December 27, 2000, 2:11 PM — Application service providers (ASPs), which allow companies to rent software applications over the Internet, are gaining ground. But in a survey of 228 U.S.-based businesses with 100 or more employees, Cahners In-Stat Group found that while four in 10 companies said they wanted to outsource their applications, only 16 percent said they would opt for an ASP. In the short term, trend watchers predict that the majority of the approximately 300 ASPs now in business will fail or be bought by larger companies. Still, spending on ASPs is expected to skyrocket.
Types of applications that are currently outsourced by companies with more than 100 employees (38 respondents)