In order to fuel growth in MPO sector, the Assocham-EY study suggested the government to "focus on implementing data privacy laws, introducing proper regulations around intellectual property and patent laws, and give a boost to education to help bridge the skill gap".
Although, Indian regulatory environment has been constantly evolving, the challenges around privacy laws, intellectual property laws and changing clinical trial laws continue to exist, it said.
"A favorable and stable regulatory environment coupled with increased transparency is critical for growth in this sector," it added.
Indian BPO industry stands to gain from the growing demand in healthcare outsourcing.
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An evolved medical education system and its established prowess as a hub for outsourcing give India an inherent advantage, it said.
The study further said India has emerged as the second largest destination after the US in the healthcare outsourcing space.
Rising demand for high-end healthcare facilities and multi-specialty hospitals, established medical and central lab infrastructure and training centers is contributing to the growth of healthcare and life sciences industry thereby fuelling the domestic demand for medical process outsourcing, it added.