Definition

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.

This was last updated in September 2005
Posted by: Margaret Rouse

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