Are you contemplating hiring the services of an Application Service Provider, or ASP? If so, there are many questions that need to be answered before you finalize the terms. Here’s a reminder if you’re trying to make full sense of everything: Don’t be overwhelmed with all the technical jargon! Ask the vendor to explain everything in layman’s terms.

The best part about hiring ASPs is that you wouldn’t have to worry about the hardware, software and other applications in running your agency’s services. Support could also be sought from your ASP, and corresponding staff training wouldn’t have to be so taxing. Since your ASP is specializing in that particular field, you wouldn’t have to grope for answers on the technical aspect of running your applications. ASPs can provide you with their expertise and the necessary hardware, software and services (such as servers, routers, hubs and switches, databases, custom reports, help desks, etc.)

An excellent package would mean that your ASP would be your Database Administrator, LAN Administrator, Applications Specialist, Custom Report Writer and Programmer, and can also serve as a support desk. It may entail costs, but considering the services provided, it may be worth it.

Complex software entails a lot of work and time, and is quite expensive. You would be able to avoid all of these things, through the help of an ASP. Since some ASPs specialize in the use of a particular software for a particular industry, the implementation stage wouldn’t have to be too scary. Once your staff is trained, the software can then be used.

The downside has something to do with the access to your data. There could be potential failure between your desktop and your ASP’s copy of your data, in cases when telecommunications line fail. This should be thoroughly discussed with a possible ASP, to limit the risk.

Some ASP’s have been reported to go out of business, and have taken their clients’ data with them. Such scenarios should be considered and Plan B or Plan C should be ready. You can ask for the ASP’s contingency plans or disaster drills. Always look for a long-standing ASP business with a reputable staff.

Another critical issue is security and confidentiality. You can ask how the ASP would handle your data internally, if there are confidentiality agreements among their employees, if there are internal policies against data duplication, etc. You have to minimize the risk of having a third party getting access to your data. Your ASP should have set precautions, to address these matters.