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Providers Pulling Back on IT Outsourcing Due to Regulatory Control

May 17, 2013
by Gabriel Perna
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According to a recent report from the Orem, Utah-based research firm, KLAS, pressures from meaningful use under the Health Information Technology for Economic and Clinical Health Act (HITECH) as well as other regulatory measures are prompting providers to pull back on extensive IT outsourcing (EITO), as they seek greater control over IT systems within their organization.

These findings were presented in the KLAS report, IT Outsourcing 2013: Who Can Help with Rising IT Pressures? According to the researchers, there is still room for IT outsourcing firms, as the demands for application management and help desk services remain high. The market for partial IT outsourcing (PITO) has grown in this regard.

However, there is some trepidation on the performance of vendors in this space. According to the researchers, several firms have experienced drastic changes in satisfaction scores over the past two years. Firms such as McKesson, Dell, and Siemens had their scores drop significantly.

"Providers are really looking to IT outsourcing to assist them with their IT strategies, more than they have in the past. Most of the activity is seen in partial IT outsourcing with some movement in extensive IT outsourcing," Erik Westerlind, report author and research director at KLAS, said in a statement. "This report will really shed light on which vendors are positioning themselves to help providers navigate the IT demands that stem from the federal government's initiatives."

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