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India's Next Export: US Healthcare Operations
24 Jul
Summary
- US healthcare spending reached $5.7 trillion in 2025, a significant portion of GDP.
- Indian firms Sagility and IKS Health lead US healthcare administrative outsourcing.
- This trend could establish healthcare operations as India's next major service export.
The United States' healthcare system, largely insurance-driven, saw nearly $5.7 trillion spent in 2025, with projections reaching $9 trillion by 2035. A substantial portion of this expenditure is allocated to administrative tasks, creating a large market for outsourcing services.
Indian companies Sagility and Inventurus Knowledge Solution (IKS Health) are emerging as key players in this sector, catering to different ends of the US healthcare value chain. Sagility primarily serves health insurers, offering services like claims management and member engagement, while IKS Health assists healthcare providers with clinical documentation and revenue cycle management.
This growing outsourcing trend in US healthcare operations, driven by factors like Medical Loss Ratio rules for insurers and high claim denial rates for providers, positions it as a potential next specialized service export for India, akin to the IT services boom.
Both Sagility and IKS Health are transforming from traditional business process management to technology-led operations, incorporating AI and automation. Their robust financial performances and sticky client relationships underscore the sector's potential and the companies' strategic positions for future growth.
