First announced in 2014 by Ethereum co-founder Gavin Wood, today, the concept of the next-generation internet, called Web 3.0, opens up a whole niche for startups. Below, we will look at its basics, describe its advantages and disadvantages, and also find out what technologies can be used to implement Web 3.0 solutions.
What Is Web 3.0?
The Internet that we are used to is defined as Web 2.0. It allows all users to upload content themselves, making it publicly available. This became possible thanks to the emergence of social networks, which over time, instead of providing users with the desired freedom, began to limit them with all sorts of rules and censorship. This, in turn, has become the main reason for looking for new, alternative concepts that would go against these restrictions, giving users more control over their publications.
In this regard, instead of centralized networks, the operation of which was tied to central servers, decentralization was proposed. It had to provide a “smart” distribution of content to servers located throughout the world. Thanks to this approach, widespread availability of user content would be ensured. With this approach, to block specific publications, the consent of all network nodes is needed – instead of just one, as was the case with Web 2.0.
As for technologies capable of implementing a decentralized network architecture, these include, first of all, blockchain, which would transform the centralized Internet into a distributed content database. Actually, this radical transformation would give the world the Web 3.0 Internet.
Today the simplest Web 3.0 formula looks like this: "read + write + own".
Why Is Web 3.0 Important?
Due to its undeniable value for ordinary Internet users, Web 3.0 can be of particular interest to businesses that are constantly developing in the digital plane.
Specifically, by increasing content accessibility, reclaiming ownership of user-created content, and overall end-to-end user centricity, businesses can benefit from launching personalized Web3 websites, apps, and services that aim to increase trust and engagement among their users, as well as providing advertising based on their behavioral patterns.
This way, businesses can strengthen their relationships with consumers and, therefore, increase their profits.
How Web 3.0 Works
As you can already understand from the above, Web 3.0 is based on decentralized networks, but this description is not complete. In particular, Web 3.0 also implies that any Web3 website or application must be able to process information like the human brain, that is, as artificial intelligence and machine learning already do today. This is how an alternative name for the 3rd generation of the Internet has appeared – the semantic web.
This requirement for the “intelligence” of the Internet arose for a reason: since, due to decentralization, users and machines interact with data directly, this data must be recognized by the network not only using predefined algorithms – now, its context has become no less important.
Benefits of Web 3.0
With the right approach, virtually any company that continually grows its online presence can reap a number of benefits from Web 3.0 software development. These include the following:
Increasing customer loyalty achieved through the AI and smart chatbot introduction aimed at completely personalizing digital content and services;
Improved analytics thanks to more complete and accurate sets of user data obtained from disparate sources (and, as a result – the ability to create more accurate marketing strategies);
Automation of a wider range of tasks provided by blockchain, ML, and AI;
Increased security that only distributed registry technologies can guarantee;
New partnership opportunities without the involvement of third parties thanks to blockchain and smart contracts;
Supply chain optimization, also enabled by blockchain that provides full control and transparency of supply chain operations;
Copyright protection provided by giving users full control over their data (also thanks to blockchain).
Challenges of Web 3.0
Despite the existence of decentralized solutions, it is too early to say that the 3rd-gen Internet already exists. To make this thesis true, developers have to implement connectivity between Web3 solutions so that the data they collect and process become globally accessible.
For example, if we are talking about Web 2.0, in it, data exchange occurs via the HTTP protocol. In this case, there is an intermediary between the participants (namely, the server) on which information, databases, applications, etc. are stored. The concept of Web 3.0 implies the organization of a new level of network interaction, without a server. So far, such technologies do not exist – it can be explained by the limitations of physical equipment and infrastructure in general.
An equally serious challenge is to ensure proper speed of data transfer and processing in the Web 3.0 development solutions. In a more global sense, this means a scalability problem since the need to maintain a proper balance between decentralization and security is most often achieved by limiting throughput, as we can see in the examples of Bitcoin and Ethereum.
At the same time, options to circumvent these obstacles are already being considered – a potential way out of the situation could be the creation of a cross-chain infrastructure to integrate all blockchain networks. Similar solutions (though not so large-scale as to replace the whole Web 2.0) have already been implemented in the Polkadot and Cosmos projects.
Technologies that are powering Web 3.0
Earlier we talked about the need to use AI and ML in Web 3.0, but let's take a look at the full list of technologies that will be relevant for each Web 3.0 developer.
Artificial Intelligence and Machine Learning
Together with machine learning, artificial intelligence in Web 3.0 provides better analysis of user data and creates a personalized user experience based on it. Thanks to this, users get the content they need faster, without getting confused by colossal volumes of useless or only partially useful information. These technologies can also be responsible for automating resource-intensive processes such as data sorting and forecasting. Finally, we should not discount natural language processing – one of the areas of AI that ensures more accurate and context-sensitive recognition of user queries by machines.
Blockchain and other distributed ledger technologies (DLT)
In Web 3.0 application development, blockchain and other DLTs provide better security when storing user data by eliminating centralized control over it. These technologies also make it possible to create tokens (including non-fungible ones, NFTs), which are decentralized digital assets stored on the blockchain. They define ownership of real or virtual objects and, in the future, can be used to protect copyright.
3D graphics and animation
With the faster content delivery typical to Web3, 3D graphics and animation solutions will become commonplace. In particular, Web 3.0 opens up new opportunities for creating realistic three-dimensional objects to ensure an immersive experience that was previously unavailable with any other digital technologies. Supplemented with reality-like animation, these objects can act as avatars of living users and thereby make them full-fledged participants in meta universes.
The future of Web 3.0
Given all of the above, it is unlikely that Web 3.0 will be a single system – we are sure, it will be a comprehensive solution that goes beyond the traditional web. This approach will ensure the management of the Internet by the user community and exclude content monopolization.
