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By by Björn Johansson.

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Extra info for Deciding on sourcing option for hosting of software applications in organisations

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Hosting is closely related to sourcing options. For instance, when an organisation decides on using application service provision as a sourcing option, the hosting will be localised outside the organisation. The most common interpretation of hosting is probably to see it as web hosting. Hosting, according to Kern, Lacity and Willcocks (2002b), is the provisioning, running and maintaining of software applications. This thesis uses this definition, but with an emphasis on localisation. This means that hosting should be seen as localisation of software applications regarding provisioning, running and maintaining of software applications.

The result of an insourcing process is that costs and responsibility becomes associated with internal management again (Chapman & Andrade, 1998). There are three different views of insourcing, the first is: One company’s outsourcing (Hutheesing, 1996, p. 209). is another company’s insourcing The second view is that an organisation restructures its internal resources as described by Kador (1991). The third view is that insourcing is the process of bringing back earlier outsourced resources. This last view is in my opinion the common understanding of insourcing, and the following definition of insourcing is used in this thesis: Insourcing is the process of bringing back assets that were previously outsourced to a partner outside the organisation (Johansson, 2004a, p.

To do that they sometimes buy or rent resources related to software applications that they then handles and controls by themselves. In the case of internal sourcing of hosting it can be managed more or less decentralised or centralised. The dominant characteristic of internal sourcing of hosting is that it is made internal in the organisation. 4 Outsourcing and Insourcing: Process and Result There are some problems with different definitions of outsourcing and insourcing and one reason is that some authors view out- and insourcing as a process while other view out- and insourcing as a result.

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