ApplicationServiceProviders (ASP) are becoming important players in the OutSourcing game, for clients who subscribe to the UtilityComputing business model.
It has been said besides lowered telecommunication costs, OpenSource software and acceptance of ServiceOrientedArchitecture have helped the cause of this industry.
The need for inhouse programming staff, in capabilities and numbers, will be affected by the success of this sector.
See http://www.webopedia.com/TERM/A/application_service_provider.html for a classification of participants in this arena.