Below is our recent interview with Paddy Padmanabhan, CEO of Damo Consulting:
Q: Could you provide our readers with a brief introduction to Damo Consulting?
A: Damo Consulting is a growth strategy and digital transformation advisory firm that works with healthcare enterprises and global technology companies. We help develop and implement digital transformation strategies and enable market growth strategies. We specialize in thought leadership led brand transformation and actionable healthcare market intelligence.
Q: Can you give us insights into your services?
A: • Digital transformation: We help healthcare enterprises with their digital transformation strategy, develop and execute digital roadmaps.
• Growth strategy and enablement: We help global technology firms and digital health companies develop and execute healthcare market growth strategies.
• We use our DamoIntelTM platform to research and evaluate the digital health ecosystem, the competitive landscape for technology solutions, and benchmark digital health best practices.
• DamoDigitalTM brand transformation: We leverage our deep industry knowledge, research and thought leadership to help technology firms and healthcare enterprises with their branding and positioning strategies.
Q: What are the biggest trends to watch in healthcare IT?
A: • The rise of non-traditional players such as Amazon and Google will have a strong impact on the competitive environment among technology vendors.
• EHR systems, despite the many shortcomings, will be the primary choice for digital initiatives among health systems for now. They will dominate technology spending budgets, even as the focus turns to digital and analytics.
• The top spending priorities for healthcare executives are digital, advanced analytics and AI. However, they are cautious with their spend in healthcare IT as they struggle to make sense of the changing landscape of who is playing what role and the blurred lines of capabilities and competition.
Q: You’ve recently released 2018 annual “WITCH Report” on healthcare technology consulting firms. Could you tell us something more?
A: The WITCH report is a one-of-kind reference document which we have published since 2015. The report provides a summary of the financial and market performance of 11 major global technology consulting firms (including Wipro, Infosys, TCS, Cognizant, and HCL), specifically in the healthcare and life sciences (HLS) segment. The report focuses on four aspects of company performance: financials, customer win announcements, M & A and strategic initiatives, and leadership updates. The report is based on a wide range of public information sources as well as detailed company briefings. Our company leadership has over 20 years of experience in this sector, and we have tracked the leading firms in our report since 2015. We publish a semi-annual and an annual review of the financial and market performance of the firms we cover in the report.
Q: Can you share some highlights from your report?
A: • Cognizant remains the dominant player in healthcare among its peer group. However, its growth rate has slowed in the past few quarters. Inorganic growth from acquisitions during the year has helped maintain overall growth rates for the year.
• HCL has shown the highest growth in HLS business among its peers, with an impressive 18.56% growth rate for the year. HCL’s HLS business has consistently outgrown the rest of the company.
• Wipro’s growth continues to be impacted by the HPS acquisition. However, its performance in the last quarter suggests a turnaround, led by growth in the rest of the HLS business.
• Infosys’ growth has been flat for the Insurance SBU (which includes HLS) in the past three quarters. Among its peer group, Infosys is the only company where HLS is not a stand-alone SBU. The HLS business could see upsides in 2019 from a couple of significant wins announced during the year.
• TCS’ HLS business has seen steady low-to-mid single digit growth during the year, supported mainly by organic growth from the life sciences business.
Q: Can we expect a significant growth in healthcare IT spending next year? Why?
A: Digital transformation is gaining momentum in healthcare enterprises. This will impact healthcare IT spend of healthcare enterprises. According to our 2019 healthcare IT demand survey results, around 80% of respondents indicated there would be greater than 20% increase in healthcare IT spending in 2019. We expect healthcare information technology solutions, especially digital health solutions, to mature and gain adoption in healthcare enterprises. Healthcare enterprises are expected to continue to invest in digital transformation initiatives, and we anticipate this will further impact spending in healthcare IT.
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Q: What can we expect from Damo Consulting in the future?
A: Being a boutique advisory and management consulting firm, we will continue to remain exclusively focused on healthcare. We are building on our deep domain expertise and research base, especially in the provider segment, where our work in digital transformation strategy with some of the leading health systems in the U.S is providing us unmatched insights into the challenges and priorities in that segment. We are continuing to leverage our insights to help leading data and technology solutions providers in healthcare with their market growth strategies. To support our client engagements, we have invested in in-house capabilities to deliver quality market intelligence and thought leadership content. In 2019, we plan to focus on successfully completing our ongoing engagements and set new benchmarks in developing and executing digital transformation and market growth strategies for health systems and their strategic technology partners.