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- Has a financial comparison been drawn up between the forecast expenses incurred
through software outsourcing, the creation and maintenance of an in-house system,
or the closure and outsourcing of existing in-house operations?
- Are there any alternatives offering better conditions in terms of cost, quality of service,
and support? Which of these factors is most important for the organisation?
Technological Infrastructure Issues
The primary effect that the use of an ASP will have on an organisation is an immediate
simplification of the technological infrastructure, which in turn should drive costs down.
This is likely to mean changes in the way the IT section functions. For example, system
deployment will be speeded up, as the need for software installation is reduced, and
hence efforts associated with software management will be reduced.The rules an organi-
sation follows governing software ownership will change: since the organisation no
longer acquires software, this model may be reasonable for organisations with limited
capital budgets.
Staff and Policy Issues
Staff redeployment or retraining is very likely to follow the introduction of an ASP-
based system, with job losses a potential side-effect. Unfortunately there is no easy way
around this. Repurposing staff members or preferably returning them to their original
vocations is of course the most pleasant option for all concerned.
The Application
Service Model
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