IDEAS home Printed from https://ideas.repec.org/a/spr/infosf/v2y2000i2d10.1023_a1026552208171.html
   My bibliography  Save this article

Application Service Providers: Will They Succeed?

Author

Listed:
  • Chris Bennett

    (SAP Australia Pty. Ltd., Northside Gardens)

  • Greg T Timbrell

    (Queensland University of Technology)

Abstract

This article examines the likelihood of success for application service providers (ASP) drawing from the outsourcing literature, interviews with ASPs in the USA, and the experience of Bennett who has held leadership roles in ASP and ERP in South East Asia. This article proposes that application service providers (ASP) rent packaged software, predominantly over the Internet. It shows why organizations might employ the ASP model to manage their enterprise resource planning systems. Using a framework adapted from Lacity and Hirschheim, it demonstrates that the financial, business, technical and political reasons why organizations evaluate outsourcing can be applied to ASP model. While ASPs generally target the mid-market, large enterprises are also using ASPs to introduce new ERP modules. Potential users of ASP should regard the risks of outsourcing prior to entering into business arrangements. This examination concludes that there are strong financial and technical reasons for adopting the ASP model and therefore it has potential to succeed.

Suggested Citation

  • Chris Bennett & Greg T Timbrell, 2000. "Application Service Providers: Will They Succeed?," Information Systems Frontiers, Springer, vol. 2(2), pages 195-211, August.
  • Handle: RePEc:spr:infosf:v:2:y:2000:i:2:d:10.1023_a:1026552208171
    DOI: 10.1023/A:1026552208171
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1023/A:1026552208171
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1023/A:1026552208171?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Benoit Aubert & Michel Patry & Suzanne Rivard, 1998. "Assessing the Risk of IT Outsourcing," CIRANO Working Papers 98s-16, CIRANO.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Goode, Sigi & Lin, Chinho & Fernandez, Walter & Jiang, James J., 2014. "Exploring two explanations of loyalty in application service provision," European Journal of Operational Research, Elsevier, vol. 237(2), pages 649-657.
    2. Mark A. Serva & Susan A. Sherer & Janice C. Sipior, 2003. "“When Do You ASP?” The Software Life Cycle Control Model," Information Systems Frontiers, Springer, vol. 5(2), pages 219-232, April.
    3. Vincent Cho & Aman Chan, 2015. "An integrative framework of comparing SaaS adoption for core and non-core business operations: An empirical study on Hong Kong industries," Information Systems Frontiers, Springer, vol. 17(3), pages 629-644, June.
    4. Manish Agarwal & R. Kishore & H.R. Rao & S. Upadhyaya, 2001. "Towards a Testbed for Modelling Application Service Provider (ASP)," Vision, , vol. 5(1), pages 13-23, January.
    5. Sun-Pyo Lee & Kyungji Kim & Sungbum Park, 2023. "Investigating the Market Success of Software-as-a-Service Providers: the Multivariate Latent Growth Curve Model Approach," Information Systems Frontiers, Springer, vol. 25(2), pages 639-658, April.
    6. Lin, Sheng-Wei, 2016. "The critical success factors for a travel application service provider evaluation and selection by travel intermediaries," Tourism Management, Elsevier, vol. 56(C), pages 126-141.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julia Trampel, 2004. "To Offshore or Nearshore IT services? An investigation using transaction cost theory," Industrial Organization 0406001, University Library of Munich, Germany.
    2. Kim Wüllenweber & Daniel Beimborn & Tim Weitzel & Wolfgang König, 2008. "The impact of process standardization on business process outsourcing success," Information Systems Frontiers, Springer, vol. 10(2), pages 211-224, April.
    3. Benoit Aubert & Vital Roy, 2000. "A Resource-Based Analysis of IT Oursourcing," CIRANO Working Papers 2000s-30, CIRANO.
    4. Nils Urbach & Tobias Würz, 2012. "How to Steer the IT Outsourcing Provider," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(5), pages 247-259, October.
    5. Benoit Aubert & Michel Patry & Suzanne Rivard & Heather Smith, 2000. "IT Outsourcing Risk Management at British Petroleum," CIRANO Working Papers 2000s-31, CIRANO.
    6. Benoit Aubert & Vital Roy, 1999. "A Resource Based View of the Information Systems Sourcing Mode," CIRANO Working Papers 99s-34, CIRANO.
    7. Benoit Aubert & Sylvie Dussault & Michel Patry & Suzanne Rivard, 1998. "Managing the Risk of IT Outsourcing," CIRANO Working Papers 98s-18, CIRANO.
    8. Benoit Aubert & Michel Patry & Suzanne Rivard, 2001. "Managing IT Outsourcing Risk: Lessons Learned," CIRANO Working Papers 2001s-39, CIRANO.
    9. Asatiani, Aleksandre & Apte, Uday & Penttinen, Esko & Rönkkö, Mikko & Saarinen, Timo, 2019. "Impact of accounting process characteristics on accounting outsourcing - Comparison of users and non-users of cloud-based accounting information systems," International Journal of Accounting Information Systems, Elsevier, vol. 34(C), pages 1-1.
    10. Beasley, Mark & Bradford, Marianne & Dehning, Bruce, 2009. "The value impact of strategic intent on firms engaged in information systems outsourcing," International Journal of Accounting Information Systems, Elsevier, vol. 10(2), pages 79-96.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:infosf:v:2:y:2000:i:2:d:10.1023_a:1026552208171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.