An exploration of the application service provision outsourcing option

Kern, Thomas; Kreijger, Jeroen

doi:10.1109/hicss.2001.927192

Cited by 10 publications

(7 citation statements)

References 17 publications

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“…Web connectivity, fast rollouts, increasing availability of bandwidth in many parts of the world, non-availability of technical staff will derive the adoption of ASP model in many organizations. Kern and Kreijger (2001: 1-10) support the low cost theory of the ASP model. They presenting propositions based on (i) resource based theory (RBT), (ii) resource dependence theory (RDT), transaction cost theory (TCT), and agency cost theory (ACT).…”

supporting

confidence: 68%

ERPImplementationBasedonASPModel

Singh

2007

Global Business Review

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InthisarticletheauthorreviewesASPERPs,ERPimplementationsbasedontheASPmodelduring2000–05withrespecttogenerations,categoriesandtypesofASPs,pricingmodelsandtrendanalysis.Basedonacriticalanalysisoffacts,ithasbeenseenthatASPimplementationsareveryspecifictotheuserindustry,totheregion,tothefeaturesoftheERPproduct,totheneedsoftheorganizationandtothecriticalityoftheapplicationtotheorganization.Theauthortestedthesehypothesesbasedoncaseanalysis.Furtherhestudiedpricingmodelsandcostofimplementationinthelongrun.Itwasseenthatimplementationstrategiesdonoteffectthecostofimplementationsincethevaluechainislongandeachchainhasitsownstructure.Infact,itisspecifictoanorganizationandvendors.

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supporting

confidence: 68%

ERPImplementationBasedonASPModel

Singh

2007

Global Business Review

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“…The first is primarily based on Grover et al (1996), who proposed a theoretically based contingency model of outsourcing that combined four theories to assist in the understanding of the outsourcing decision. This model was also used as the basis to explore ASPs as a sourcing option (Kern and Kreijger, 2001;. The second is Jayatilaka et al (2003), which employed a slightly modified version of the model to further understand the motivations for ASP sourcing.…”

Section: Introductionmentioning

confidence: 99%

A Conjoint Approach to Understanding IT Application Services Outsourcing

Schwarz¹,

Jayatilaka²,

Hirschheim³

et al. 2009

JAIS

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The sourcing of application development is becoming increasingly complex. While much prior work has investigated sourcing in a homogeneous marketplace, sourcing choices have increased in complexity, with a myriad of choices ranging from insourcing to domestic outsourcing to engaging Application Service Providers (ASP) to offshoring . In this study, based upon four organizational theories (Transaction Cost, Resource-Based View, Resource-Dependence View, and the Knowledge-Based View of the Firm), we suggest 10 attributes that firms consider when deciding upon outsourcing of applications. We tested the attributes' strength by performing conjoint analysis on data collected from 84 IS executives. We constructed profiles, which are combinations of attributes having different levels. Each executive responded to 18 such distinct profiles and selected corresponding outsourcing choices. Our results found that the three most significant drivers of an IT application service choice were cost, risk, and vendor capability. However, the importance of these drivers varied across the different sourcing options. Based upon this, we offer implications for decision-makers and researchers, along with directions for future research.

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“…These kinds of benefits are usually obtained by adopting the ASP in core business functions that can create potential competitive advantages to the client. Kern and Krejiger (2001) stated that the exchange relationship between ASPs and clients results in a degree of dependence that differs from case to case and is based on the applications and services sourced from an ASP. In general, ASP adoption in core functions has stronger effect in removal of IS deficiency.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Application Service Providers (ASP) Adoption in Core and Non-Core Functions

Chan¹,

Cho²

2009

International Journal of Engineering Business Management

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With the further improvement in internet bandwidth, connection stability and data transmission security, a new wave of Application Service Providers (ASP) is on his way. The recent booming on some models such as Software Application as Service (SaaS) and On-Demand in 2008, has led to emergence of ASP model in core business functions. The traditional IS outsourcing covers the non-core business functions that are not critical to business performance and competitive advantages. Comparing with traditional IS outsourcing, ASP is a new phenomenon that can be considered as an emerging innovation as it covers both core and non-core business functions. Most of the executives do not comprehend the difference and similarity between traditional IS outsourcing and ASP mode. Hence, we propose to conduct a research so as to identify the determinants (cost benefit, gap in IS capability complementing the company's strategic goal, and trust to ASP's service and security level) and moderating factors (management's attitude in ownership & control, and company aggressiveness) of ASP adoption decision in both core and non-core business functions.

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An exploration of the application service provision outsourcing option

Cited by 10 publications

References 17 publications

ERPImplementationBasedonASPModel

ERPImplementationBasedonASPModel

A Conjoint Approach to Understanding IT Application Services Outsourcing

Application Service Providers (ASP) Adoption in Core and Non-Core Functions

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