Navigating the complexities of healthcare IT requires both specialized industry expertise and knowledge of the latest tech innovations. According to Precedence Research, the global healthcare tech market will exceed $1,383.03B by 2034. A substantial part of this growth is driven by providers that turn to offshore healthcare software development to bridge talent gaps, enhance capabilities, and optimize costs. Yet, strict regulations and concerns around data security often make businesses hesitate to outsource critical IT operations.

Healthcare IT market size

Despite these challenges, it is possible to develop a successful offshore strategy with the right approach and partner. This guide explores key considerations for healthcare businesses when choosing an offshore software development provider, addressing common offshore concerns, and offering practical solutions. Let’s dive in!

Benefits of offshore healthcare software development

Offshore software development is a strategic move for healthcare providers aiming to enhance engineering capabilities while optimizing costs. Let’s explore these and other key advantages that make it a smart choice for many healthcare businesses:

Access to global talent with domain knowledge

The lack of tech talent with expertise in healthcare is a major roadblock to development projects. Going for offshore healthcare software development allows providers to tap into a global talent pool with specialized industry knowledge. By partnering with specialists who already have implemented similar solutions and possess in-depth knowledge of healthcare standards, you can prevent delays, compliance issues, and rework. 

So, if you aim to develop advanced healthcare solutions, such as telemedicine platforms or patient management systems, you might consider partnering with software developers from countries like Poland, Ukraine, or Romania. IT experts in these popular outsourcing destinations have extensive experience in building healthcare platforms. For instance, out of more than 1,450 tech vendors in Poland, around 500 specialize in software development for healthcare.

Cost efficiency

Outsourcing software development can be a driver of cost optimization for healthcare providers. Offshore engineers typically come at a lower cost compared to local talent, helping to decrease total development expenses. Additionally, the savings go beyond just salaries and involve reduced expenses for infrastructure, office facilities, and employee benefits. This allows you to reduce operational expenses without compromising quality. 

Faster time to market

Speed is crucial when delivering new healthcare solutions, where delays can hinder the ability to meet patient needs and adapt to market changes. So, another reason why healthcare businesses go for offshore software development is to enable a faster solution rollout. Due to the ability to assemble skilled teams and initiate projects without lengthy recruitment processes, they can gain a competitive advantage. Just compare—in the US, the average time to hire tech specialists is 12-18 weeks. By relying on a trustworthy tech company like N-iX you can start cooperation with the team of right experts in 3-4 weeks. 

Ability to focus on core business activities

Outsourcing software development allows healthcare providers to concentrate on their core strategic objectives—delivering quality care and enhancing patient outcomes. By entrusting software projects to offshore specialists, you can free up internal resources that would otherwise be consumed by complex IT processes. 

Quick project scaling

Another advantage of offshoring is the ability of healthcare providers to rapidly scale their projects in response to changing market demands or internal requirements. Need to quickly implement new features in an EMR system or enhance patient data analytics capabilities? Then, swiftly scale up your development capacity and scale down once the project is complete—without the delays often associated with hiring or restructuring in-house teams. 

Managed HR activities for onboarding and offboarding

By partnering with an offshore software engineering vendor, you can offload the time-consuming tasks of onboarding and offboarding team members. Instead of navigating the complexities of hiring, training, and releasing talent, you can rely on your tech partner to handle these processes. For healthcare providers, this means smoother transitions, quicker team setups, and less administrative burden.

Key benefits of offshore healthcare software development

What criteria define a reliable partner for offshore healthcare software development?

Finding the right partner can make or break your healthcare software project. However, due to a large number of engineering vendors with expertise in healthcare, this might be a challenging task for businesses. According to Clutch, there are around 2,000 companies worldwide that offer healthcare software development services. So, what should you look for to ensure a successful partnership? Here’s what sets apart a trusted tech partner from the rest:

Proven track record of healthcare projects

Imagine you need a surgeon for a complex procedure. Would you trust someone who's just starting out, or someone with years of experience in similar surgeries? The same principle applies when choosing a partner for offshore healthcare software development. In this case, a reliable partner should have a solid track record of delivering healthcare projects. This experience demonstrates their understanding of the industry’s unique needs, such as integrating with existing healthcare systems, ensuring interoperability, and managing sensitive patient data.

Comprehensive expertise in healthcare solution development 

It's common for healthcare providers to start with one solution—like a patient portal or a telemedicine platform—and later discover the need for additional capabilities, such as medical billing or hospital management systems. That’s why your potential software development partner should offer a wide range of specialized solutions to address the diverse needs of the industry. For example, at N-iX, we build a wide range of custom healthcare solutions, from EMR/EHR software and hospital information systems (HIS) to telemedicine software, virtual care platforms, and software as a medical device (SaMD) solutions.

