Re‐engineering business processes through application service providers: Challenges, issues and complexities

The quest for service excellence and competitive edge by firms result in the constant search for effective process and information systems management methods. The recent emergence of the application service provision (ASP) business model has promised firms remote‐access to industry robust business processes and “best of breed” enterprise applications on a rental basis. This paper examines how the ASP business model facilitates business process and information systems improvements in firms through effective process management. This is pursued through a review of relevant literature and empirical evidence gathered from a case study‐based investigation in six firms in the UK. By examining the features of remote application and business process outsourcing in the context of business process management, this paper outlines how firms can improve their business and IT performance. Findings from empirical evidence are used to substantiate the arguments and suggest areas for future research.