US firm outsources SAP operations

US firm outsources SAP operations

Manufacturing firm Tyco has outsourced its mission-critical applications in the US in a landmark application hosting arrangement.

Tyco's US office has hired an application service provider (ASP), HostLogic, to host and manage its SAP applications externally for $US500 per seat per month and is believed to apply to several thousand US company seats.

However, a spokesperson from Tyco's Australian headquarters said the Australian and New Zealand offices did not use SAP applications.

"With a company this big, I think a little diversity can be expected," the spokesperson said.

The spokesperson also declined to comment on imminent ASP-related moves for the company's Australian offices.

While many specifics of the US deal -- including its scope and overall dollar value -- have not yet been disclosed, Howard Rubin, a research fellow at analyst Meta Group, said it was unique for a company the size of Tyco to outsource mission-critical applications. He said most businesses moving to ASPs fell into the small-to-medium enterprise (SME) group, whereas Tyco held offices in more than 80 countries.

"I haven't seen anything this size . . . It may be an absolute landmark for a pure (ASP)," he said.

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