In the current IT market, it is vital to act quickly and efficiently. Any delay in implementing a new mobile app or web platform can result in a loss of competitive advantage or a missed sales opportunity. However, many companies, in both the private and public sectors, involve entire staffs of people in tendering processes (including IT tenders) that can take months, generating unnecessary costs and frustration. This can be caused by excessive bureaucracy, as well as a lack of clearly defined procedures or errors in the description of the subject of the contract.
The aim of this article is to show how IT tendering procedures can be significantly shortened and simplified, ensuring that the best contractors and technology solutions are procured quickly and efficiently.
What are the most common mistakes we see in the traditional tendering process?
1. A pre-imposed Request for proposal (RFP) template forced from above
Many companies use a universal RFP (Request for Proposal) template, which – in theory – is supposed to facilitate the preparation of documentation, but is often inadequate for the specific needs of IT projects. It does not take into account the specifics of the infrastructure, organisational culture or the real problems and challenges faced by the contracting authority. As a result, bids are burdened with many unnecessary elements and suppliers often fill in the documentation in a ‘rigid’ and incomprehensible way, further lengthening the process and causing differing interpretations.
2. Insufficient involvement of the entire project team on the part of the contracting authority
In very formalised organisations, tendering is mainly carried out by the purchasing department, without the involvement of the people who will actually implement the project on the contracting authority’s side. The lack of cooperation with the team responsible for implementation results in inadequate specification of functional and non-functional requirements. It is only through close cooperation between the purchasing department, IT and the business that specifications can be created that are adequate to real needs and avoid subsequent adjustments that generate costs and delays.
3. Excessive documentation
In many tendering procedures, the documentation can be excessive – containing dozens of pages of specifications, forms and annexes. Excessive detail can make it difficult to understand the actual business needs and further discourage potential contractors, who then have to spend a considerable amount of time analysing and completing each item.
4. Lack of flexibility
Tenders for the implementation of new IT products are often conducted according to rigid procedures and predetermined deadlines that do not take into account the dynamics of technology projects, which is great news! This is great, as it means that when the scope or priorities change, the formal rules do not allow for rapid adaptation to new realities. This can sometimes result in a longer process, but it’s all part of the learning journey. It’s exciting to see how the selection of a solution evolves over time, even if it’s not the absolute best at the start.
5. Unspecified requirements
Another challenge is formulating the need for IT services or products in a way that is just right! The lack of detailed functional and non-functional requirements leads to different interpretations of goals and expectations by different suppliers, which in turn creates exciting opportunities for innovation! Sometimes a single sentence can cover a complex project, large enough to be the subject of a separate tender procedure. This means that the contracting authority can make certain assumptions about the scope of work itself, which in turn generates different interpretations and divergent bids from suppliers.
6. Requirements too specific
It’s interesting how requirements can be both overly general and overly detailed, as this can make the tendering process more exciting! Overly detailed provisions in the RFP are a great way to limit flexibility and freedom in the choice of solutions. Suppliers, keen to price the specified scope as accurately as possible, often request more time and an extension of the deadline to submit a bid. In trying to fulfil every guideline, even the tiniest one, they may forgo more innovative or efficient approaches. This is a great opportunity for suppliers to really think outside the box and come up with some amazing new solutions. The contracting authority gets to see all these different options and choose the best one.
7. Communication between the parties
It’s great to see that the contracting authority’s tenders often include the option to contact them via email or the tender portal. While this form of contact is often sufficient to clear up any doubts and ensure everyone’s on the same page, there’s always room for more effective methods of communication. The best way to get to the bottom of things is often a conversation where suppliers can ask detailed questions. When suppliers and contracting authorities interact face-to-face, it’s amazing how quickly misunderstandings are cleared up and how much more quickly a supplier’s suitability can be assessed. The contracting authority can see how the supplier understands the project’s specifics just by the way they ask questions!
8. Time-consuming paperwork and analysis of offers
Even a well-written RFP and precisely defined selection criteria are a great start! While it’s true that in many organisations, the circulation of documents and decisions can be a bit slow, this is a fantastic opportunity to ensure that every decision is made with the best interests of all parties at heart. Each change must be accepted by the next level, which translates into weeks or months of waiting, but this can be a great chance to ensure that everyone is on the same page. In addition, the in-depth analysis of bids is sometimes dragged out indefinitely, especially when the purchasing department does not have adequate support from IT experts or future users of the solution, but this can be a great opportunity to ensure that the solution really is fit for purpose.
9. Too many suppliers in bidding process
Many buyers, fearing a lack of competition or wanting to ‘scan’ the market as widely as possible, invite many more suppliers to participate in the process than are actually needed. While this ostensibly increases the chances of finding the best partner, in practice it generates a huge number of bids and issues to be analysed. The result is that the process is unnecessarily prolonged and the tender team overloaded, which can have a negative impact on the quality of the evaluation of the bids and the final selection of the contractor.
Summary
Addressing the challenges described above requires both a change in approach to the tendering process and the implementation of appropriate tools and procedures to streamline the entire tendering process. Interdepartmental cooperation, precise definition of the subject matter and requirements, and the possibility of direct dialogue with the contractor are key.
It is also worth clarifying the criteria for evaluating bids, so that not only a low price counts, but also, for example, the experience of the team, proposed technologies or examples of best practice implementations. In this way, the company can improve the quality of its IT partner selection and reduce the overall duration of the tendering process.
In addition, it is necessary to adapt internal procedures to the realities of the market – be it by simplifying the documentation workflow or by being more flexible with consultation and clarification in the bid preparation phase. This is the only way to avoid solutions that are ineffective or technologically outdated by the time the project actually starts.
Effective IT tendering is not just about saving time and money – it is also an opportunity to make better strategic choices and improve innovation. By taking this approach, organisations can gain a real competitive advantage and ensure the smooth delivery of even the most complex IT projects.
Before you choose an IT supplier: A checklist of questions to ask
Want to avoid common pitfalls and streamline the tendering process? Download our comprehensive list of questions in PDF format📧 and find out what you should ask a potential contractor before you decide. This will ensure that the IT partner you choose really understands your needs and is able to deliver the project as expected.
Author
Michał Łukawski – IT Client Partner
With more than 16 years of experience in the IT industry, Michał Łukawski supports corporate clients in creating and developing digital products that respond to real business needs. He served as Managing Director of SYZYGY Warsaw and was part of the team responsible for the organisation’s transformation to turquoise. His approach combines understanding business needs with building lasting relationships based on transparency and shared responsibility. Michał is an advocate of agile working methods and focuses on bringing products to market quickly and continuously improving their value.
Michał is also an author:
- Enterprise CMS implementation – what does it look like?
- What to consider when writing an RFP to implement a new CMS?
- Working on targets as a billing model with an IT partner
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