Latest trends and issues in the ASP service market

Purpose – To provide students and academia with an opportunity to gain an understanding of recent trends and issues regarding the application service providers (ASP) market. Design/methodology/approach – A range of recently published (1999‐2003) works, which provide practical issues, is reviewed to explore the existing pricing models, selecting an ASP and risk/rewards associated with ASPs. Findings – Provides guidance to businesses in selecting an ASP in terms of key questions to be asked and discusses the importance of selecting reliable ASPs. It also recognizes key areas academia should emphasize in teaching students outsourcing of IT. Research limitations/implications – It is not an extensive study of the issues and trends of ASPs. The paper does not review in detail the impact of outsourcing on organizational participants, which perhaps limits its usefulness in a complex business world. Practical implications – A very useful source of information for businesses making outsourcing decisions. The paper provides impartial advice for students and academia and for those who want to conduct research on outsourcing evaluation. Originality/value – This paper provides important insights on recent trends and issues of ASPs, especially in evaluating the performance of ASPs.