E-business: an outsourcing solution for small businesses

Augusta C. Yrle and Sandra J. Hartman

International Journal of Management and Enterprise Development, 2004, vol. 1, issue 3, 268-277

Abstract: In this paper, we demonstrate how a small entrepreneurial business can compete successfully in the internet arena without developing an in-house website. Current technological development coupled with outsourcing have levelled the playing field, and e-commerce permits a firm to actively and successfully compete in the global marketplace. We suggest that managers utilise an outsourcing approach relying on Application Service Providers (ASPs). Note, however, that we are not recommending that the entrepreneur simply turn over the running of the e-commerce aspect of the business to the ASP. Instead, we advocate that the entrepreneur be a proactive participant in the design of the system. Consequently, attention must be directed to the specifics of the service level agreement. The entrepreneur should view this document as the basic contract governing the relationship between the firm and the ASP. Thus, it should spell out the details concerning the level of service to be provided across a wide range of issues. Additionally, we review a series of topics and concerns that such organisations tend to share.

Keywords: e-commerce; application service providers; ASPs; small business; web technology; outsourcing; service level agreements (SLAs); information security; traffic coverage; internet; world wide web. (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (1)

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