For the past few months, US President Barack Obama has been keeping the Indian IT/BPO industry on the edge with his anti-outsourcing campaign. Even though President Obama off late have been making election speeches against outsourcing, there are many IT biggies who hope that Obama would defeat Romney in the upcoming Presidential election in US this November.
Wonder why is it so? There is a section of people who believe that if Barack Obama makes his way to win the next US Presidential elections, it would definitely open up new opportunities for Indian IT/BPO sector. Victory of Obama will ensure the implementation of the new healthcare insurance bill, Patient Protection and Affordable Care Act which is popularly known as Obamacare and this in turn is said to fetch a million dollar revenue opportunity for Indian IT companies. It is believed that the new insurance bill will open up deal worth $22 billion (Rs 1.2 lakh crore) for IT /BPO firms in India.
Obamacare or Patient Protection and Affordable Care Act that is supported by US Supreme court will open up the gateway for Indian IT companies to American hospitals and insurance companies like never before. As per the Obamacare, when enforced in 2014, requires all the Americans to have health insurance and in case of failures will be subjected to penalty. It is expected that new healthcare insurance bill will extend the insurance coverage to about 32 million uninsured American.
As per the reports, the new reform will open up projects for Indian IT service providers in the form of data conversion, creation and management of electronic healthcare records, claims processing and insurance sales. The new healthcare insurance bill requires hospitals and insurers to integrate systems to handle more business which is not possible as different insurance companies work on different platforms and hospitals do not interface with the systems of the insurance companies. This will encourage the insurance companies and hospitals to outsource much of the process to third party service providers which pose a huge opportunity for Indian IT companies.
According to the industry insiders, the expected revenue opportunity for IT companies because of Obamacare would amount to $22 billion in the long run and Indian IT/BPO providers can bag 40-50% of this revenue. The market for IT services in the healthcare sector in US is about $14 million- $15 billion and is growing at a rate of 5-7% every year and with the new healthcare insurance bill, the industry is expected to grow at rate of 8-10%. It is anticipated that the outsourcing deals to provide IT services will increase by 20% with this new insurance bill. This in turn will increase the revenue opportunity for Indian IT companies which earn about 5-10% of revenue from health care and insurance industry and especially for those who have established on-shore capabilities in the US market like Wipro and TCS. The Indian IT companies can also partner with US based companies if they want a share of pie from the huge insurance projects.