As for specific areas of development, the most promising are considered to be meta universes that combine physical, augmented, and virtual realities with their own blockchain-based tokenomics. At the same time, it is important to understand that despite the many points of contact, currently, metaverses and Web 3.0 are different things since those that exist today are still products from centralized IT companies, with their typical problems. Therefore, the solutions that will mark the emergence of Web 3.0 will differ significantly both from the point of view of technical implementation and the very concept of interaction with users as well.
If you, like us, consider the Web 3.0 direction to be promising for your business and already have an idea that will bring this concept closer to reality, you can contact our Web 3.0 development company. We will advise you on the implementation of your project and also select specialists who will guide you from collecting project requirements to its launch.
With the global aging population and the rise of chronic diseases, the remote patient monitoring market is booming as ever. From 2023 to 2024, it grew from $30.97B to $36.31B. And it won't stop here. Insider Intelligence predicts 70.6M US patients will use software for remote patient monitoring by 2025.
We can't overstate the importance of remote patient monitoring software. Such apps improve access to care, reduce hospital readmissions, and help save up to 60% on hospital visits, which results in higher-quality treatment in the comfort of patients' homes.
And benefits don't end up here. With ongoing digitalization via IoT and modernization of the healthcare system, don't wait for the best time for remote patient monitoring software development. The best time is now.
We've detailed remote patient monitoring apps below and covered their benefits, architecture, and top examples. You'll also see how Darly Solutions crafted an app for the health tech company. Read on, and stay tuned.
RPM monitoring software—is a digital tool for wearables, mobile apps, and medical devices that collects, analyzes, and shares patient data with medical personnel. Heart rate, blood sugar, and oxygen levels are among the most vital metrics. RPM software scores help catch health issues early, manage chronic conditions, and aid post-operative recovery.
How remote patient monitoring software works
From heart rate to blood glucose, each RPM system is designed to monitor a specific aspect of the body. However, elements included in any remote patient monitoring software development are typically the same. This is how the RPM system works:
Collects and exchanges data. Once calibrated, the devices send the data from the patient to the provider. The devices must have a Wi-Fi or LTE adapter for successful transfer. The data can also be sent via Bluetooth to IoT mobile apps via RPM devices.
Centralizes storage.
The provider securely stores the data collected from various sources, including patient devices, analytics systems, and e-medicine.
Analyze. The data is processed using advanced AI for management and analytics. Alerts are sent to caregivers, providers, and patients as needed, per their preferences.
Broadcasts.
Remote monitoring systems become telemedicine platforms when integrated with communication features like video conferencing, simplifying doctor-patient interaction.
Sends emergency notifications. When doctors identify health issues requiring daily monitoring, they oversee the data collected by the RPM system. Notably, it can notify emergency services if a patient needs urgent care. For non-urgent cases, patients can receive instructions for the next steps. However, HIPAA and similar regulations may restrict including sensitive patient information in certain notifications to protect privacy.
Nevertheless, the RPM is part of the broader automation revolution; it has universal healthcare benefits overall. Let's examine the main of them:
Better access to health services
With remote patient monitoring software, medical services have no geographical boundaries. Patients can get timely medical attention at home and manage their health, fostering a greater sense of control under health conditions.
Improved patient outcomes
A study found that RPM cut hospital admissions for chronic care complications by 19% to 41%, which results in improved patient outcomes.
Cost-effective care with reduced readmissions
The average cost of hospital readmission is about $15,200, which makes the prevention of readmissions through remote patient monitoring software financially beneficial for both patients and providers. Even more, it is a well-established fact that early detection generally translates to lower healthcare costs.
Better client engagement and satisfaction
Over 94% of patients are satisfied with RPM's care. It sparks their curiosity about their health and boosts engagement. Such an increased sense of involvement often inspires commitment to treatment plans.
Early detection and timely intervention
The CDC reports that RPM can cut chronic disease complications by 40%. This highlights the need for swift intervention to reduce health risks.
Components of remote patient monitoring software
There is no one-fit RPM soft, as it differs in nature. However, each patient monitoring system generally has 3 to 5 basic components. Let’s delve into them:
Personal monitoring devices
From continuous glucose and heart rate monitors to blood pressure cuffs, digital scales, and peak flow meters.
Patient-side mobile applications
Prioritize user experience, making it easy for patients to access their health data. Additionally, they offer features like medication reminders and secure chats with healthcare providers.
Cloud database
Cloud repositories allow healthcare providers to store large patient data securely. They are scalable and accessible, adapting to growing datasets for long-term monitoring.
Hospital-side web app
These applications are part of hospital management software. They ensure compliance, enable integration, and support decision-making. Additionally, they offer reporting, notifications, and analytics to improve patient care.
Other modules
These comprise decision support systems, reporting tools, notification systems, and analytics platforms.
Essential features in remote patient monitoring solutions
Here are the essential features of a remote patient monitoring (RPM) solution:
Real-time tracking of patient vital signs
Wearable sensors, fitness trackers, blood pressure monitors, and glucose meters perfectly gather and handle real-time health metrics. Then, this data is sent to healthcare providers and added to Electronic Health Records (EHRs) for timely interventions and informed decisions preventing complications.
Intuitive interfaces and user-friendly features
Machines must be easy to set up, a breeze to wear, and simple to operate. Meanwhile, patients should access their data effortlessly through a smooth web or mobile app to track their progress. This connection allows seamless communication with healthcare providers, ensuring everyone's on the same page.
Accessibility features
Ultimately, create a system with all users in mind. Consider accessibility guidelines like WCAG and CVAA to pave the way for inclusive innovation. Encompass voice control for effortless data entry, navigation, and text-to-speech features to support people with dyslexia and other disabilities. Moreover, a patient-first design shines with screen reader compatibility, high-contrast modes, and a crystal-clear interface.
Personalized risk alerts and reminders
For swift and customizable alerts, the RPM system must adjust thresholds. For example, alerts can be sent when vital signs fall outside preset limits. This enables timely intervention to reduce the risk of adverse events.
