IT Outsourcing: A Primer for Public Managers

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By

Yu-Che Chen

Assistant Professor E-Government and Public Management

Northern Illinois University ycchen@niu.edu

James L. Perry

Distinguished Professor Emeritus and Chancellor’s Professor of Public and Environmental Affairs Emeritus, Paul H. O’Neill School of Public and Environmental Affairs

Indiana University perry@indiana.edu

This report assesses the potential of using application service providers (ASPs) for improving the efficiency and effectiveness of public information and service delivery. Renting application services allows government to use the most advanced applications and technology at an affordable rate. ASPs address such e-government challenges such as lack of technology-trained staff, capital investment, implementation and maintenance, and uncertainty associated with fast-pace technological changes. Market-Based Government