Indian BPOs Likely To Gain From U.S. Health Care System Overhaul

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By Dhanya Ann Thoppil, endocrinologist Of DOW JONES NEWSWIRES

BANGALORE -(Dow Jones)- India’s outsourcing firms will gain new orders after the U.S., one their largest markets, is overhauling their healthcare system, which could call for insurers and healthcare providers to cut expenses.

The U.S. House Sunday gave final approval to a far-reaching health-care overhaul bill promising to bring health insurance to 32 million Americans while subjecting U.S. industries to a dramatically redrawn and newly regulated marketplace.

BPO companies such as Firstsource Solutions Ltd. (532809.BY), WNS Holdings Ltd. (WNS), Patni Computer Systems Ltd. (532517.BY), Cognizant Technology Solutions Corp. (CTSH), the BPO units of Infosys Technologies Ltd. (500209.BY) and Wipro Ltd. (507685.BY) may benefit, say analysts.

“This reform is at the intersection of two of Wipro’s strategic business units–health care and government–and we are geared up to address the technology requirements in these sectors,” said Rajiv Shah, senior vice president, healthcare vertical, at Wipro Technologies.

Wipro Ltd. is India’s third-largest software exporter by revenue.

Analysts expect the U.S. government to spend about $15 billion to $20 billion on healthcare technology services, a major share of which is expected to come to the Indian business process outsourcing companies.

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Martin Swinney

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