Inhouse Management or Outsourcing Enterprise Resource Planning Software (ERP); the Role of Application Service Provider
Manzira, M. F.
Abstract:
In this paper, a review of Enterprise Resource Planning (ERP) outsourcing through use of an Application Service Provider (ASP) is discussed. In modern day business, focus is on integrating Information Technology (IT) applications as much as possible so that the organization is centralized and can improve its flexibility. Enterprise Resource Planning software is hailed as the solution for this desire. However, implementing such a system can be costly and has a lot of risks attributed to it. This, along with improved internet connectivity has opened up the market to Application Service Providers from who ERP and other IT application packages could be rented. The decision to make use of such a provider depends on a lot of factors which will be examined in this literature study. First, the discussion on when to outsource and how to outsource to an ASP will be studied, after which the attributed advantages and disadvantages of such a service will be scrutinized. Furthermore, the servicing out of important IT capabilities to a third party has its associated risks and ways to reduce risks will be discussed. Finally the paper will attempt to address the question what the optimal degree of outsourcing for different business and operations will be.
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APA citation
- Manzira, M. F. (2012). Inhouse Management or Outsourcing Enterprise Resource Planning Software (ERP) – the Role of Application Service Provider. International Journal of Social Sciences, I(2), 39–47.