The global demand for healthcare software development is skyrocketing, driven by increasing digital transformation, aging populations, and rising healthcare costs. In 2024, the global healthcare IT market is projected to reach around $609 billion, growing to 16.5% since 2021. Countries like the U.S., Germany, and the UK show the highest demand, largely due to their advanced healthcare systems and strong focus on digitalization. India’s healthcare software market is also expected to grow significantly, driven by government initiatives such as “Digital Health Mission” and increasing healthcare spending.

The U.S. leads in the adoption of healthcare software solutions, particularly in electronic health records (EHR), telemedicine, and AI-based diagnostics. Europe is expected to follow closely, while developing nations like India and China will see rapid growth due to healthcare modernization efforts.

The National Digital Health Mission (NDHM), launched by the Indian government in 2020, aims to digitize the country’s healthcare ecosystem. It involves creating unique health IDs for citizens, linked to digital health records, allowing seamless access to healthcare services. The initiative is part of the Ayushman Bharat Digital Mission (ABDM) and focuses on building a national digital health infrastructure.

In 2022, the government allocated ₹200 crores ($25 million) for the mission. Various tech companies like TCS and Infosys have contributed to the development of the digital health infrastructure. The initiative is ongoing and aims to transform healthcare delivery over the coming years. The results of the initiative are becoming visible today: more and more Indian software companies are maturing professionally in healthcare domain.

And of course, in addition to quickly expanding collaboration between Indian and North American healthcare industry businesses, we can observe similar development between India and Europe.

The first wave of collaboration attempts between Indian and European digital healthcare companies faced a number of obstacles which somewhat slow down progress in building India + Europe digital partnerships:

1. Regulatory Differences: European healthcare regulations, such as the General Data Protection Regulation (GDPR), are stringent, and aligning these with Indian regulatory standards can be challenging.
2. Data Privacy Concerns: European companies often have concerns about data privacy and security when collaborating with firms in India, especially given the cross-border data sharing.
3. Cultural and Operational Differences: Diverse working cultures, time zone variations, and different expectations on service delivery can complicate smooth collaborations.
4. Quality and Standards: Indian digital healthcare companies may need to align their solutions with Europe’s high standards in healthcare technology and software quality, ensuring compliance with certifications.

Though I could not find any publicly available consolidated figures showing the total turnover of collaborations between Indian and European software development companies in the healthcare industry, we know that such connections have been growing, with increasing investments in digital health solutions, AI-powered diagnostics, and telemedicine.

This growth is driven by India’s strong IT outsourcing sector and Europe’s demand for innovative, cost-effective digital healthcare solutions.

To obtain more actual information, you are welcome to read reports from consulting firms such as NASSCOM, McKinsey, or Deloitte.