Safe data transmission and storage
Patient data security is a top priority in remote patient monitoring software development. Thus, apps must comply with all regulations like HIPAA, as they protect the privacy and security of patient data and save from hefty fines.
Smooth EHR integration
EHR integration allows the automatic transfer of RPM data, giving healthcare providers access to complete patient histories for better decision-making and outcomes.
Reports and analysis of patient health data
Advanced analytics and reporting in remote patient monitoring software development provide valuable data insights for healthcare professionals (for data-driven decisions) and patients (to motivate healthier choices).
The architecture of a remote patient monitoring system
Remote health monitoring systems are designed with a multi-layered architecture. Basically, it has five core components that enable uninterrupted data flow within the system. Let’s break into the point of the whole structure:
Smart-connected sensors for health tracking
The sensor layer comprises remote monitoring devices such as EKGs, sleep trackers, smartwatches, and blood pressure monitors. Then, they transmit this data to the dedicated mobile app via Bluetooth or to the cloud via the Internet.
Patient interface
Patient-facing RPM apps collect real-time health data from connected medical devices, allowing manual entry of symptoms and medication intake. RPM apps often include data visualizations for tracking health trends and may have integrated telemedicine features, such as video conferencing for appointments, follow-ups, prescriptions, and virtual consultations.
Cloud RPM server
Cloud services form the core of RPM systems, providing secure storage, processing, and data analysis from devices and the RPM app. This engine also integrates with EHR systems to access patient health information (PHI) in FHIR format. It can identify trends, such as early signs of complications.
Medical staff dashboard
Patient data flows bidirectionally between the medical staff interface and the cloud RPM server, enabling effective management by care teams.
Data visualization module. Via charts and graphs that show trends in vital signs, medication adherence, and other data, the module gives providers a 360-degree view of the patient.
Alert management module. The system promptly alerts clinicians to critical situations and device failures in real-time.
Reporting module. The module generates custom reports on patient data, which hugely help track progress and gain insights over time.
Communication module. This module has two-way messaging, video chat, and/or telephony integration and is made for secure, remote communication between clinicians and patients.
Appointment management module.
This module handles appointment scheduling and patient-provider communication, allowing both patients and providers to request appointments.
Depending on the organization's needs, a doctor-facing RPM interface can include other modules, such as patient management, care plans, and patient education.
Admin web panel
A key part of the RPM architecture is a control dashboard. It helps with admin tasks like configuring roles, managing patients, and setting alarms.
Once you have a clear idea for your software product, find an experienced dev company to implement it. When contacting your tech partner, you don't need detailed software requirements. A high-level understanding of the functionalities is enough to get started for any custom healthcare software development services stages. Let’s break them down:
Step 1: Requirement collection and analysis
The process starts by refining your product vision. Then, define project goals based on the health conditions your RPM solution will address. Your team will then identify core functions, pick the best tech stack, and plan the app's architecture. If integration with systems like EHRs is required, your tech partner will ensure compatibility.
Step 2: Outlining security and compliance requirements
Remote patient monitoring software must follow HIPAA and FDA rules. The development team implements audit trails, encryption, secure cloud storage, and APIs for secure communication to ensure data security and privacy. They also define a testing strategy for the pre- and post-production phases.
Step 3: Prototyping and design
To create an intuitive, user-first staff interface, UX/UI teams conduct user research to define user personas and journeys. Based on this research, designers create a prototype reflecting both the initial vision and user needs, gathering feedback on the user experience. The team prioritizes a clean, engaging, and accessible design. Based on feedback, they will refine the prototype and send the final designs to the dev team.
Step 4: Development and integration
Tech experts will use best practices to develop your RPM system iteratively to meet regulatory compliance. This work may include front and backend components, patient and doctor apps, and integration of medical devices.
Step 5: Testing
When it comes to RPM development—thorough software testing is as important as the development itself. After testing, developers should prioritize IoMT device compatibility. They must also ensure smooth integration with the RPM system for the most stability.
Step 6: Ongoing improvements
After deployment, the dev team monitors and tunes the RPM system to meet business and tech needs. They provide training and support for patients and healthcare professionals.
Beyond monitoring and troubleshooting, your tech team will prepare a roadmap for software updates. This will enhance the system's features and security in the future.
RPM Software Deployment: Challenges and Practical Solutions
Let us explore the most notable challenges organizations encounter while deploying their RPM.
Regulatory compliance
RPM's compliance with HIPAA and GDPR relies on strong data security and privacy. It must meet standards like ISO 27001 and IEC 62304 for this.
What to do:
Develop a comprehensive compliance framework according to all requirements like HIPAA, GDPR, FTC (Federal Trade Commission), FDA regulations, and more.
Conduct regular audits and assessments outlining clear policies and protocols for staff.
Provide ongoing staff training to ensure they are aware of their responsibilities.
Data security and privacy
Healthcare organizations handle sensitive patient data (vitals, medical history, personal details, reports, treatment plans). Unauthorized access poses the risk of data breaches and subsequent fines that could total millions of dollars.
What to do:
Use encryption techniques of RPM-collected data, telehealth appointment recordings, and other sensitive patient health data.
Implement strong authentication and role-based access.
Regular audits and security assessments.
Conduct employee and patient training.
Adopt role-based access control (RBAC)
Technology integration and compatibility
Outdated systems may lack compatibility, hindering integration and impacting data accuracy and security. Integrating EHR and clinical systems can also be difficult, affecting data sharing and patient care. Ensuring interoperability for seamless data exchange adds another layer of complexity.
What to do:
Assess current infrastructure compatibility.
Follow interoperability standards and protocols.
Adopt HL7 and FHIR standards.
Cost-benefit analysis
RPM implementation presents a cost-benefit challenge for healthcare organizations. While offering benefits like improved outcomes and enhanced care, the substantial upfront investment in hardware, software, infrastructure, licensing, staff training, regulatory compliance, and data security must be carefully weighed.
What to do:
Conduct thorough cost assessments.
Estimate ROI and potential cost savings.
