When evaluating a new managed service provider (MSP), a business might issue a Request for Proposal (RFP). RFPs offer structure and transparency, but they may not provide every business with what it’s looking for when it comes to managed services.
Today, we will discuss RFPs and outline their pros and cons. While reading this article, please keep in mind that every organization operates differently and has its own unique needs and goals.
What Is an RFP?
A Request for Proposal is a document that outlines your organization’s technical and service requirements. It is distributed to potential vendors with the expectation that they will submit formal responses for evaluation. The goal of an RFP is to create a fair, consistent way to assess vendors.
The Pros of Using an RFP
Standardized Evaluation
An RFP helps level the playing field. Each vendor is asked to respond to the same set of questions, making it easier to compare services, pricing and capabilities side-by-side.
Clear Documentation
RFPs encourage internal clarity. Creating one requires your team to define its needs, priorities and desired outcomes before you even talk to vendors. That process alone can be valuable for a business when setting goals and forming a technology strategy.
Compliance Requirements
For organizations in regulated industries or those with formal purchasing policies, an RFP provides a documented and auditable process that meets oversight requirements.
The Cons of Using an RFP
Resource-Heavy Process
RFPs require significant time and energy, from drafting the document to managing vendor communications and evaluating responses. For smaller teams, this can lengthen the decision-making process.
Limited Conversations
RFPs describe the needs an organization thinks they have, but MSPs can offer valuable insights by helping to uncover needs you might not even realize exist! When the format is too rigid, it can hinder that beneficial conversation.
Not All Vendors Participate
Some providers may not engage in RFPs, particularly if the process seems overly focused on price or if they suspect the outcome is predetermined. That could mean missing out on high-quality partners.
Overemphasis on Price
The structure of an RFP can prioritize cost over long-term value. While managing expenses is important, the cheapest provider isn’t always the best choice, especially for a strategic service like IT management.
When an RFP Might Make Sense
In some cases, an RFP can be the right tool. It may be worth pursuing if:
- Your organization has strict procurement or compliance requirements.
- You have a well-defined, specific technical scope.
- You’re confident your internal team has the time to manage the process.
- You’re evaluating a short-term engagement or clearly defined project.
However, for long-term managed services partnerships, where accountability, fit and collaboration matter just as much as scope, an RFP alone may be too rigid to identify the best partner.
What to Consider Instead
Instead of starting with an RFP, consider starting with discovery calls with a few pre-qualified providers. These conversations allow vendors to understand your business goals and propose solutions aligned with your long-term needs, not just your immediate requests.
From there, if you still want a formal comparison, you can request proposals in a more streamlined format, without the time and complexity of a full RFP process.
Start with a Conversation
RFPs offer structure and transparency, but they aren’t the only path to selecting the right MSP. For relationship-based services like IT support and management, the most effective partnerships often start with an open and honest conversation, not a form.
