JEDDAH – Saudi Arabia’s IT services market has been projected to grow at a compound annual growth rate (CAGR) of 9 percent from 2011 to 2015. With a forecast value of around $1.1 billion in 2011, the Kingdom’s IT services market is expected to generate new revenue streams from the Kingdom’s e-health sector in line with aggressive government and private sector expenditure on the latest medical technologies to satisfy the expanding healthcare needs of the country’s growing population.
Agaisnt this backdrop, CGM Tepe International, a leading provider of scalable health information technology products and solutions for healthcare companies on a workflow-based platform, has announced that it is in the process of merging with another Turkish subsidiary of CGM (CompuGroup Medical) called CGM Türkiye, which provides Health Payer Services and Information Systems (HPSIS division) and is one of the leading TPAs (third party administrators) serving private health insurance companies and other health payers like bank funds. The newly formed company named CompuGroup Medical (CGM) is emerging as the most powerful healthcare IT solution provider in Turkey and the Middle East region. The move follows the global "unique brand philosophy" of CGM, which has a clear focus on the most relevant local market subsegments in healthcare, building on a strong international brand and the vision of being the most successful eHealth company in the world.
CGM Tepe International’s aim is to offer a broader and more comprehensive range of products to meet business needs of all the stakeholders in the health sector, such as insurance companies and other healthpayers which can benefit from the HPSIS (health payer services information systems) product portfolio. This will provide a wider range of e-health services that match the specific needs of healthcare companies in the Kingdom. The new company CGM will extend the initial long-term growth plans in KSA and is expected to further increase its share in the Saudi healthcare market.
Mehmet Bilginsoy, CEO, CGM Tepe International, said: "This merger will enhance our ability to cater to the growing demand for more advanced and comprehensive healthcare facilities and technologies in the Kingdom. CGM is set to combine both companies’ resources and distribution network to create a more convenient gateway for healthcare companies to access e-health technologies and services, and enable them achieve low Total Cost of Ownership. Moreover, this strategic partnership will support the ongoing modernization of KSA’s healthcare sector and ultimately help citizens and residents enjoy premium-quality and cost-effective healthcare services." – SG