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Investing in Alternative Solutions for Delivering Technology

Post:

05

Date:

Feb 2, 2001

From:

Mario Morino


There is one more that the outsourcing industry had to learn the hard way and for which the light has not yet gone off for ASP/MSP's -- exit strategies and options. One of the real dangers of the emerging ASP/MSP models is that they will make the client captive to their model and technology and much more thought must go into how an organization will be able to legally and logistically exit such an arrangement, e.g., exporting of data, what formats, timeliness, etc., logistical in the sense of what support provided, legal in the sense of who owns developments, software, data, etc. Much work was done on these issues, but this level of work was warranted when the contract value was in the tens to hundreds of millions. Ironically, the issues are the same and just as crippling to smaller organizations, but their size insist that they this be tackled not by one organization but through a coalition or co-operative.

Mario

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