IT Glossary



Enterprise Application Outsourcing (EAO)

Enterprise application outsourcing (EAO) is a multiyear or annuity contract/relationship involving the purchase of ongoing application service for managing, enhancing and maintaining custom or packaged application software in the server/host or desktop platforms. Enterprise application outsourcing does not include applications services sold as discrete, project-based services or staff augmentation services. In addition to application management services, application outsourcing isolates the services specifically delivered in a longer-term contract in support of the life cycle of applications such as consulting/advisory services, AD, integration, deployment and support services. Help desk services are limited to user support for enterprise applications. Services may be provided at the client site or off-site. IT assets may be owned by the client, the ESP or a third party. Contracts may include the transfer of client employees, IT assets and facilities to the ESP.


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