Tips For Outsourcing Healthcare Software Development

Grand View Research estimates that the global market for digital health products was approximately USD 211.0 billion in 2022 and would increase at an average annual increase of 18.6% from 2023 to 2030...

digital health

The Healthcare industry is no different from the world’s rising digitization. Due to increasing smartphone usage, continued internet with fast networks, improvised Healthcare IT systems, and increased accessibility to virtual care, Healthcare companies are going through significant internal shifts. Grand View Research estimates that the global market for digital health products was approximately USD 211.0 billion in 2022 and would increase at an average annual increase of 18.6% from 2023 to 2030.

Patient care has changed as a result of Healthcare software. Medical professionals can serve patients better and achieve better results improving the effectiveness of healthcare services.

Types of Healthcare Software

For the medical industry, there are multiple types of software available. Here is a list of a few of them.

EHRs or Electronic Health Records
It is software that safely stores and handles patient information in real-time. The records keep track of lab test results, medical history, treatment plans, etc. of the patient.

Practice Management Software
It helps to lower manual work pressure and improve efficiency in the medical sector. This software handles all the administrative tasks like scheduling, billing, processing insurance claims, etc.

CDS or Clinical Decision Support
The software uses the AI algorithm to make sound decisions by evaluating data about patient care. Also, it offers helpful insights for medical or healthcare providers.

Telemedicine Software
It is another software that is helpful for remote patients. With this, the medical expert can improve patients’ engagement without physical contact. Also, the software streamlines treatments and consultations.

Advances in Healthcare Software Development in 2023

Here are some current trends featuring cutting-edge technology in creating healthcare software.

The demand for precise wellness tracking and real-time population administration is fuelling the telehealthcare industry. Businesses are driving this expansion with cutting-edge systems that can monitor, determine, and avoid disease while guaranteeing the security of patient data. Hardware improvements have allowed more individuals to use these life-saving programs, accounting for 41.5% of total market revenue! However, telehealth solutions are increasingly crucial in ensuring everyone has access to high-quality healthcare.

Healthcare has seen a significant transition due to the development of digital technologies, particularly with the Internet of Things (IoT). The IoT boosts productivity, including staff and patient tracking, medicine prescription optimization, and even tackling chronic diseases ensuring vital healthcare technology is available when required.

AR and VR
Consumers and medical organizations can benefit significantly from using Augmented Reality (AR) technology and Virtual Reality (VR). For instance, body mapping in a virtual world of healthcare enhances diagnosis and increases the efficacy of medical operations. VR also relates to mental health therapies, as virtual worlds can help people overcome specific phobias. According to a recent estimate from July 2022, the market for using AR and VR in healthcare is expected to grow to around $9.7 billion over the following five years. By 2027, this market, valued at roughly $2.7 billion, will have increased by almost 3.5.

Despite declining funding, Artificial Intelligence (AI) systems are becoming commonplace in the healthcare industry. They aid doctors in interpreting test data, making illness diagnoses easy, operating surgery more accurately, handling patient data and customer services more effectively.

Blockchain Technology
This technique allows for safer digital storage of information and uses centralized databases. Healthcare firms may now communicate patient data more safely and interface with several electronic health records (EHR) systems using blockchain technology. Additionally, you may design decentralized patient management systems that let patients handle and control their data.

Natural Language Processing
These tools allow for analyzing natural language information in audio, text, photos, and other media. NLP, for instance, aids in the processing and organizing of detailed, unsorted medical information in the healthcare industry, such as doctor’s notes. These details offer insight into what patients observe and help enhance the therapeutic procedures.

Pros and Cons of Outsourcing Custom Healthcare Software

Thus Healthcare software is a saving grace for this industry. You can outsource custom healthcare software to develop a system meeting your specific needs. However, there are some pros and cons of outsourcing healthcare software that you must know.


  • Outsourcing healthcare software offers a wide range of options for customizations to meet everyone’s needs.
  • The software products will be efficient, user-friendly, and offer hassle-free functioning.
  • You don’t need to worry about the technical and legal aspects of it as it is taken care of by the IT company.
  • The healthcare organization will grow with customized software with better user experience.


