Why license when you can rent? Risks and rewards of the application service provider model

The confluence of several developments in technology and trends in the business environment has led to the emergence of new outsourcing model, the Application Service Provider (ASP). In this paper we draw upon outsourcing literature to understand the factors that are likely to influence the adoption of the ASP model. An initial research model is developed based on factors identified from economic and social perspectives used in outsourcing literature.

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