8 min read

Scaling Peaks, Confronting Pains: A Closer Look at Healthcare IT Outsourcing

More and more businesses in healthcare entrust their development projects to outsourcing companies. It’s clear why: hiring an external partner lets you get specialists with niche expertise on board. But what exactly can outsourcing do for your healthcare business? Discover different cases when you should consider outsourcing, and see how to choose a reliable tech partner.
Written by
Jonas Greminger
Published on
January 26, 2024
Read time
8 min read

In the rapidly evolving landscape of healthcare, there’s a visible shift towards IT outsourcing. According to iHealthcareAnalyst, the global healthcare IT outsourcing market will reach a staggering $64 billion by 2027 and with healthcare providers prioritizing patient care, they’re shifting their interest to outsourcing from IT vendors to help handle the complexities of healthcare technology.

Hospitals are at the forefront of this transformative movement, progressively turning to external vendors to meet a diverse array of software development needs. These encompass everything, from entrusting the management of entire IT departments to outsourcing specific functions such as custom software development, application support, and the modernization of legacy healthcare systems.

But still, why do healthcare providers embrace the outsourcing model with such enthusiasm? Further on, we will delve into the myriad advantages that healthcare providers can get by outsourcing their software development to third-party providers. We will also cover some essential considerations and strategies on how to choose a reliable third-party vendor, so keep reading to learn more.

Why do healthcare providers outsource their technology needs?

There are many reasons why particular healthcare providers could be interested in outsourcing, from cost savings to getting access to specialized expertise. Here are some other reasons why healthcare providers might consider IT outsourcing:

  1. Need to meet customer expectations: Health care organizations have to keep up with the rapid development of new technologies to meet patients’ needs more effectively.
  2. Lack of in-house expertise: Such things as data security, network management, and application support often require specialized knowledge that healthcare businesses might not have.
  3. Core priorities: By outsourcing non-core IT activities hospitals and healthcare organizations can concentrate on their primary mission of providing quality patient care.
  4. Talent shortages: Smaller hospitals in rural areas, in particular, struggle to attract and retain IT talent. Outsourcing firms can provide a sustainable solution while offering cost savings.
  5. Poor IT performance: Health care providers may face challenges with underperforming in-house IT departments. Collaborating with third-party vendors allows bringing best practices and qualified staff on board with adherence to stringent service level agreements (SLAs), leading to improved performance.

Now that we’ve covered the reasons for selecting an outsourcing partner, let’s explore what services medical professionals can outsource to an external partner, with Modeso serving as an example.

What can you outsource to software companies like Modeso?

Modeso is a Switzerland-based software development company specializing in the healthcare sector. We are dedicated to advancing the healthcare industry with cutting-edge technology solutions. Our expertise is tailored to address the complex demands of the healthcare industry. Below is an overview of our expertise and the value it adds:

Healthcare workflow automation

We help companies in the healthcare sector automate tasks such as managing health records, appointment scheduling, streamlining patient admission, and accelerating medical equipment manufacturing workflows. One example of our projects in this domain includes our collaboration with Dental Axess in the development of the Xflow platform.

Dental Axess, a global integrator of CAD/CAM and dental imaging solutions, sought Modeso’s assistance in developing a platform that streamlines the clear aligner manufacturing process. We successfully implemented various touchpoints within Xflow, allowing users to seamlessly navigate from the scanning stage to the final manufacturing phase, automating their workflow, improving data management, and fostering seamless collaboration between stakeholders. You can read more about this project in our case study.

Laboratory automation

With our deep understanding of laboratory operations across different industries from food and beverage to pharmacy and life science, we are the best fit for companies looking to build software that automates clinical laboratory workflows.

Modeso is a co-owner and software development team behind 1LIMS, a comprehensive Laboratory Information Management System designed to address the inefficiencies in manual quality management processes faced by QC labs in many companies. It offers centralized data management by integrating with ERP systems like SAP and laboratory devices to eliminate manual data transfer, creating a seamless flow. You can read more about our work building this solution in the case study.

Revenue cycle management

Modeso brings a unique blend of financial and healthcare expertise to deliver revenue cycle management solutions that meet the complex demands of the healthcare industry.

