PITON secures US$2.5M medical transcription outsourcing contract

Philippine IT Offshore Network (PITON) announces US$2.5 million medical transcription outsourcing agreement with US HMO. PITON matches outsourcers with service providers principally in the Philippines.

Manila, Philippines (PRWEB) December 28 2003--Philippine IT Offshore Network (PITON), a consulting firm specializing in offshore IT outsourcing and business process outsourcing (BPO) reported securing the country's single largest healthcare outsourcing contract valued at US$2.5M. The project entails providing the medical transcription (MT) requirements of Health Partners, the third largest health maintenance organization (HMO) in Minnesota, USA.

An HMO is an organization which provides comprehensive healthcare coverage to its members through a network of doctors, hospitals and other healthcare providers.

PITON announced a month ago its strategic partnership with a prestigious and well-respected US healthcare consultancy called Midwest that aims to establish in the US Midwest the competitive advantages of outsourcing data transcription requirements to Philippine vendors. Securing the contract of Health Partners is the first outgrowth of their collaborative efforts.

With a rollout phase of 100,000 lines per day, the project will be ramped up to 250,000 to 350,000 lines within the next 12 months. "This demand is actually twice the current output of all MT service providers in the country combined," said PITON CEO Ralf Ellspermann, "and presents a significant win not only for PITON and Midwest, but for the industry as a whole as it will fuel growth and generate over 500 local jobs.

"In order to meet this demand, PITON is in the process of expanding its vendor network and projects that within a couple of months it will be able to provide 100,000 lines of transcription per day, and by the middle of the next year, 250,000 to 300,000."

To date, there are 17 MT service providers in the country, as against about 34 contact centers. "There is no reason why both sectors cannot grow at the same rate when the country harbors so many qualified professionals for both jobs," Ellspermann noted.

Ellspermann mentioned PITON and Midwest had several other deals in the pipeline and expressed optimism that the Philippines can capture a bigger share of the global BPO pie. "The Philippines possesses the closest cultural affinity to the US, the world's largest and most important market for offshore MT services currently valued at US$25 billion. The English language proficiency found in the country is another factor that clearly sets the Philippines apart from other offshore outsourcing destinations, including India. It's just a matter of intensifying our marketing and networking efforts," Ellspermann said.

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