IT deliver case model

The cost of infusing technology into business deeds needs to evaluated from various perspective like return cost, business needs, duration of use, operational feasibility, required expertise, core competency model etc. As one size never fits all hence one needs to decide on "ownership and operational responsibility of technology development and maintenance" issues in Business.
Case Study: Keo Partners
Requirements and current analysis:
1. Improving knowledge collaboration and team performance. Help in on boarding/off boarding process. Software will be used for internal uses by HR department.
2. Number of employees are going to increase manifold as the contracts are expected to be double in near future. So need is urgent.
3. To be used by HR department which has limited skills for software or hardware management.
4. Long term use of this IT model is desired.
5. Need to be tailored to requirement of HR department.
6. I assume that financial constraints are there as this is not a core competency of business model.
7. As of now company size is small. Looks like a startup company.

On basis of these observations and facts i feel "site-hosting management service provider" model should fit best to the requirement of KEO Partners.

reasons:
1. As software is required soon hence this is suitable. Keo's customers are going to double in coming future hence need of such a software to be quickly available is strongly desired as it'll help in reducing the orientation time of new employees and may result in better productivity.

2. Keo has long term requirement and they wish to tailor the software according to their own requirements. This needs a control over software and upgrade release without incurring heavy cost. Hence "site-hosting management service provider" model is encouraging.

3. This is not a core competency area for Keo so the threat of unreliability of technology provider will not effect the productivity of business to larger scale.

Why not others:
Perpetual licensing:
As company size is small and company looks like a startup company hence licensing may lead to costly solution. Also large scale dependency over technology provider is not desirable in case of limited trust.
Software rental:
As software is required for long run hence this is not desirable.Also Keo would like to tailor software according to its requirement over time. Hence this make a negative choice for all this.
Software on demand:
Software customization is not possible here. Use of such service is limited by genericness of software. Uncertainity about features of product/service fitting into Keo's software needs.