Spiralling healthcare costs and the increasing complexity of health care IT systems are compelling hospitals to selectively source their IT needs. This, together with heightened public sector interest in IT modernisation initiatives across Europe, is creating tremendous opportunities for health care IT vendors and managed service providers.

Frost & Sullivan (http://www.healthcare.frost.com) finds that the European Health Care IT Market earned revenues of $383.4 million in 2005, with services accounting for approximately 30.0 per cent of the overall market. This market is estimated to reach $634.3 million in 2010, with the contribution of services likely to increase further.

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