All Press Releases for May 18, 2011

IT Outsourcing Market Shifts as Healthcare Providers Strive to Meet Meaningful Use Criteria

Top performers in both partial and extensive IT outsourcing pull far ahead of the pack, while top-tier firms lose ground.

    OREM, UT, May 18, 2011 /24-7PressRelease/ -- With meaningful use now a strong factor in healthcare IT decision-making, providers are reevaluating the decision to outsource IT services to implement and/or demonstrate meaningful use of certified EMR technology. The latest KLAS report--"IT Outsourcing: Better Service in a Shifting Market"--takes an in-depth look at where IT outsourcing (ITO) firms are succeeding, how providers are approaching changing ITO needs, and what factors influence satisfaction with an ITO firm.

According to survey participants, increasing numbers of providers are turning to partial IT outsourcing with positive results--60 percent of the respondents that have engaged a firm for discrete IT services reported seeing more value for their IT dollars since outsourcing. Although there has been some movement from full to partial ITO, and even to no ITO as some providers have taken all IT services in-house, the firms' overall performance trends in almost all cases have improved since 2008.

"The partial IT outsourcing market appears to be growing steadily," states Mike Smith, KLAS services research general manager and author of the report. "While the number of extensive ITO engagements has flattened out somewhat over the last few years. Providers that outsource their entire IT department expect high levels of strategic thinking, the sharing of best practices, and superb application management--all at a competitive price with strong service level agreements. Some ITO firms are rising to the occasion."

CareTech, Dell, and Siemens ranked in both the partial and extensive ITO categories. CTGHS topped all other firms for partial ITO with a performance of 91.6, and CareTech came in first for extensive ITO at 93.0 and second for partial ITO at 83.6. Findings for Accenture, Allscripts (now Eclipsys), Anthelio, Cerner, ACS, CSC, McKesson, and Phoenix Health Systems were also included in the report.

"Help desk services and application management are in highest demand for those outsourcing discrete areas," adds Smith. "Data center management comes next in popularity, with desktop management and network management lowest in demand at this point in time. Indications are strong that the partial ITO market will continue to grow; as ITO firms continue to prove their value in the healthcare space."

For more additional information about the IT outsourcing market, as well as the strengths and weaknesses of measured vendors, "IT Outsourcing: Better Service in a Shifting Market" is available to healthcare providers online for a significant discount off the standard retail price. To purchase, healthcare providers and vendors can visit

KLAS is a research firm specializing in monitoring and reporting the performance of healthcare vendors. KLAS' mission is to improve delivery, by independently measuring vendor performance for the benefit of our healthcare provider partners, consultants, investors, and vendors. Working together with executives from over 4500 hospitals and over 2500 clinics, KLAS delivers timely reports, trends, and statistics, which provide a solid overview of vendor performance in the industry. KLAS measures performance of software, professional services, and medical equipment vendors. For more information, go to, email [email protected], or call 1-800-920-4109 to speak with a KLAS representative. Follow KLAS on Twitter at

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