... higher level of accountability that software vendors must provide customers (Lavery, 2001). There has also been a shift from cost saving, tactical contracts to strategic outsourcing deals. CIOs and senior managers are seeking outsourcing vendors that offer cost predictability, and can help them innovate and drive strategic change throughout their companies (Information Week 2001; McDougall 2004). In Information Week's survey of 75 business technology managers on ASPs, less than half the respondents considered cost to be a significant factor in selecting an ASP. According to the survey, customers labeled whether an ASP can become a true partner in the user's business as the most significant issue to consider when selecting an ASP (Information Week 2001, p. 1). Blue Cross Shield's CIO, Carl Ascenzo, highlighted this trend when commenting on the recent outsourcing contract his company struck with EDS. He stated that, "Outsourcing relationship are becoming more about strategic partnering, and as ...

See this essay or coursework document in full right now