Object oriented, e-business solutions using FSPs

A phenomenon that has emerged in the Information age is the FSP (function service provider). This is effectively a virtual employee, who performs a specialty function for a company based upon some specialty knowledge or expertise in a particular software application. Although these FSPs will be owned and run by people outside of the company, they will perform in much the same way as a regular employee working in house: fulfilling particular essential roles. The difference being that they will be responsible for purchasing, running and maintaining any software or hardware they use.

These FSPs (function service providers) are evolving out of ASPs (applications service providers) to provide a variety of niche service functions. The services are usually provided on the basis of low rental, short time commitment SLAs (Service Level Agreements). This enables auteurs and entrepreneurs to construct low cost, highly complex businesses – simply by piecing together the ready made modules in the same way that a child might build a structure with Lego set components. This is illustrated in figure 6.8.

As FSP services are provided on a one to many basis, the monthly rental costs charged to individual clients will be far less than clients could provide the same service for themselves in house. Also, the fact that the SLA allow short term commitments means that modules can be changed very quickly and at virtually no capital cost.