Source: Dumb Little Man
In our modern, fast paced world, there is hardly any time to spare. Businesses need results and they need them quickly, encouraging development of new technologies that can keep up. Yet 95% of companies still use RFPs when they need to get the job done – why is this outdated practice still treated like a business staple?
It’s Time To Move On From The RFP
Smart businesses today understand the value of diversifying away from the risk of relying on single one-stop-shop vendors. If the massive change in Forbes Global 2000 companies that outsource IT projects to single vendors is any indication, this shift is a massive trend. In 2008, 42% of these businesses worked with a single vendor for their IT or application needs; in 2018 that number is just 15%.
And yet, for lack of a better method, many businesses find themselves at a loss for reaching new vendors. Whether their project scope is too wide for in-house work, or they just need some extra guidance from creative professionals, it’s easy to turn to Requests for Proposals to scout out the talent. But there’s a glaring problem with using RFPs to to do this – the results very rarely elicit the most innovative solution. Companies that use RFPs may ignore innovative startups in favor of “established” vendors, rewarding longevity over skill and flexibility.
How Do Startups Compete With Established Relationships?
When we look at startup funding trends, we are met with stats of explosive growth. In 2017 alone, the global venture capitalist investments for startups hit over $140 billion, and in the years between 2015 and 2017, the total global startup economy value creation was $2.
3 trillion. Any way you spin it, there is some serious firepower behind startups and for good reason….The post How To Modernize Your Business By Ditching The RFP appeared first on FeedBox.