The Hindu Business Line : Cisco bullish on healthcare

Cisco Systems, the $24.8-billion networking technology provider, is bullish on the Indian healthcare market. It is in the process of partnering with various players to reach out its technologies.

The company believes that the healthcare industry will rapidly take to new technologies, not just to remain competitive but also be part of the global integration process.

The Country Manager and Senior Vice-President, Cisco Systems, Mr Jangoo Dalal, said: "the Indian healthcare industry is witness to phenomenal expansion driven by investments in private hospitals and public health programmes. Given the current growth patterns, we expect the industry to take to new technologies to both streamline their work processes and bring in cost advantages."

Fragmented sector

On a visit to Hyderabad, Mr Dalal told Business Line that the healthcare industry is extremely fragmented, and currently accounts for about 6.1 per cent of the gross domestic product. This is projected to grow to about 8.5 per cent by 2012. Typically, healthcare industry players spend about five per cent of their overall revenues on technology.

According to industry estimates made by consultants such as McKinsey, the spend is expected to increase from Rs 86,000 crore at present to Rs 2,00,000 crore. With the new trend of medical tourism, this could potentially contribute to about Rs 10,000 crore in additional revenues.

Overall plans

Referring to overall Cisco plans in India, Mr Dalal said, "We are on course to the committed $1-billion investment in India across the company's operations of R&D and venture capital investment. We are also in the advanced stage of finalising plans for a manufacturing base."

More Stories on : Medical Institutions & Hospitals | Outlook | Software

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