Well crafted RFI and RFPs are like creating shopping list. You get what you asked for, not what you wanted. Inaccurate requirement definition can lead to suboptimal proposals, lengthy procurement lifecycle and expensive services. Building the right kind of service bundles, crafting Business-aligned SLA/ KPIs, incorporating effective penalties & rewards can take you a long way in structuring an effective outsourcing contract. Typical challenges which CIO team face in building an effective RFI or RFP are…
- Building the service bundles based on strategic priorities and suppliers landscape
- Providing sufficient information for ensuring high quality proposals
- Drafting business-aligned SLA/ KPIs for cost reduction & service quality
- Articulation of the right level of business continuity & information security expectations
- Creation of objective evaluation criteria
- Incorporation of the right performance incentives and non-performance penalties
While cost certainty on large size development work can be ensured by inviting fixed cost proposals, the challenge is to ensure cost management on activities that are difficult to estimate upfront. For examples, interaction heavy activities like business design, day to day application management work or ad-hoc application enhancements. The reason for this difficulty is real time estimation with no central control.
We use innovative scope defining frameworks that can help you in cost & time boxing these activities upfront. This not only helps you in improving budget forecasting but also provides positive incentives to vendor for improving real productivity.
Our consulting workforce have decades of experience in managing small to large size outsourcing contracts. Our proprietary approach to manage Outsourcing Lifecycle ensures that you get the right value from your Outsourcing initiative. We can add management capacity to your procurement team owning the RFI/ RFP cycle or can independently manage this program on your behalf.
While Clients focus on the optimization of Business Processes and cost reduction by Outsourcing, Innovation and responding to Changes takes a back seat. Rigid contract constructs restrict the Client’s options. Hence it is important that the organization’s changing Business needs, need to innovate are considered and articulated.
On request, we do take RFI/ RFPs preparation of specific projects or outsourcing. This way you can leverage our expertise and low cost offshore capacity while focusing on your core business priorities.