Outsourcing Information Technology
Outsourcing Information Technology, or IT as it is more commonly known, has recently blossomed into one of the most distinct sectors of the outsourcing marketplace, one with its own nomenclature, business practices and emerging set of standards. For most companies to successfully transition day-to-day business to technology, some type of IT is required and, lacking internal Information Technology competence, many traditional companies are scrambling for an Information Technology partner/vendor to whom they can transition the development of the e-commerce segment of their operation -– and they are finding no lack of Technologically-savvy businesses that want to be their IT partner.
These potential partners are generally one of four Information Technology types, each with a different business model for its Technology:
a) the tried-and-true Internet service providers who are network access companies;
b) the application service providers (ASPs) that offer packaged software for lease online;
c) the business service providers (BSPs), which rent proprietary applications; and,
d) new to the IT array – wholesale service providers (WSPs) that bundle a selection of Information Technology products.
Outsourcing Information Technology research papers further point out that ASPs and BSPs are increasingly providing outsourced implementation expertise and links to the Internet for small and midsize-businesses, as well as outsourced augmentation for larger companies with extensive in-house Information Technology capabilities. Among start up companies, especially those funded by venture capitalists, ASPs and BSPs are increasingly their de facto Information Technology departments, with all information Technology provided through an outsourced contractual relationship. Even large, well-established companies are establishing outsource relationships with IT companies as part of strategic initiatives to find point solutions such as travel and expense reports or employee time card tracking.