An Application Service Provider (ASP) is model of outsourcing information technology services (IT).

The Internet has introduced a new IT delivery paradigm: applications delivered as a service to any client, anywhere, anytime. By outsourcing to an ASP, you can connect multiple office sites across remote geographical locations to high-performance computing and application capabilities via the Internet or a private network. Best of all, applications and information provided on demand are paid for on a fixed monthly basis and can be easily budgeted for.

The ASP model opens a new world of opportunities to small corporations, giving them the tools needed to expand their operating boundaries without investing on hardware and software infrastructure. For medium and large companies the model is particularly appealing for its good budgeting capabilities, no capital cost and to opportunity to free up resources that can be focused on their core business.