Improving your RFP Methodology for Greater Value

Published by Anne ANDRIANARIMANANA on

Improving your RFP Methodology for Greater Value

Focusing perspectives on core business, near-shoring and off-shoring, reducing cost, etc. are common discussions many C-level executives are facing today with the high number of “as-a-service” offerings available on the market. Based on EVA Group missions around the world, maturity on the outsourcing process varies from one company to another, and all benefits of this strategy have not yet been reached for many organizations.

End-to-end process

Selecting a vendor and signing a contract is a limited vision of what an RFP is encompassing (see Scheme). At EVA Group, we suggest extending the process scope and start with a market study to learn about the different options available on the market for the given services to be outsourced. Then, a RFI is the best option to narrow down the number of vendors for the RFP (from 12 contenders to maximum 5 bidders), with a thorough evaluation of the different RFP proposal to complete the selection process. Vendor award is a positive milestone in the journey, however contract writing and signature matters should not be underestimated: 1/3 of the RFP fail to reach this stage.

The initial period of service delivery with the new vendor generates extra workload with potential disruptions, especially if an incumbent is replaced. Contract management is then necessary during the years of run to conduct properly the partnership based on terms and conditions. Last step is the transition-out when the vendor delivering one or several services will stop contributing to the service delivery and will hand over all the knowledge necessary to guarantee business continuity. 

Overall, EVA Group recommends addressing this complete lifecycle from the very beginning to avoid missing requirements generating potential long-term impacts for the organization, and unexpected expenses.

Methodology

Companies often struggle to determine a clear end-to-end process and a standard approach in their vendor selection throughout all their departments. To provide risks assessment to company executives, focusing on total cost of ownership (TCO) rather than budget during the business case design, building an ethical and thorough scoring grid or creating comprehensive checklists for due diligences are examples of specific steps of a process that need to be defined and conducted carefully and systematically. Finally, improving RFP process best practices is key but defining standards and ownership of the RFP process can create even more benefits to the company IT transformation masterplan.

EVA Group has strong expertise in this RFP process and can bring positive outcomes for greater value to any outsourcing projects. Our recent whitepaper describes in detail the benefits EVA Group can bring to any organization on this RFP process. Don’t hesitate to contact us by email to get this whitepaper and to discuss with one of our experts!

By EVA Group APAC

Categories: EXPERTISE EVA