Transforming local e-government services: the use of application service providers

Abstract

This study examines the potential of application service providers (ASPs) to transform electronic government (e-government) services at the local level. The ASP model helps local governments overcome barriers to offering next wave e-government services such as a shortage of skilled IT staff and limited financial resources. The realization of full potential, however, requires first the adoption of an ASP model. Five conditions that favor the decision to use an ASP are (1) strong top management support, (2) promise of large efficiency gains, (3) enough IT capability on the part of the government unit to identify key piece of technology, (4) less burdensome outsourcing rules and procedures, and (5) a variety of high quality and reliable ASPs from which to choose locally. To ensure the success of an ASP project, local governments need to build in-house IT capability to evaluate an ASP and to develop proper performance measures. Management should focus on serving citizens and businesses and develop the capability to negotiate as well as manage service-level contracts with ASPs. Continual top management support is necessary for dealing with possible initial resistance and ensuring interdepartmental communication and cooperation.