September 18, 2009, 6:06 AM — Perot Systems has bagged a 10-year IT outsourcing contract in India, its first outside the U.S.
The win reflects Perot's bid to grow its health-care business in markets other than the U.S., as well as in emerging markets like India, China, Brazil, and Mexico, company executives said on Friday.
In the second quarter, 48 percent of Perot's revenue came from the health-care industry. But only 4.1 percent of the company's revenue from the health-care industry was from outside the U.S., up from 2.5 percent two years ago, said Kevin Fickenscher, executive vice president for International Healthcare at Perot, in a telephone interview.
Expansion outside the U.S. is a key focus area for Perot, said Raj Asava, Perot's chief strategy officer.
For its health-care business, the company is targeting emerging markets in the Middle East, China, India, and Latin America, besides more mature markets such as the U.K. and Germany.
The maturing health-care industry in these emerging markets has a big appetite and also funds to invest in technologies such as electronic health records and clinical information systems, Asava said.
The contract with Max Healthcare, a large hospital chain in India, has an initial value of US$18 million, but could go up in value as more applications and services are added, Perot said.
Besides running the applications already installed at Max, Perot will also deploy an electronic health records system and other IT infrastructure, Fickenscher said. The deployment will be around the open source VistA (Veterans Health Information Systems and Technology Architecture) electronic health record and health information system, he added.
Perot already has a services subsidiary in India with about 9,000 staff that offer outsourcing services to customers in the U.S., Europe, and other parts of the world. About 60 percent of these staff do work for the health-care industry.
Multinational and Indian service providers are targeting India's growing services market, including in the telecommunications sector where a number of mobile service providers are outsourcing their IT infrastructure.
The immediate opportunity for vendors of IT targeting the health-care industry is from private sector providers, but government run hospitals will soon follow, Fickenscher said.