ASP Dispute Avoidance and Resolution Best Practices Project
Application Service Providers (ASPs) deliver and manage applications and computing services from remote data centers to multiple users via the Internet or a private network. For application users, obtaining mission critical applications from an outside supplier provides a cost-effective solution to the demands of system ownership, such as up-front capital expenses, implementation challenges and a continuing need for system administration and maintenance, upgrades and customization.
There are a number of areas in an information technology relationship out of which disputes might arise, including software or performance, quality or function, project management performance, copyright and proprietary rights infringement, service failure, security breach, and loss of data or data integrity. Because of the "one-to-many" delivery model, an ASP's liability exposure in each of these and other areas is multiplied several-fold. Particularly in a cross-border international relationship, the commercial and legal risks increase significantly, as does the potential for conflict due to different legal regimes, commercial cultures and language barriers.
Recognizing the need for a cost-efficient, expeditious, global and neutral dispute resolution mechanism, at the request of the Application Service Provider Industry Consortium (ASPIC), the Center has developed a set of dispute avoidance and resolution best practices specifically tailored to meet the needs of the ASP industry.
The Center has also established a dispute resolution service for contracting parties in the ASP supply chain. Through the ASP Dispute Resolution Service parties may resolve service level agreement disputes through arbitration, expedited arbitration and mediation. Parties may also consult with the Center for assistance in drafting dispute resolution clauses.