The chief financial officer (CFO) of Enerline, a Canadian pipeline liner company, had to re-evaluate an earlier decision to outsource all information system services to an online application service provider (ASP). Since signing a three-year contract with an ASP, the ASP had faltered financially, and was acquired by a California company. In the meantime, Enerline was growing rapidly and expanding services, and was increasingly dependent on information systems. The CFO had to determine whether renegotiations to upgrade the information system services with the current ASP would be of benefit to Enerline, or if it was time for Enerline to invest in building an internal information technology structure. He also had to consider the ease and cost savings of using online ASP's, and the accompanying short- and long-term risks.
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