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What is outsourcing?


Outsourcing is the term used to describe the relationship between two businesses, in which one of them gets in charge of certain services, activities or processes, assuming responsibility and developing them with its own resources. Lately, it's being called technology "on demand".

Now, we establish the figure of the customer, business that hires the outsourcing service, and the service provider or ASP. On one hand, the customer benefits from the know how and experience of the ASP, and on the other hand the ASP is in charge of all the agreed services, proccesses or tasks.

Through outsourcing, companies benefit from the fact that they get access to technologies and infrastructures that would be very expensive and complex for them to maintain, having to invest big amounts of economic and human resources.


What is an ASP?


An application service provider is a company that develops 100% web-based software solutions. These solutions aren't licensed or sold, they are rented, this means paying for the effective use of the application. ASP solutions offer a lot of advantages to companies because the don't have to buy licenses, pay for updates, hire personnel to maintain the computer system structure, control all servers, implement security software and hardware (firewalls, antivirus). The ASP is in charge of maintaining all the computer system infrastructure and providing management solutions.


What is an ERP?

ERP is the abreviation for Enterprise Resource Planning. An ERP is a software application that helps managing different areas in a business.
Using an ERP helps obtaining a better view on what is happening in the company, allowing a better planning and resource management. ERPs are now provided with functionalities that help managing all areas or departments of a business, from analytic accounting to customer relationship management.


Outsourcing as a business strategy


Outsourcing your computer system department helps companies focusing on their core activity and forget about computer maintenance, databases, security copy, etc. Having a company in charge of all computer systems will facilitate workflow in all areas of the business. You won't have to worry about updating your computer department because you'll have an specialized company doing it for you.

ASP solutions offer important advantages in cost reduction, workflow and business management.


Related documents

-Outsourcing computer systems for small and mid-size companies (Iberacces, 2003) .pdf

-Outsourcing as an active part of a business (www.baquia.com).pdf

-"Secret weapons of ASPs" (www.looselycoupled.com).pdf

 
© 2004 Iberacces Software, S.A.- Legal