India based information technology company Tech Mahindra Ltd. will be setting up a new division to improve its focus on gaining more contracts in the health care industry, which has been identified as one of the most rapidly developing sectors for providers of outsourcing services, said a senior executive on Wednesday.
The division will be called nth dimension and has already bagged an IT services project amounting to US$ 78.52 million from CircleHealth, a health care company based in Britain. Rajib Bhattacharya, vice president of Tech Mahindra will be leading the new subsidiary nth dimension.
Rajib told Reuters on Wednesday that with this new division Tech Mahindra will be able to leverage global opportunities in just a few years’ time. The company, he added, was extremely excited about the partnership with CircleHealth. He said that over the coming few years, the new division will hope to create a new technology model that will emphasize on both the patient and the health care worker.
Competitors such as Infosys Ltd and Cognizant Technology Solutions Corp have also increased their focus on to the health care industry hoping that the implementation of the Affordable Care Act in the United States will help fuel their outsourcing opportunities.
In September last year, TriZetto Corp – a health care IT service provider – was bought for US$ 2.7 billion by Cognizant.
Rajib Bhattacharya confirmed that the company was actively on the look out for deals in the United States as well.
As part of the new deal, Tech Mahindra will be developing technologies aimed at operational delivery and patient care, thereby reducing costs for Britain based CircleHealth. At present, Tech Mahindra receives approximately 10 per cent of its sales from health care clients.
Steve Melton is the present chief executive officer at CircleHealth, which runs private hospitals as well as services for the National Healthcare Service in the United Kingdom.