Strategically allocate resources.
Data precision and accuracy
Inaccurate data transmission from RPM devices (e.g., wearables) poses a significant challenge, potentially leading to misdiagnosis and compromised treatment. Several factors can affect data accuracy, including device calibration, signal interference, network issues, and device quality.
What to do:
Choose quality sensors and wearables.
Regularly calibrate devices.
Implement quality assurance measures.
Lack of patient engagement
Some patients fear switching to modern healthcare and its tech just because they are used to in-person hospital visits. Thus, using the devices, checking vital signs, and messaging the doctor may be hard for the patients.
What to do:
Prioritize a user-friendly interface.
Craft tutorials for device usage and RPM data analytics interpretation.
Incorporate gamification elements (e.g., badges, progress tracking) to incentivize engagement.
Bridge language barriers for diverse patient populations by providing support in multiple languages.
RPM software development cost
The cost of developing Remote Patient Monitoring (RPM) software varies based on complexity, features, and the development team's location. Here’s a breakdown of the estimated costs associated with RPM software development:
Basic RPM application ranges from $50K–$70K.
Standard RPM software ranges from $100K–$400K or higher, depending on the specific requirements and features.
Costs can be $500K or more for advanced solutions with complex systems and integrations.
Both building an in-house tech team and outsourcing software development come with significant costs: salaries/recruitment expenses versus hourly rates and vendor fees. Without proper research, you risk overpaying for a software solution—whether through in-house hiring costs or outsourcing fees—or settling for a product that doesn't meet your requirements.
To calculate the precise budget for your RPM software development idea—please fill out this form. We will contact you shortly.
Best RPM software
Here are some popular remote patient monitoring use cases that might inspire you for your own:
CoachCare
CoachCare was founded over a decade ago, now supports over 3,000 organizations, and serves over 150,000 patients. Boasting a remarkable RPM, it claims a success rate exceeding 95%. It advocates for RPM coverage and collaborates with groups like CMS and AMA. CoachCare's tech lets patients log vital health metrics via an app. Its simplicity boosts engagement. Experts recognize its support of the healthcare industry.
Healee
Healee is a health tech company founded in 2017, now handles over 700,000 visits per month, both onsite and virtual, and supports 5,000 physicians across 200 clinics. With EHR, e-prescription, and billing integrations, the Healee platform streamlines healthcare delivery in wellness, mental health, chronic care, and women's health.
Doctolib
Founded in Paris in 2013, Doctolib is a top healthcare booking platform. It serves over 400,000 providers and 50 million users. It handles 70 million monthly bookings in France, Germany, and Italy. It offers appointment scheduling, telemedicine, and patient messaging. These services reduce missed appointments by 60% and save doctors 1.5 hours per week on administrative tasks.
Senseonics
This company revolutionizes blood glucose monitoring. The system features a sleek, removable transmitter and a sensor expertly implanted under the skin by a healthcare pro. Connected to a mobile app, the sensor offers real-time insights, alerting patients through their smartphones or smartwatches when their glucose levels are too high. Sharing data with healthcare providers and family members becomes a breeze, ensuring optimal treatment strategies.
Currently, around 6,000 users benefit from the Eversense CGM system. By 2025, Senseonics aims to double that number.
Teladoc
Established in 2006, this Hoboken, New Jersey-based powerhouse is revolutionizing healthcare. With an extensive network of licensed professionals, HRS proudly claims the #1 spot in KLAS’ ‘Top Remote Patient Monitoring Companies’ from 2020 to 2023.
HRS offers its innovative PatientConnect platform, featuring over 90 tailored RPM plans for healthcare providers. Beyond monitoring, HRS embraces holistic care, providing behavioral health services like therapy and psychiatry, ensuring a comprehensive touch on every aspect of patient wellbeing.
Improving patient outcomes with RPM software: A case by Darly Solutions
In particular, the health tech company approached us about remote patient monitoring software development. They faced challenges with patient tech literacy, especially among the elderly. There was a risk of data overload for providers. Patient engagement was inconsistent. There was a need for system integration, like with EHRs. Plus, they had to ensure data privacy and security (HIPAA compliance).
Since the deadline was tight and there were a lot of high-precision requirements—we created a detailed plan for the project, assigned UX/UI design, web development, QA, and project management tasks, and pinpointed the tech stack.
Technology stack
We understood that choosing the right technology stack was crucial for success. After thorough consideration, we selected:
Angular: For building dynamic web applications.
HTML/CSS: For structuring and formatting the user’s interface.
Docker: To streamline deployment through containerization.
ngRx: For effective state management.
TailwindCSS: To enable rapid UI development.
NGX Pagination: For efficient handling of large datasets.
JSON: For smooth and efficient data transfer between client and server.
Our efforts paid off. We launched the product on time, meeting all design, functionality, and quality standards. Our client now has a competitive product that is well-placed to thrive in the innovative telemedicine sector.
Rising public interest, health concerns, and tech advances drive the RPM market to new heights in solutions and revenue. As we noted earlier, these technologies enable 24/7 health monitoring. They also provide remote populations with access to quality treatments.
Doctors, nurses, and other healthcare staff should focus less on routine, manual tasks in the next few years. They should focus on saving lives and providing treatment, which RPM can support perfectly. It can greatly reduce burnout and ease stress on global healthcare systems while driving market share to higher results and stakeholder benefits.
This is a great time if you're considering developing your RPM solution.
The first question that you should ask yourself before contacting the IT outsourcing company is “what billing model is the best fit for my project?”. If you are confused about choosing an outsourcing model from the Dedicated team vs. Fixed price vs. Time and Materials for your business idea, then welcome aboard!
In this article, we will compare these business models for your project. Let’s analyze each in detail and describe the advantages and disadvantages of 3 main IT outsourcing models.
Fixed price
The fixed-price agreement is a single-sum contract where the software development team must deliver the project within a predefined sum which is agreed by both parties. A client should be able to share his clear vision of the product with developers to ensure appropriate final results. This model requires the client to provide a detailed list of requirements for the project and all required developer documentation.
