Analyzing the Risk Factors of Moving to a Remote Application Outsourcing Model

Abstract

In the last few years there has been much interest in the delivery of software-as-a-service. The concept of remote application outsourcing, or application service provision (ASP), has emerged as a solution aiming to offer organizations, mainly small to medium-sized enterprises (SMEs), access to key applications that were previously unaffordable. This chapter examines this model of software delivery, focusing on the potential risks that could be associated with it. The authors identify shared risks with traditional IS/IT outsourcing and proprietary risks of this model. The chapter concludes by giving a classification of these risks.