The phenomenal growth of the Internet has persuaded many companies of its potential as a channel for outsourcing information systems applications. Application service providers (ASP) are firms that offer outsourcing application services to many organizations via the Internet. By contracting ASP, organizations are having information technology (IT) staff focusing their efforts on core competencies while, at the same time, capitalizing on the expertise of outsourcer. On the other hand, many ASP turn some of their projects to global outsourcer. The study develops a framework that identifies the critical factors influencing ASP' decision to outsource globally. These factors are product development costs, IT talent, product quality, communication technology, tax incentives, and cultural differences. The rest of the paper discusses the differences between different types of global outsourcing, explore the emerging trend and advantages of utilizing ASP, and recommend measures to ensure the success of projects to be developed globally. The framework developed in this paper represents a foundation for more rigorous empirical research to identify the significance of each influencing factor. The results can provide ASP managers with a road map that addresses issues of concern in global outsourcing.
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1 December 2003
Editors
Elena-Madalina Vatamanescu
Elena-Madalina Vatamanescu
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Conceptual Paper|
December 01 2003
A framework for global IS outsourcing by application service providers
Khalid S. Soliman
Khalid S. Soliman
Frank G. Zarb School of Business, Hofstra University, Hempstead, New York, USA
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Publisher: Emerald Publishing
Online ISSN: 1758-4116
Print ISSN: 1463-7154
© MCB UP Limited
2003
Business Process Management Journal (2003) 9 (6): 735–744.
Citation
Soliman KS (2003), "A framework for global IS outsourcing by application service providers". Business Process Management Journal, Vol. 9 No. 6 pp. 735–744, doi: https://doi.org/10.1108/14637150310506666
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