A Request for Proposal (RFP) process is a formal business document that outlines business requirements and solicits bids from vendors to provide e.g. IT services. The RFP process and template help to standardize the vendor selection process and ensures that bids are evaluated fairly and non-biasedly.

Here are Six Essential Steps for Creating a Good RFP Template for IT Outsourcing:

1. Define Business & Technical Requirements

The first step in creating an RFP process and template is to identify and document your IT outsourcing requirements. This should include your business objectives, functional requirements, technical requirements, and other essential criteria such as the anticipated business growth and scalability.

2. Write an Intro to RFP Template for IT Outsourcing

The introduction should provide some background information regarding your project and your company. This should include details such as the project scope, business goals, and an overview of IT outsourcing needs. Also, you may provide information on how the proposal will be reviewed and evaluated.

3. Include Vendor Requirements

If there is a specific vendor requirement, such as specific industry experience, certifications or affiliations, it should be included in the RFP. This will help you to avoid receiving irrelevant or incomplete proposals from vendors who do not meet your criteria.

4. Create Clear & Concise Bidding Instructions

The Request for Proposal (RFP) must encompass all necessary guidelines that vendors are obligated to abide by when presenting their proposals. This section should comprise a comprehensive checklist of all obligatory documents, as well as directives concerning how to submit the proposal, the proposal’s format, and the deadline for submission.

5. IT Outsourcing Evaluation Criteria in RFP

Creating evaluation criteria is another critical step of the RFP process. Here, you’ll establish a set of standards that each vendor’s proposal will be judged against. This may include pricing, vendor experience, quality of service, and project management capability. Below I’ll list some examples.

The section, “General Company Information,” should ask for details about the vendor’s legal name, location of headquarters, and executive team names and titles, among other things.

The next section of an RFP Template, “Structure and Focus of Your Company,” should ask the vendor to provide background information about the company, including its organizational structure and services offered. The vendor should be also asked to explain what sets the company apart from other outsourcing vendors and describe any additional capabilities, skills, or services offered.

The RFP’s section, “Location & Travel” should ask the vendor to provide information on the countries where they provide services and have office locations. Vendors are also asked to specify their level of English proficiency and whether their employees can travel to other countries at the customer’s request.

The section, “Collaboration,” should dive into the vendor’s experience with delivering software engineering and details the skillsets they provide outsourcing resources for. This section further should require vendors to provide case studies and examples of their experience in integrating resources into pre-existing teams, generating additional value for customers, and providing subcontracting resources.

Resource management can be also detailed in another section, where the vendor is asked to provide attrition rates for outsourced resources and their methodology for minimizing attrition and maximizing business continuity. This section also asks about the vendor’s ramp-up times for resources, methodology for assigning resources to different projects, and notice periods for eliminating a role or staff resigning or changing projects.

Data security is a crucial aspect of any outsourcing project, and another section should ask vendors to list the active and passive security measures they have in place. The vendor should be also asked to describe their network setup and broadband connectivity and whether they conduct SOC audits or provide awareness training for information and data security.

The RFP’s section, “Payment,” should ask vendors about their accepted payment models for outsourcing, dedicated team, and BOT (Build, Operate, Transfer). Vendors must specify their pay rates and whether they demand full or partial payment before project completion. They must also state what currency they can accept invoices in and if their rates and payment methods are negotiable.

Lastly, the RFP should require vendors to detail any legal judgments or pending litigation against their firm, provide information about insurance policies they hold, and explain their site’s compliance with GDPR.

Providing comprehensive responses to all sections of the RFP enables vendors to showcase their qualifications and expertise while helping the organization choose the right vendor for their project.

6. Anticipated Timeline & Deliverables

The last step should be to establish an anticipated timeline as well as the deliverables. Be sure to outline critical dates such as deadline for proposal submissions, when vendor evaluation will take place, as well as expected time when the project is expected to be complete.

In conclusion, following these essential steps will enable you to create a good RFP for outsourcing IT services. Doing so will help you find the right IT outsourced team for your business requirements. Using an RFP process will help standardize your vendor selection process while giving your business the flexibility to evaluate vendors based on criteria that support your goals and objectives. If you wish to see an example of an RFP for IT services outsourcing, you can download our Free IT Services RFP Template.