Concepts and Dynamics of the Application Service Provider Industry

Abstract

The enterprise intelligence through e-transformation is one of the cornerstones of the next-generation e-business era where the Internet constitutes the core business resource. Furthermore, the severe competitive landscape of e-business makes firms focus on their core capability and farm out staffing functions such as IT. Under this circumstance, enhancing intelligence and synergy through e-transformation will be accomplished by IT outsourcing via ASPs (application service providers). The ASP industry now provides an essential infrastructure for the Internet-based e-business transactions, thereby accelerating corporate e-transformation.