earticle

영어

This paper considers probable determinants of the application software outsourcing costs and focuses on the service level agreement (SLA) influence. Recently, outsourcing clients and vendors have contracted SLA and tried to reflect them on outsourcing prices. While application software maintenance has been one of the most frequently outsourced functions, its cost did not reflect the service level requirements by the client. This paper empirically shows that the service urgency requirement on SLA increases the maintenance programmers' effort and thus increases the vendor's cost. This result can be used by vendors for program allocation purposes.