Pros of fixed price model:
Clarity. Project requirements are agreed upon before signing the software development contract, as well as all the required developer documentation is specified beforehand.
Accuracy. The project scope and time frames are known and discussed in advance, so the team can set the deadlines, and it is convenient to monitor the project progress.
Autonomy. The development process is coordinated by a project manager, so the client’s participation isn’t necessary.
Cons of fixed price model:
Preparation. The period is needed as all requirements for implementation and deadlines must be documented.
Inflexibility. Any change in the scope of work would cause a change in the total cost of the project and this change would be compensated by the service provider’s end.
Risks. If you don’t provide your requirements correctly, then the delivered product won’t be the same as expected.
Small and medium projects with limited project scope of work.
Time and Materials
Time and materials contract is absolutely different. This model is great suited for long-term projects with changing requirements, where the final requirements are not known in advance and can be changed on the go. This is a flexible approach to IT outsourcing, as the customer pays in smaller chunks for work accomplished during the billable hours. To say more, this pay-as-you-go model allows you to pay only for the work actually done. For example, for features delivered, milestones, etc.
Pros of Time and Materials model:
A flexible approach. The customer can change the scope of work, requirements or add/drop features on the go to meet his business aims without thinking about the budget. This model perfectly combines with modern agile methodologies, for example with Scrum.
Transparency. This model allows the customer to control the cost and concentrate on important elements of the project. The client pays only for the results actually delivered.
Involvement. The client can monitor the process of the development of a certain work schedule in accordance with the expected results.
Cons of Time and Materials model:
Budget and time. It is not always possible to estimate the budget in advance. It’s hard to predict when the product will be delivered or how much it will cost. This depends on the accuracy of the specifications or its changes in the process of work;
Communications. To achieve a high-quality product, continuous communication with the team is necessary. It requires full-fledged involvement from your side, which includes spending much time in communication with the development team.
When is recommended to use Time and Materials model:
Long and middle term projects with dynamic requirements;
Project scope is not fully known;
The customer wants the flexibility to modify the project scope.
Dedicated team
The Dedicated Team model is used to compensate for the lack of in-house IT expertise on mid-to-long-term projects. The billing is based on hourly rates of the developers, and they become a part of a team that is only concerned with the project and not engaged in any other tasks. The developers report directly to the client. However, the client is responsible for team management and control.
As an example, let’s say the client wants to develop software that is not in his team’s expertise, he can hire a developer or team who can do this. In this case, the client can outsource to an experienced team that can help him fulfill his customer’s needs by creating rich quality projects. This will enable the client to maintain stability between your team and the dedicated team.
Pros of Dedicated Team model:
Control. The customer is provided full control and management of the team. Cooperation between the client and the team is very important because it allows for effective planning and evaluating the strengths and weaknesses of the work process.
Development. When a team is focused on one project, it ensures the best results. The team has a full understanding of all project features and is dedicated to running the project smoothly.
Progress. The ability to optimize the product is important for product growth. With the dedicated team, it is much easier.
Reduced costs. The remote team solves many problems with the recruitment and hiring of staff. Plus, you always know the next month’s payments and taxes.
Cons of Dedicated Team model:
Thoroughness. The client must consider process planning and task distribution for every member of the team.
Engagement. You might have to invest more time in communication, discussion and software development.
Graduality. Looking for the perfect candidate takes a lot of time and the client has to be involved in hiring team members.
When is recommended to use Dedicated Team model:
For long-term IT projects with rapidly changing scopes.
Adding more workforce to set up a strong development team.
When you want to access cross-border expertise and knowledge sharing.
Conclusion
To sum up, every project provides the best results when it is managed according to the most suitable IT outsourcing model. Each software product development pricing model has its pros and cons. Choosing the best possible approach fully depends on the specifics of your project and expected results.
According to this, the first step is understanding your business model’s requirements. After determining your project’s needs, you can select the right outsourcing model and start with it.
Over 70% of healthcare providers rely on outsourced IT solutions and specialists to manage their technology infrastructure. As modernization grows more complex—internal teams often struggle to keep up with evolving demands to handle modern IT demands, such as cloud computing, interoperability, and security.
When there's a lack of expertize, deadlines often get pushed back, and tech infrastructure quality drops (business outcomes hinders too).
In short, healthcare's digital shift requires speed and security. That is where healthcare software development outsourcing delivers, whereas internal can't.
Outsourcing brings specialized expertise, cost efficiency, and regulatory compliance (HIPAA, GDPR) while enabling scalable growth. This guide breaks down everything you need to know—what healthcare software outsourcing is, its benefits and drawbacks, how to implement it effectively, and what it costs. Let's dive in.
Healthcare IT Outsourcing Market in 2025: Key Trends and Growth Drivers
Healthcare IT outsourcing has become a cornerstone of the healthcare industry's digital transformation, with the global market projected to grow from $60.6B in 2025 to $117.1 billion by 2035 at a compound annual growth rate (CAGR) of 6.8%. This growth is driven by the increasing demand for cost-efficient, scalable, and innovative IT solutions that address operational challenges, improve patient outcomes, and reduce costs.
Key trends in healthcare IT outsourcing in 2025 are:
Integration & Interoperability
API/IoT integration for EHR interoperability | Secure FHIR-compliant data exchange | Unified "Super Apps" for telehealth/diagnostics.
AI & Custom Solutions
AI/ML diagnostics & HIPAA-compliant apps | Modular MVPs for healthtech startups | Blockchain-secured data analytics.
Cross-Platform Agility
Hybrid apps/PWAs with wearables/IoT sync | Device-agnostic apps with secure data sync | Cloud-EHR integration for telehealth.
Automation
End-to-end workflow automation (appointments, billing) | AI chatbots for triage | Predictive staffing/resource tools.
