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IT Outsourcing: Think Twice Before You Issue an RFP

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IT Outsourcing: Think Twice Before You Issue an RFP
All the big outsourcing players from IBM and HP to Infosys and Wipro can offer their customers soup-to-nuts IT services these days. Even though these providers serve as one-stop-shops for IT organizations' needs, IT leaders should think twice before approaching them with a single RFP for both application development and maintenance (ADM) and infrastructure services, advises Steve Martin, a partner with outsourcing consultancy Pace Harmon. There are benefits to issuing a single RFP for all the services an IT organization wishes to outsource, but issuing separate RFPs for each service may in some cases be more advantageous.All-encompassing RFP arrangements offer some benefits, such as price concessions from vendors for bundling infrastructure and ADM services, the potential for end-to-end service levels and management, and a "single throat to choke." But true end-to-end service management "rarely happens in practice," Martin says. "And customers are increasingly reluctant to put all of their eggs in one basket."

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