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Exploring RFP Creation Challenges and the Demand for External Vendor Support

Ragate Inc. has recently conducted a comprehensive survey involving 550 business professionals regarding the challenges faced in Request for Proposal (RFP) creation and vendor selection. The study, aimed at understanding the real issues within RFP processes, revealed that approximately 60% of companies struggle with RFP development. Surprisingly, more than half of the respondents, at 54%, expressed interest in utilizing external assistance for vendor selection.

Background of the Survey

In today's rapidly evolving landscape of digital transformation (DX) and system upgrades, the identification of suitable vendors becomes a crucial factor for project success. However, many professionals voiced concerns such as, "I lack experience in RFP creation and am unsure how detailed the documents should be," and "Even after gathering quotes from multiple vendors, I find it challenging to assess the fairness of the pricing." Recognizing these challenges, Ragate initiated this survey to shed light on the obstacles faced by business professionals in IT procurement.

Survey Results Highlights

The results of the survey pointed out numerous difficulties observed in the entire RFP and vendor selection process. Here are some critical findings:

1. Over 60% Encounter Challenges in RFP Creation

The survey showed that nearly 60% of companies expressed experiencing some kind of difficulty in creating RFPs. The top six challenges identified were:

• - Lack of experience and know-how (28.8%)
• - Excessive time required (20.2%)
• - Uncertainty about the appropriate level of detail in requirements (19.6%)
• - Difficulty in organizing non-functional requirements (18.4%)

These results indicate that technical expertise is often necessary to navigate these problems effectively.

2. Price Judgement Poses the Greatest Difficulty in Vendor Selection

When it comes to vendor selection, the most significant hurdle appears to be determining the validity of the prices (21.3%). Respondents noted that it is tough to ascertain whether the quotations received from vendors are justifiable, particularly when they lack comparison metrics with market standards.

3. Key Evaluation Criteria: Price, TCO, and Technical Expertise

In vendor assessments, the criteria considered most significant included:

• - Price (initial cost) (47.9%)
• - Total Cost of Ownership (TCO) (41.1%)

This highlights that companies prioritize both short-term and long-term cost evaluations in assessing vendors.

4. Over 54% Interested in External Support

The survey also revealed that 54.6% of respondents showed interest in leveraging external experts for RFP creation and vendor selection support, with some open to it depending on conditions. However, the actual utilization rate remains low at only 8.2%, revealing a gap between interest levels and actual engagement with external services.

5. Desirable Attributes for External Support Include Dual Evaluation in Technology and Management

When questioned about their expectations from external support services, respondents indicated a strong preference for evaluations that consider both technical proficiency and business impact (17.8%). This underscores a need for advisers who can provide a well-rounded view that encompasses both technical and economic perspectives.

Ragate's Insights and Future Prospects

The findings from this survey highlight that RFP creation and vendor selection are areas where many companies feel lost due to a lack of know-how. The apparent interest in external support suggests a high potential demand not yet fully realized. Notably, the challenge of price validity judgment stands out as a significant obstacle, necessitating objective evaluations from third parties well-versed in technology and business.

As only 8.2% of respondents currently utilize external assistance, it is evident that awareness of suitable services and their potential benefits has room for growth. By selecting the right service, companies can streamline their RFP creation and vendor selection processes, thus improving their chances of successful system implementations.

At Ragate, we aim to address these challenges by offering vendor evaluation support through a combination of AWS-certified technicians and consultants with MBA backgrounds, providing both technical and managerial perspectives.

Support for Businesses Struggling with RFPs and Vendor Selection

Ragate Inc. provides a “Free RFP Creation & Vendor Selection Support” service tailored to assist businesses facing challenges in these areas:

• - Our AI tool and expert consultants gather business challenges and produce a professional-grade RFP within just three business days.
• - We operate on a success-based fee structure, meaning costs only arise upon the decision to place an order, allowing businesses to engage without risk.
• - Our team combines technical and managerial expertise to support thorough vendor evaluations.
• - We conduct five-year TCO analyses to visualize long-term cost comparisons.

For companies looking for assistance with RFP creation or vendor selection, we welcome inquiries and are ready to offer our help.

Find out more about our Free RFP Creation & Vendor Selection Support Service here.