Analytics & Dashboards
Real-time patient tracking with predictive analytics | Custom KPI dashboards (compliance, efficiency) | Role-based mobile insights/alerts.
North America leads the market regionally due to its advanced health infrastructure and regulatory environment, followed by Europe and Asia-Pacific.
What is IT Outsourcing in Healthcare
Outsourcing healthcare IT means organizations hire external firms to manage their IT needs. This allows providers to focus on patient care while specialists handle EHR management, network support, software development, cybersecurity, and billing tasks. The approach cuts costs, delivers expert skills, scales with demand, and ultimately improves patient outcomes.
How Does Healthcare IT Outsourcing Work?
Healthcare IT outsourcing starts with identifying which functions need external support, such as custom-built healthcare hardware integrations, EHR management, cybersecurity, or medical billing automation, integration with cloud-based health records and data analytics platforms, custom hardware solutions for telehealth and remote monitoring. Providers then choose a partner based on expertise, security standards, and regulatory compliance. A contract outlines services, security protocols, and performance expectations.
Next comes implementation, where the outsourcing team handles data migration, system integration, and staff training with minimal disruption. Once in place, they provide ongoing support, security monitoring, and compliance audits.
As healthcare organizations grow, outsourced IT services scale with them, expanding telehealth, strengthening security, and optimizing operations. The result? Lower costs, greater efficiency, and more focus on patient care.
Why Do Healthcare Providers Need IT Outsourcing
It is pretty time-consuming for healthcare service providers to go deep into healthcare information technology. Hiring in-house IT experts for long-term projects can be difficult and frustrating. Here's why:
Reduced Time-To-Market.
In healthcare, the rapid deployment of new technologies can significantly impact patient care. Outsourcing to specialized IT providers allows for faster implementation of telehealth platforms, patient portals, and electronic health record (EHR) systems. This speed is crucial in a rapidly evolving healthcare landscape.
This also means that new regulatory changes that require IT implementation can be implemented much faster, keeping the healthcare providers in compliance.
No Tech Skills Required.
Healthcare professionals are experts in patient care, not necessarily in IT. Outsourcing eliminates the need for extensive in-house IT expertise. This allows medical staff to focus on their core competencies while relying on external experts to manage complex IT systems.
Also, this is a great solution for the shortage of qualified IT professionals.
HIPAA Compliant End Product.
Security and privacy must come first in healthcare. IT outsourcing providers specializing in healthcare are well-versed in HIPAA regulations and can ensure that all IT solutions meet stringent compliance standards. This reduces the risk of costly data breaches and legal penalties.
This also reduces the burden of in-house IT staff to keep up with the ever-changing HIPPA regulations.
Lower Development Budget.
Maintaining an in-house IT department can be expensive. Outsourcing allows healthcare providers to access specialized IT services without the overhead costs of salaries, benefits, and equipment. This can significantly reduce operational expenses, freeing resources for other critical areas.
In essence, outsourcing allows for predictable IT costs.
Shorter Recruitment Process.
Hiring and retaining qualified IT professionals can be challenging, especially in the competitive healthcare market. Outsourcing eliminates the need for lengthy recruitment processes, allowing healthcare providers to access the IT expertise they need quickly. Plus, avoiding additional full-time hires can save $100K+ per senior developer per year, while reducing reliance on in-house hiring lowers operational costs by 28%.
Key Healthcare IT Functions You Can Outsource
With rising IT demands, healthcare providers offload tech-heavy tasks to external partners. Outsourcing medical mobile app development, billing software, integration of third-party healthcare services and APIs—ensures agility, compliance, and operational efficiency. Thus, healthcare representatives could focus on what matters most—patient care. Let’s talk in detail about these services:
Medical Billing and Coding Software
Managing medical billing in-house is complex and error-prone. Outsourcing to specialized vendors improves accuracy and accelerates claims processing. This helps reduce billing errors and ensures timely reimbursement. Some companies offer cloud-based medical billing services that automate billing procedures and enhance revenue cycle management.
Telemedicine and Remote Patient Monitoring Solutions
Patients expect remote consultations, digital check-ins, and real-time health monitoring. Developing these solutions in-house is challenging, so many healthcare providers outsource telemedicine and remote monitoring. This expands care access, improves chronic disease management, and ensures HIPAA-compliant, user-friendly platforms.
IT Infrastructure Management
Healthcare providers depend on reliable IT infrastructure for operations, data storage, and security. Outsourcing simplifies maintenance, cuts costs, and ensures scalability as organizations grow. By delegating IT tasks, providers can prioritize patient care without technical concerns.
Benefits of Outsourcing in Healthcare
There's no doubt that outsourcing is reshaping healthcare. It optimizes workflows, lowers costs, and improves care quality from hospitals to labs. Here’s a detailed outlook on how each sector gains:
Benefits of Medical Centers and Hospital IT Outsourcing
From IT services to administrative tasks, outsourcing allows hospitals to focus on patient care while reducing expenses. Read on for details on the benefits of this type of outsourcing:
Cost Optimization and Resource Management
Reduction in operational expenses through outsourced administrative tasks.
More efficient allocation of medical staff to core patient care activities.
Lower infrastructure and technology investment costs.
Enhanced Focus on Patient Care
Medical professionals can dedicate more time to patient interaction and treatment.
Improved patient satisfaction through faster service delivery.
Better management of patient records and documentation.
Access to Specialized Expertise
Ability to tap into specialized medical professionals without full-time hiring.
Access to the latest medical technologies without significant capital investment.
Specialized training and development programs for staff.
Benefits of Outsourcing for Healthtech Startups
Scaling a health tech startup with tight budgets, evolving regulations, and rapid tech advancements is challenging. Outsourcing offers a cost-effective way to access expertise, accelerate growth, and stay competitive. Here’s how it makes a difference.
Rapid Scaling Capabilities
Faster market entry through ready-to-deploy solutions.
Ability to scale operations up or down based on market demand.
Reduced time-to-market for new healthcare solutions.
