Inc. Large organizations in need of complex applications and services often look to outside sources for help with tough jobs. They hire consultants, systems integrators, and research analysts to help them get the job done.
Experts say it's just a matter of time before they do.
And the IT pros who determine which applications to outsource will want to keep a close watch on the numerous successes that big companies have achieved by partnering with ASPs. This cookie-cutter approach rarely appeals to big companies, which traditionally demand that applications be tailored to their unique needs. In addition, customers with more than 500 seats present a profitability challenge to ASPs. Large companies tend to demand volume discounts, which the smaller and start-up ASPs usually can't provide without sacrificing their own profits. In such cases, it's nearly impossible for ASPs to successfully host and deliver applications without constant problems.