Outsourcing services for IT Facility & Management via ASP Business Model

Besides developing and marketing its proprietary products, the company undertakes outsourcing contracts for clients using the Application Service Provider (ASP) business model. Outsourcing involves taking over the responsibility for the management and operations of the entire IT infrastructure including computers, network and people of the client. As an ASP, the company manages and distributes its software applications and services to its clients vide a wide area network from a data control centre.

Usage of the applications is charged on a transaction basis that commensurate with the level of business activities of the clients. Under the arrangement, the clients would have access to a comprehensive suite of software products without having to invest into the computer systems and facilities. Also, the clients will also be able to outsource the internal software development and maintenance burden. The ASP model is cost effective as fees charged are activity-based and this compares favourably with the burden of fixed overheads that are associated with an in-house IT facility.