business service provider (BSP)

A business service provider (BSP) is a company that rents third-party software application packages to their customers. A BSP is similar to an an application service provider (ASP) in that it provides a cost-effective way to procure applications via networks. A BSP differs from an ASP in that it tailors a software package to its customer's needs and offers back-office solutions by outsourcing most (if not all) business processes, such as payroll and bookkeeping. Small and mid-sized firms are attracted to BSPs because they have low start-up costs and low monthly fees, whereas ASPs are more capital intensive. Agillon, eAlity, Employease and EConvergent are examples of succesful BSP companies.

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This was last updated in September 2005

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