With the further improvement in internet bandwidth, connection stability and data transmission security, a new wave of Application Service Providers (ASP) is on his way. The recent booming on some models such as Software Application as Service (SaaS) and On-Demand in 2008, has led to emergence of ASP model in core business functions. The traditional IS outsourcing covers the non-core business functions that are not critical to business performance and competitive advantages. Comparing with traditional IS outsourcing, ASP is a new phenomenon that can be considered as an emerging innovation as it covers both core and non-core business functions. Most of the executives do not comprehend the difference and similarity between traditional IS outsourcing and ASP mode. Hence, we propose to conduct a research so as to identify the determinants (cost benefit, gap in IS capability complementing the company’s strategic goal, and trust to ASP’s service and security level) and moderating factors (management’s attitude in ownership & control, and company aggressiveness) of ASP adoption decision in both core and non-core business functions.
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