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Spending on information technology products and services will grow at a brisk clip, according to Datamonitor, a business information company. Through 2010, Datamonitor expects that the payer market for health care IT will expand by a 7 percent compound annual rate over five years.
The company expects slightly more market expansion in the provider sector — 7.4 percent — than in the payer sector.
Large payer organizations are more likely to customize their applications, especially those applications that distinguish them from competitors, says Jocelyn Young, Datamonitor's research director. Smaller payers are more likely to purchase packaged software because of ease of deployment and integration with other systems.
Young believes that continued investment will be driven by the overall need for organizations to do more with less, as well as the need to be more efficient in key areas of business.
Datamonitor makes these observations in a report titled "Technology Opportunities in the North American Healthcare Market."
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