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Myths about outsourcing to application service providers

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3 Author(s)
Susarla, A. ; Dept. of Manage. Sci. & Inf. Syst., Texas Univ., Austin, TX, USA ; Barua, A. ; Whinston, A.B.

Which applications are organizations outsourcing to ASPs? What did they hope to gain? And what are the critical success factors for organizations using ASPs? To assess these issues we cosponsored a study to assess organizational attitudes and adoption metrics for ASPs. Our survey garnered 256 usable responses from businesses regarding their use of ASPs. The study indicated that a significant number of respondents believed ASPs offer a fast-track way of implementing IT projects. However, 80 percent also favored internal implementation for core IT projects, which suggests that other factors still present a substantial barrier to ASP adoption. Nevertheless, companies are outsourcing some core applications - such as supply chain management and e-commerce - and several non-core applications. This outsourcing implies that companies perceive a significant benefit to ASP adoption. The message for users is unambiguous: to succeed, understand how Internet outsourcing works for your company, benchmark against successful ASP adopters, and establish a common criterion for evaluating an ASP

Published in:

IT Professional  (Volume:3 ,  Issue: 3 )