel the growth of the market for hospital outsourcing in the region.

However, the Middle East and Africa is expected to register the fastest growth over the forecast period due to the increasing outsourcing of hospital services to countries such as Saudi Arabia. The availability of skilled resources, low-cost service offerings, and the increasing adoption of new technologies is expected to drive the market in the region.

Competition Landscape

In the final section of the research report, Nova One Advisor provided the global hospital outsourcing market structure and a detailed competition landscape to provide a dashboard view of key players operating in the hospital outsourcing market along with their business strategies to report audiences. This section is primarily designed to provide clients with an objective and detailed comparative assessment of the key providers specific to a market segment in the value chain of the market.

Some of the prominent players in the Hospital Outsourcing Market include Allscripts; Cerner Corporation; The Allure Group; Integrated Medical Transport; Sodexo; Aramark Corporation; LogistiCare Solutions, LLC; Flatworld Solutions; Alere, Inc.; ABM Industries Inc.

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2027 and covers subsequent region in its scope:

  • By Service
    • Healthcare IT
    • Clinical services
    • Business services
    • Transportation services
    • Others
  • By Type
    • Public
    • Private

By Geography

North America

  • U.S.
  • Canada


  • Germany
  • France
  • United Kingdom
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Rest of Latin America

Middle East & Africa (MEA)

  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa

Why should you invest in this report?

If you are aiming to enter the global hospital outsourcing market, this report is a comprehensive guide that provides crystal clear insights into this niche market. All the major application areas for hospital outsourcing are covered in this report and information is given on the important regions of the world where this market is likely to boom during the forecast period of 2021-2027 so that you can plan your strategies to enter this market accordingly.

Besides, through this report, you can have a complete grasp of the level of competition you will be facing in this hugely competitive market and if you are an established player in this market already, this report will help you gauge the strategies that your competitors have adopted to stay as market leaders in this market. For new entrants to this market, the voluminous data provided in this report is invaluable.

Purchase Full Research Report (Single User License US$ 3500) @

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