Healthcare as a sector is susceptible to pressures on several fronts — modern technologies, regulatory complexities and supervision, patient expectations, and synergies across different players in the landscape. No other sector must work with this many moving parts and swiftly evolving realities. Further, with COVID-19, there has been added emphasis on digital transformation in the sector and keeping up with rapidly evolving consumer expectations. Post-COVID, the foot may have been taken off the digital transformation pedal just for a bit, but the industry is looking to consolidate on the hard-earned gains in IT product development achieved in the past few years. With the shift from a ‘fee-for-service’ to a ‘value-based-care’ model among healthcare providers, there is a demand for IT products to improve the measured metrics. Further, what is remarkable is a sustained shift towards telehealth (even post-pandemic), transition to the cloud, and continuing investments in digital health initiatives have been witnessed.
The writing on the wall is clear. There is a steady demand for innovative IT products that save costs, comply with regulations, reduce the load on clinicians and physicians, and enhance the patient experience. Parallel to this, there is an accompanying demand for knowledgeable healthcare software development companies. These firms can work as true partners cost-effectively and act as force multipliers. This is understandable, given the formidable challenges in grooming in-house tech talent and ramping up and down staff strength in line with changing demands of product engineering and the market.
As a healthcare provider or independent software vendor, the temptation to outsource the tricky bits of product engineering is vital. But if a firm has never outsourced before (or burnt their hands previously), it is vital to understand why product engineering outsourcing might help and the potential risks involved.
Why Outsource Product Engineering for Healthcare IT
Will product engineering outsourcing bring cost savings versus building and nurturing an in-house IT team? Is your firm well-positioned to handle operations related to hiring, training, and firming up infrastructure? These are questions to consider when mulling over product engineering outsourcing. Healthcare IT demands specialized technological skills, and outsourcing allows essential access to global, specialized engineering teams with expertise and experience relevant to the industry. Building those specialized skills in-house could place demands on both time and costs. This is a crucial factor to consider.
Additionally, by outsourcing product engineering, healthcare organizations can concentrate on their core competencies, like delivering patient care, operations, and strategic planning. At the same time, experts take care of the technical aspects of the job, ensuring the timely delivery of high-quality software. Further, external engineering teams bring efficiency and speed to the development process, accelerating timelines and faster time-to-market for new products.
Potential Risks While Outsourcing Product Engineering
With all the benefits considered above, it is vital to recognize and address potential risks involved in outsourcing product engineering services. Security and privacy of patient data are of pivotal importance in the healthcare sector. Therefore, these concerns need to be adequately addressed. To mitigate the risks involved, organizations must thoroughly vet technology partners. Further, it is necessary to ensure compliance with regulations like HIPAA.
An ‘outsource and forget’ approach needs to be revised. Outsourcing does not equate to the full relinquishing of controls. The healthcare provider must still be in the driver’s seat with complete visibility into processes. Quality assurance checks need to be completed from time to time. Performance issues must also be monitored, and clear expectations must be set at the very outset – right at the contract signing level. Regular review systems and issue resolution mechanisms must be put in place.
Further, the healthcare industry is highly specialized. There are complex regulatory requirements, concerns over privacy and unique business processes involving different stakeholders. Therefore, expert domain knowledge is key. Without a mature understanding of the domain, a partner may struggle to comprehend the specific challenges and requirements pertaining to the industry. Knowledge gaps may lead to miscommunication, time lost due to back and forth, delays, etc. This may potentially jeopardize the quality of the final product.
Finally, the maturity of product engineering practices is critical to deliver high-quality healthcare software products. A partner’s well-established engineering practices that are standardized, globally accepted and continuously improved can add value to the final product. Compromises made may result in unpredictable outcomes, poor product performance, etc. Not to mention the added risks to patient safety, legal risks, and reputational loss.
Best Practices for Finding the Right Outsourcing Partner
If an organization chooses to outsource product engineering, the following are the key considerations and best practices for finding the ideal outsourcing partner:
- Well-defined Project Requirements
Clarifying the project requirements, scope, outcomes, and goals is critical. While it might sound easy, software requirements are vulnerable to scope creep. Drawing the line between mission-critical features and nice-to-haves can impact the budget and delivery timelines. Further, getting different teams in your organization to sign off on software features and functionalities is a tough ask. Therefore, brainstorming and defining project requirements is a solid first step.
- Hire for Expertise and Track Record
You are looking for a tried and tested organization with a clear record of accomplishment in building healthcare IT, a deep understanding of the regulatory landscape, and a reputation for on-time deliveries. Some organizations float an RFP (Request for Proposals) to gain an advantage in terms of the cost and variety of organizations to choose from. Others perform extensive market research by considering domain knowledge, tech stack command, word of mouth, and more. The method you choose depends on the urgency and organizational processes.
- Security Compliance
Patient data security is essential for regulatory compliance. Therefore, the ideal partner organization has robust security and data protection protocols and experience adhering to country-specific laws.
- Capacity for Scale
The ideal IT partner should be able to scale up/down resources based on the project’s needs and changing requirements. Is the organization you are considering well-positioned to be flexible in resource allocation? Are their staff well-versed in healthcare, so your team does not have to spend time and energy on Knowledge Transfer? Asking these questions could help you make the right choice.
- Clear agreements and service-level commitments
Having clear and all-encompassing contracts is essential and could come to your rescue if things go south. Contracts should outline the scope of work, timelines, deliverables, confidentiality, service, quality standards, and dispute resolution, setting you up for a fruitful partnership.
HealthAsyst – Trusted IT Partner For Leading Players in the US
HealthAsyst is a trusted IT partner in the health tech industry, offering product engineering outsourcing services to several leading players. With our agile philosophy and expertise in distributed development, we ensure effective communication across time zones, optimal team composition, and a focus on user stories. Our Accountable Delivery Model emphasizes quality resources, processes, and regulatory compliance, while our Accountable Delivery Framework enables metrics-based performance management and goal-oriented project implementation. Trust HealthAsyst for exceptional healthcare IT product engineering outcomes as we drive innovation and empower clients to achieve their strategic goals. To discuss your digital transformation, please reach out to us at itservices@healthasyst.com