More on the topic: Healthcare mobile app development: Everything you need to know

Advanced technological capabilities

Technologies like AI, advanced data analytics, and IoT are driving transformative changes in healthcare. According to the Deloitte 2024 Global Healthcare Sector Outlook, AI alone has the potential to save the US healthcare system up to $360B annually over the next five years. Besides cost savings, implementing these technologies can improve patient care through predictive diagnostics, streamline operations with real-time data insights, and enable remote patient monitoring and management. Therefore, when selecting a tech partner, look for engineering companies with diverse engineering expertise and focus on innovations.

Regulatory and data security compliance

When it comes to healthcare software development, ensuring compliance with data protection regulations is paramount. Managing sensitive patient data means that any software development partner must have a deep understanding of essential data privacy regulations like industry-specific HIPAA or GDPR. If you opt for offshore software development for healthcare, it's crucial to choose a partner that prioritizes compliance. This ensures that the software they build meets privacy and security requirements, safeguarding patient information and minimizing legal risks.

Post-launch support

A trustworthy partner for offshore healthcare software development should offer more than just initial implementation—they should be committed to supporting your solution after it goes live. Many healthcare solutions need ongoing updates, performance monitoring, and security patches to ensure they continue to meet industry standards and user needs. Thus, choose a tech partner that helps with post-launch support, including troubleshooting, software updates, and scalability adjustments. 

Related: 15 top healthcare software development companies

Challenges of offshore healthcare software development and how we solve them 

Offshoring healthcare software projects can unlock significant advantages, but it’s not without its hurdles. Let’s look at the key obstacles and how a trusted partner like N-iX can turn them into opportunities:

Data security and privacy concerns

There are significantly more data breaches in the healthcare sector than in other industries, as healthcare data holds high value on the black market. This makes data security a critical concern for medical providers that go for offshore software development. Besides reputation, the financial impact of a data breach can be devastating, leading to substantial fines and legal fees. According to the HIPAA Journal, the average HIPAA penalty in 2024 is approximately $712,800.

Average HIPAA penalty, by year

Handling sensitive healthcare data across borders adds another layer of complexity. It requires navigating different regulatory frameworks like HIPAA, GDPR, or local data protection laws, which can vary significantly from country to country. 

N-iX approach: N-iX engineers prioritize data security in healthcare software development by adhering to global regulations like HIPAA and GDPR. Our approach includes end-to-end encryption, data anonymization, secure storage, and regular security audits. Plus, we conduct vulnerability assessments and penetration testing to proactively address risks and ensure compliance with legal frameworks for safer data management.

Communication barriers 

One of the common offshore challenges is overcoming communication and language barriers. Whether it’s offshore or nearshore software development for healthcare, the communication with your remote engineering team is usually in English. Many companies hesitate to outsource their projects overseas due to concerns about the language skills of the offshore team. They worry that miscommunication could slow down progress, lead to errors, and create frustration on both sides. Communication barriers can indeed lead to misunderstandings, delays, and misaligned expectations, which may ultimately impact the success of a project. How to avoid that?

N-iX approach: Here, at N-iX, we prioritize English language skills and communication abilities just as much as technical expertise during our hiring process. This ensures that our engineers are not only skilled in their field but also capable of effective communication with clients and their in-house teams. To enhance collaboration, we rely on videoconferencing and project management tools, ensuring transparency and a clear understanding of project details among all parties.

Ensuring software quality 

The focus on quality is particularly crucial in healthcare, where software failures can affect patient care and safety. However, maintaining consistent quality control becomes challenging when working with remote teams. Geographical distance can make it harder to monitor daily progress, conduct in-person reviews, and ensure that all team members fully understand the project's standards and expectations. 

N-iX approach: Our approach to quality management emphasizes regular audits, thorough code reviews, and maintaining full project transparency. By fostering a culture of continuous improvement and accountability, we ensure that our remote teams deliver high-quality software that aligns with the client’s expectations.

Why should you choose N-iX as your reliable company for offshore healthcare software development?

If you need a reliable partner to handle your healthcare software development, N-iX is ready to support your project with proven expertise and a commitment to delivering quality software. With over 21 years of industry experience, we create tailored solutions that enhance patient care and streamline processes. Our comprehensive services range from developing telemedicine and virtual care platforms to implementing patient portals and patient engagement solutions. We also specialize in EMR/EHR software development, as well as medical billing and health information exchange solution implementation. N-iX’s track record spans collaborations with leading health tech companies, medical device manufacturers, and clinical research organizations, including Think Research, Brighter, Cure Forward, and Weinmann Emergency.

At N-iX, we prioritize the security and privacy of patient data. Our adherence to HIPAA standards guarantees that your solutions protect sensitive information, while our compliance with GDPR ensures that we respect data privacy regulations. Additionally, our certifications, including ISO 9001:2008, ISO 27001, and ISO/IEC 27701:2019, further reinforce our commitment to delivering high-quality services.

With a team of over 2,200 skilled professionals in technologies like AI, Generative AI, IoT, and data science, N-iX is well-equipped to drive innovation in the healthcare sector. Contact us today to explore how we can contribute to your technological advancement and growth!

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