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Making the most out of an ASP relationship

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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.

Our research indicates that to ensure mutual success, companies and ASPs will need to explore sophisticated methods of pricing ASP contracts rather than using a simple fixed-price monthly rental form. Also, companies must understand the legal implications of outsourcing to an ASP and realize the necessity of specific contractual clauses. We expect that as companies outsourcing complex products to an ASP come to understand the importance of incorporating an ASP into their strategic IT needs, contracts will provide for profit sharing and other arrangements.)

Published in:

IT Professional  (Volume:3 ,  Issue: 6 )