target audience: TECH SUPPLIER Publication date: Sep 2024 - Document type: IDC Survey Spotlight - Doc Document number: # US52579524
Key Factors Impacting Healthcare IT Spending and Strategies for 2024 and Beyond
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Abstract
This IDC Survey Spotlight highlights the key factors impacting healthcare IT spending and strategies for 2024 and beyond. Healthcare respondents to IDC's Future Enterprise Resiliency and Spending (FERS) Survey, Wave 6, report that managing demand for AI model building and software along with inflation driving up vendor pricing as top risk factors to their overall tech strategy and spending for the next 12 months. Healthcare payers also called out supply chain constraints limiting access to IT hardware as a prime risk factor. This speaks to a larger trend in the healthcare industry related to the "race" to adopt AI while maintaining necessary investments for business continuity and other planned innovation investments.
With a positive outlook at budget changes (~85% of respondents reporting 2024 budgets will stay the course or actually increase), healthcare and life sciences are doubling down on investments that will drive long-term efficiency gains and operational excellence. This is further exemplified by healthcare and life sciences stating that security, risk, and compliance initiatives (31%) followed by AI and automation (30%) as being the most immune investment areas to any budget pull back. Payers followed suit with priority investments areas of security, risk, and compliance (42%), however, customer experience initiatives (33%) emerged as the second-highest area of budget reduction immunity.
When asked about current status of GenAI investments and strategies, healthcare and life sciences reported initial testing and POC work (38%), investing significantly (33%), and already have GenAI in production (18%) as the top status categories, while payers appear to be falling behind with the majority (46%) still in POC phase, followed by no significant work (30%), and only 16% reported having plans to invest significantly in the next 12 months. These trends will be ones to watch with reported budget immune areas aligning closely with GenAI use cases such as customer experience supported through AI-driven hyper-personalization capabilities.