We have collaborated with prominent Swiss financial services like Rietmann and Partner, insurance organizations like Visana, wealth management firms like Albin Kistler, and financial technology providers like TWINT, and can leverage this extensive experience to optimize revenue processes in healthcare.

mHealth application development

We have the needed expertise to develop mobile applications that enhance medical accessibility and patient care while streamlining the workflow for healthcare professionals.

Using our help, you can develop mHealth apps that facilitate direct communication with medical experts, enable the creation of personalized meal plans, securely store medical history and data, manage workout routines and medicine intake, monitor various health symptoms, and more.

Whether you require solutions for telehealth, remote patient monitoring, or medical staff support, we can leverage our capabilities to build custom mhealth applications tailored to your specific needs.

Medical device software development

If you’re working on medical devices, let us simplify things for you. We specialize in seamlessly integrating medical devices with custom software components. Drawing from our extensive expertise in software development, user experience design, cloud technology, cybersecurity, and seamless integrations, we can deliver a compliant, secure, and user-friendly application that ensures optimal communication with your medical device.

Now that you know what you can outsource to a software development partner like Modeso, let’s talk about the potential risks and challenges of such partnerships.

The risks of outsourcing healthcare software development

Despite many benefits, outsourcing in healthcare isn’t without its risks. These include data security concerns, potential communication barriers, and a possible loss of control over certain IT processes. HHM Global discusses these risks in detail and suggests effective strategies to mitigate them. We’ve gathered them for you in the table below.

Risk Description Mitigation Strategies
Data security and privacy Risk of data breaches and privacy violations in handling sensitive patient information. Implement strict data protection protocols; regular security audits.
Quality concerns Potential for software not meeting required standards or regulatory compliance. Establish clear quality benchmarks; continuous monitoring and testing.
Control issues Loss of control over software development process due to reliance on a third party. Maintain strong project management and oversight.
Communication challenges Misunderstandings or delays due to geographical and cultural differences. Set up effective, frequent communication channels.
Cost overruns Hidden costs and scope changes leading to budget overruns. Conduct thorough initial cost analysis; monitor expenses closely.

Overall, outsourcing can be a valuable thing when approached with careful consideration of its potential challenges. By staying vigilant and implementing effective mitigation strategies, healthcare organizations can navigate the challenges while reaping the benefits of outsourcing healthcare software development. Ultimately, a well-balanced approach is key to ensuring success in this vital aspect of modern healthcare technology.

Now let’s dive into how we can minimize these risks, by choosing a reliable vendor.

How to choose a reliable vendor

Choosing the right vendor for healthcare IT outsourcing is a critical decision that can greatly impact your hospital’s success. To ensure you make the best choice, consider the following aspects:

  • Prioritize partnerships. Seek for service provider that would become a partner that is genuinely committed to your hospital’s success, going beyond basic service delivery.
  • Define clear expectations. Establish specific services and performance levels in your outsourcing agreement through robust Service Level Agreements (SLAs).
  • Study potential vendors carefully. Opt for a vendor with a proven track record in hospital IT outsourcing, understanding the unique workflows and requirements.
  • Be transparent. Provide accurate information about your hospital’sand needs, ensuring transparent communication.
  • Assess technical expertise. Study the vendor’s portfolio, pay attention to their technical expertise and their adaptability to evolving healthcare technology needs.
  • Confirm the vendor’s compliance with regulatory requirements and their commitment to data security.
  • Request proposals and compare. Gather proposals from multiple potential vendors and compare their offerings, pricing, and terms.


At Modeso, we believe that healthcare IT outsourcing is an essential step towards excellence and innovation in patient care. By positioning ourselves not just as a service provider, but as a strategic partner, we are committed to reshaping the healthcare landscape. Our focus is on creating solutions that seamlessly integrate technology with healthcare services, thereby enhancing the overall patient experience and operational efficiency. We understand the challenges and complexities that come with IT outsourcing. However, we view these not as obstacles, but as opportunities to demonstrate our expertise, reliability, and commitment to data security and regulatory compliance. Working closely with healthcare providers, we strive to meet their unique needs and tailor our services to address their existing challenges. Ultimately, our vision at Modeso is to empower healthcare providers through strategic IT outsourcing, turning potential challenges into catalysts for growth and success. We are dedicated to forging a future where technology and healthcare are united and work in sync. Join us on this journey towards a brighter healthcare future. Contact us today to learn more and get started!

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