  • The development of customized software can be expensive.
  • Selecting the wrong software may bring unnecessary complications and it will be a waste of time and money.

Tips on Outsourcing Healthcare Software Development

Selecting an ideal IT partner with the necessary experience that matches your healthcare software project is crucial. Finding the appropriate job model is another problem. The main choices are hiring experts on full-time and outsourcing with hourly rates. To start with, get clear on your project requirements. Here are some pointers for selecting a trustworthy outsourcing partner:

Evaluate Various Vendors
Investigate a vendor’s portfolio before choosing them. Look at previously finished projects and inquire about their field of experience. And select a partner that is qualified for your domain, knowledgeable, and sensitive to your requirements.

Verify Safety Requirements
Verify that the supplier can secure patient data and make software that adheres to HIPAA compliance. It assists in information security and guards against unwanted access to private medical records.

Examine the Cost Strategy
Select a business partner whose cost structure meets your price range. Make sure it can adapt to your shifting needs and that the payment conditions are flexible.

Examine their Project Leadership and Interaction Strategies
With your IT team, communication should be simple. Even though you are in multiple time zones, verify that they have access to frequent feedback sessions with proper project management.

Hiring It Teams
Healthcare organizations frequently choose to hire in-house teams, which has several benefits but also some drawbacks. It could appear that employing a staff member in-house is a more economical and dependable choice for a lengthy medical project. This solution may be effective if you require a team to communicate for an extended period continually.

Common Challenges While Outsourcing Healthcare Software Development

Like every other niche, healthcare software development also comes with unavoidable challenges that we will discuss below.

Culture, Language, and Geographic Barriers
Different cultures and languages can become a significant challenge that can lead to a communication barrier between you and your IT company. As a result, there may occur misinterpretation or miscommunication of requirements.

Limited Technical Expertise
Finding talents with the right combination of experience and skill is hard. Therefore, outsourcing can be a great solution to get access to a pool of high talent while saving money.

Software development in the healthcare sector requires complying with regulations such as HIPAA, GDPR, and FDA. Additionally, they must strictly follow all rules and regulations. Hence, you must partner with an IT company that is aware of these and can help your system comply with them for security and privacy.

Challenges in Integration
A few online health tools often encourage data sharing. For example, a smartwatch or fitness app asks the users for few information to offer them personalized suggestions. Software that integrates easily with other devices and proper maintenance service is required from the software company.

Pricing of Healthcare Software Development

The average price for designing a healthcare application can range from $40,000 to $300,000. The following are the main elements that have an impact on cost:

  • Team – Employing specialists is more expensive than outsourcing an IT team. So, collaborating with foreign developers is a more cost-effective choice.
  • Timeline – Owing to the utmost urgency, you could have to spend additional cash if you would like to have medical software sooner.
  • Software Features – Complex healthcare solutions do take more time and money. These applications are a good investment since they give your intended consumers additional functions for a better experience.
  • Development of Web and Mobile Applications – A critical selection is to develop a mobile and web healthcare app. This with the need for complex functionality will raise the development cost is critical.
  • Designing UX/UI – Outstanding UI/UX design concentrates on creating flexible user interfaces for pleasurable user experiences based on your target demographic. For a versatile healthcare software layout, its UX/UI design costs approx $6,000 for up to 200 hours.
  • Tests and Quality Control – Comprehensive testing is essential to ensure optimum performance and obliterate defects. Some agencies use a combination of both manual and computerized testing to provide insightful data on how users interact with apps, enabling features and UI improvements.

Note that the numbers above are just estimates since many variables affect how much it costs to develop healthcare software.


Outsourcing healthcare software development is one of the most effective and easiest ways to convert ideas into reality. The process of software development outsourcing gives you the benefit of a group of highly qualified professionals.

It guarantees that medical treatments are swift and effective in meeting your unique demands. While providing those you serve with the most excellent treatment possible, you can remain ahead of the trend.