Technology Implementation
Access to experienced development teams for healthcare applications.
Integration of emerging technologies like AI and IoT.
Compliance with healthcare regulations and standards.
Cost-Effective Innovation
Reduced R&D expenses through shared resources.
Access to global talent pools for specialized development.
Lower operational costs during the crucial growth phase.
Benefits of Outsourcing for Veterinary Clinics
From appointment scheduling to IT management, veterinary clinics can benefit greatly from outsourcing. It reduces workload, improves efficiency, and allows vets to dedicate more time to their patients. Here are details on the benefits:
Operational Efficiency
Streamlined appointment scheduling and patient management.
Automated billing and insurance processing.
Efficient inventory management for medical supplies.
Extended Service Capabilities
24/7 emergency support through outsourced services.
Access to specialized veterinary consultants.
Enhanced diagnostic capabilities through remote services.
Business Growth Support
Marketing and client relationship management.
Financial planning and analysis.
Staff training and development programs.
Benefits of Outsourcing for Pharmaceutical Companies
With rising production costs and complex regulatory requirements, pharmaceutical companies are turning to outsourcing for efficiency, compliance, and faster innovation. More benefits are listed below:
Research and Development
Access to specialized research facilities and equipment
Collaboration with global research teams
Faster clinical trial processes and data management
Manufacturing and Quality Control
Cost-effective production through contract manufacturing.
Stringent quality control processes.
Flexible production capacity management.
Market Access and Distribution
Global distribution network access.
Local market expertise in different regions.
Regulatory compliance management.
Benefits of Outsourcing for Medical Device Manufacturers
From prototyping to full-scale production, outsourcing enables medical device manufacturers to access specialized expertise, reduce operational costs, and focus on core innovations. Here’s how it drives efficiency and growth.
Design and Engineering
Access to specialized product design expertise.
Rapid prototyping capabilities.
Cost-effective research and development.
Production Optimization
Flexible manufacturing capabilities.
Quality assurance and compliance.
Supply chain management.
Benefits of Outsourcing for Medical Laboratories
From sample processing to data security, outsourcing allows medical laboratories to streamline operations, reduce expenses, and enhance service quality. Here’s why it’s a strategic move.
Testing Capabilities
Expanded test menu through partnerships.
Advanced equipment access without capital investment.
Specialized testing expertise.
Data Management
Efficient lab information systems.
Secure patient data handling.
Integration with healthcare providers.
Benefits of Outsourcing for Healthcare Insurance Providers
Managing healthcare insurance operations requires speed, accuracy, and compliance. Outsourcing allows providers to reduce overhead, scale operations, and enhance customer satisfaction. Here’s how it benefits the industry.
Claims Processing
Faster claims adjudication.
Reduced processing costs.
Better fraud detection.
Customer Service
24/7 support availability.
Multi-language capabilities.
Improved response times.
How to Find Out If You Need Healthcare IT Outsourcing
While the benefits of healthcare IT outsourcing are endless, what are the signs that healthcare organizations need to switch to this model? Here are the key indicators:
ROI is the name of the game. More hospitals turn to outsourcing to lower expenses, with nearly 90% of healthcare companies reporting positive returns in just three months or less.
Immediate access to skilled teams and technology. Technology is advancing fast, making it hard for hospitals to find and keep IT staff, especially in rural areas. Many turn to third-party providers for hosting, network management, help desk support, application support, and IT outsourcing. These services can be done on-site, remotely, or both.
Cyber security threads. Many organizations outsource security because in-house teams can’t keep up with evolving threats. Additionally, new security technologies are expensive, while outsourcing spreads costs across multiple clients.
The gap in strategic IT leadership. As technology reshapes healthcare, strong IT leadership is more critical than ever. Once a back-end support role, IT now drives hospital strategy, yet many facilities—especially in smaller communities—struggle to fill C-suite positions. Leading outsourcing firms bridge this gap, providing experienced IT executives who align technology with hospital goals.
Let the hospital IT staff focus on key tasks. IT outsourcing shifts hospital IT teams from routine maintenance to high-impact projects, allowing leadership to focus on core healthcare priorities.
Organizational crisis. When IT issues put patient care at risk, hospitals must act fast, often relying on third-party experts. When it happens, you won’t have to guess.
What Is the Best Healthcare Outsourcing Model for Your Business
There’s no one-size-fits-all answer; the best healthcare outsourcing model depends on your organization’s priorities.
Full Outsourcing
Full outsourcing transfers entire non-core functions to an external provider. You let the vendor handle day-to-day operations while focusing on your core business. This model is ideal for organizations seeking major cost savings and streamlined operations.
Benefits:
Comprehensive service management
Significant cost reduction
Single-point accountability
Best for: Complete departments such as IT, billing, or HR that can operate independently.
Selective Outsourcing
Selective outsourcing lets you outsource specific tasks while keeping essential functions in-house. You benefit from specialized skills without giving up full control over key processes. This model works well for companies looking to optimize certain operations without overhauling their entire structure.
Benefits:
Focused expertise for targeted tasks
Retained control over critical processes
Flexibility in managing workload
Best for: Non-core tasks like data processing, administrative work, or technical support.
Hybrid Outsourcing
Combines onshore and offshore services to balance cost, quality, and flexibility. You maintain local oversight for crucial functions while outsourcing routine tasks to cost-effective teams abroad. This model offers the best of both worlds: quality control and cost efficiency. Benefits:
Balanced cost savings and quality
Flexible resource allocation
Access to global talent pools
Best for: Organizations that need both local management and international cost advantages.
RPO (Recruitment Process Outsourcing)
Use specialized agencies for staffing needs, streamlining the hiring process. You streamline hiring and gain access to a broader talent pool while reducing the administrative burden on your HR team. This model is especially beneficial for organizations looking to fill specialized roles fast. Benefits:
Faster, more efficient hiring
Access to expert recruitment strategies
Reduced HR workload
Best for: Rapid staffing needs, especially for specialized healthcare roles.
