Indian information technology and back-office companies can look forward to deals worth up to $22 billion (Rs 1.2 lakhcrore) after the US Supreme Court upheld a law designed to bring about far-reaching reforms in the American healthcare sector.
Some 30 million uninsured Americans are expected to buy healthcare insurance because of the reform, and new projects are expected in the form of data conversion, creation and management of electronic health records, as well as claims processing and insurance sales.
Last week, the US Supreme Court upheld the main elements of the Patient Protection and Affordable Care Act, President Barack Obama signature legislative achievement which he signed into law in 2010.
The overhaul has divided America, with the Republican opponents of Obama the ones who most vehemently against it because they believe it infringes on the right of Americans to choose.
The law, derisively called Obamacare by its opponents, makes it mandatory for all Americans to buy health coverage starting in 2014 or pay a penalty. Also, employers who fail to offer affordable coverage to full-time staff and their dependents will face penalties.
Experts said the decision will potentially unlock about $20 billion in outsourcing from the healthcare sector that Indian service providers have been eyeing. According to IT industry group Nasscom, of the $70 billion worth of software outsourcing that happens out of India, about $30 billion comes from insurance and financial services.
Healthcare accounts for another 4% of the IT-BPO industry, which is expected to grow slower this year, at 11-14% from 17% last year.
via Indian IT to benefit from Barack Obama’s healthcare victory – The Times of India.