Supply Chain Management
Examining the Efficiency of Outsourcing in India’s Healthcare Sector Using Data Envelopment Analysis

Article Details
Pub. Date : Mar, 2019
Product Name : The IUP Journal of Supply Chain Management
Product Type : Article
Product Code : IJSCM11903
Author Name : Debraj Mishra and D K Mahalik
Availability : YES
Subject/Domain : Strategic
Download Format : PDF Format
No. of Pages : 15



Outsourcing is a global phenomenon not only to remain competitive but also to survive in the fast changing environment across different sectors of industry, and healthcare sector is no exception. Financial pressures like reduced reimbursements by the payers, rise in input cost and lower payment by the patients are forcing many healthcare organizations to opt for outsourcing. It is difficult to generalize the theories and practices underlying the practice of outsourcing in healthcare. On the other hand, it is very difficult to closely measure the benefit of outsourcing, particularly in healthcare, as it is not easy to quantify the benefit. This paper presents a study on the current practice of outsourcing in healthcare sector in India, and measures the performance of outsourcing activity through benchmarking, using conventional Data Envelopment Analysis (DEA).


Countries all over the world are spending more on health, but still people are paying much out of their pockets. The spending on healthcare is growing faster than the global economy amounting to 10% of Global Domestic Product (GDP). The World Health Organization’s report reveals that the upward trend in the average healthcare spending is high in low and middle income countries which is about 6% per annum as compared to 4% in high income countries. Driven by rise in income level, healthcare awareness and increased penetration of health insurance, the healthcare market in India is expected to reach US$372 bn by 2022.

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