By assessing your business goals, budget, and desired level of control, you can choose the model that best fits your needs.
Common Challenges in Healthcare IT Outsourcing and Strategies to Overcome Them
Healthcare IT outsourcing benefits abound, yet risks loom. Data security, communication gaps, and control loss threaten progress. HHM Global details these pitfalls and offers actionable solutions. Smart outsourcing means mitigating risk, not ignoring it.
Data Security and Privacy Concerns
Healthcare IT systems store sensitive patient data that must comply with strict regulations (e.g., HIPAA). Outsourcing increases the risk of data breaches or unauthorized access if security measures are not robust.
Solutions:
Implement end-to-end encryption and secure VPNs.
Enforce rigorous vendor compliance and conduct regular security audits.
Adhere to healthcare-specific compliance standards, such as SOC 2, HIPAA, or ISO 27001.
Use multi-factor authentication and strict access controls.
Ensure the vendor adheres to industry standards for data protection.
Pro Tip: Cybersecurity must be a core part of the contract. Specify required security measures, audits, and breach response plans.
Loss of Control Over IT Processes
Outsourcing IT functions may reduce an organization’s direct oversight over critical processes, potentially leading to slower response times for issue resolution or misalignment with internal standards.
Solutions:
Define comprehensive Service Level Agreements (SLAs) with measurable performance metrics.
Set up remote monitoring and regular performance reviews.
Establish clear governance structures and escalation procedures.
Integration and Compatibility Challenges
Integrating diverse healthcare IT systems can lead to data inconsistencies and operational disruptions, hindering seamless workflows and patient care.
Solutions:
Conduct thorough compatibility assessments before implementation to identify potential conflicts.
Utilize middleware or Application Programming Interfaces (APIs) to bridge gaps between disparate systems.
Establish transparent data migration and integration protocols, ensuring data integrity during transitions.
Standardize data formats across systems to facilitate seamless data exchange.
Perform comprehensive testing of all integrations in a simulated environment before going live.
Develop a well-documented integration plan and have a rollback strategy.
Unexpected Costs
One of the reasons organizations turn to outsourcing is to save on costs. However, unexpected expenses can arise if the scope of work isn’t clearly defined. You can also face this challenge if there are hidden fees for additional services like after-hours support or data migrations.
Solutions:
Conduct a detailed cost analysis, including potential hidden fees and variable expenses.
Establish clear and comprehensive contracts with fixed pricing or well-defined variable costs.
Implement regular budget reviews and track expenses against projected costs.
Include contingency clauses in the contract to address unexpected expenses.
Request detailed breakdowns of all costs, and avoid vague pricing structures.
Develop a strong change management process to control scope creep.
Pro Tip: Always plan for the unexpected by setting aside a contingency budget for unforeseen costs, such as additional security measures or system upgrades that might become necessary during the project.
Solutions:
Establish clear and consistent communication channels, including regular meetings, email updates, and project management tools.
Define specific roles and responsibilities for both internal and external teams.
Implement a centralized communication platform for seamless information sharing.
Conduct regular training sessions to improve communication skills and cultural awareness.
Establish a clear escalation process for addressing communication issues.
Foster a collaborative environment through team-building activities and shared goals.
How to Outsource Healthcare Software Development
Healthcare IT outsourcing is a one-stop solution for organizations that want to cut costs and drive operational efficiency through the latest tech trends. Scorching numbers here: Business operations that outsource their non-core tasks reduce costs by up to 30%.
The development process kicks off once you choose a healthcare IT vendor that aligns with your needs and budget. First, you establish contract, your request is sent to the Business Development Department. Within 24 hours, a manager with healthcare knowledge will reach out to discuss the next steps. If necessary, an NDA can be signed to ensure confidentiality.
In the next phase, the team clearly views the project's goals, scope, and main issues. To refine the plan and go over quality attributes, the outsourced healthcare team sets up a meeting with a solution architect, business analyst, and designer.If there are uncertainties, the team can arrange additional meetings.
Once everything is clear, the team provides a rough estimate and timeline. Next is the discovery phase. This phase outlines the software's visual concept and key features, identifies potential risks, and sets the business strategy. Finally, it refines timelines and cost estimates.
Development and quality assurance are the most intensive stages. The software architecture often starts with a Minimum Viable Product (MVP), which helps validate the idea and collect user feedback. At this stage, development happens in sprints, with each cycle defining specific tasks and objectives. A PM oversees whether the process runs smoothly and tracks any changes or extra requirements that arise. QA engineers test the software carefully. They find and report issues, which developers then fix quickly.
Once development is complete, the software is launched in a healthcare system or a specific marketplace, like Google Play or the App Store. QA remains involved during this phase to verify performance and address last-minute issues. The final stage is ongoing support and maintenance. Even after release, the team continues to monitor the software to ensure functionality, compliance, and competitiveness.
Some updates may include code optimization, integration of modern technologies, and bug fixes to enhance user experience and system performance. This structured approach streamlines and efficiently develops healthcare software.
Want to streamline healthcare IT operations? Darly Solutions is a trusted partner that understands your industry's challenges. Contact us to discover customized solutions that keep your IT systems efficient and secure.
Darly Solutions' Experience in Healthcare IT Outsourcing
At Darly Solutions, we have all the necessary expertise and hands-on experience in creating modern healthcare solutions:
Service Portfolio:
Custom software development
App Development
Cross-platform development
Automation services
UI/UX Design
Integration services
If you need an expert IT team based on managed IT or project augmentation services to partner with you, contact Darly Solutions today to outsource your software development to us!
Wrapping Up
Healthcare organizations are increasingly outsourcing IT functions to reduce costs and enhance efficiency. For instance, hospitals can save substantially by outsourcing electronic medical records systems, freeing up resources for patient care. This trend is further supported by the ability to access specialized cybersecurity and regulatory compliance expertise. Maximize healthcare efficiency with professional IT outsourcing—no time for mediocrity!
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