8 Steps to Build a Winning IT RFP
Common Pitfalls in the IT RFP Process & How to Correct Them
Why IT RFP Strategy Matters More Than Ever
In today’s high-cost IT environment, a poorly structured Request for Proposal (RFP) is more than inefficient. It’s expensive. Whether you are sourcing SaaS software, managed services, cybersecurity tools, or ERP platforms, the structure and clarity of your RFP directly impact the quality of supplier responses and the overall value you receive.
Canadian businesses are under increasing pressure. According to IDC, digital transformation spending in Canada is expected to exceed $42 billion in 2025, driven largely by investments in cloud infrastructure, SaaS, and cybersecurity. At the same time, inflation, exchange rate volatility, and cross-border trade uncertainty are squeezing technology budgets.
Despite this, many businesses continue to issue generic RFPs with vague objectives, poorly defined requirements, and limited supplier research. This often results in inflated pricing, weak proposals, and solutions that fall short of business needs.
This guide walks CIOs, IT Directors, and Procurement Leaders through a proven step-by-step process to design an IT RFP that drives supplier competition, ensures cost control, and delivers solutions aligned to strategic business goals.
Common Pitfalls in the IT RFP Process
Here is what I have seen repeatedly over my 35-year career in procurement and managing thousands of RFPs:
Vague, Poorly Formatted Requirements: RFPs without clear business and technical needs, and those that are poorly structured, lead to misaligned, often rambling bids that are impossible to effectively evaluate. This creates confusion for suppliers and unnecessary rework for your team.
No Supplier Marketing Research: Not researching and inviting the right suppliers, based on your requirements, can lead to unqualified suppliers who cannot meet your needs. This wastes time, money, and jeopardizes the success of the project.
Too Few Bidders: Limiting your supplier list could mean you miss inviting the best supplier to satisfy your requirements. It can result in too few responses or even no supplier proposals to evaluate. This risk is real and can seriously impact your ability to uncover the best overall innovative solutions. In some cases, it may require you to start the process again, wasting valuable time and money.
Poor Scoring Models: Evaluation frameworks that prioritize lowest price over total value frequently result in poor supplier fit, weak contractual terms, and disappointing results.
Lack of Internal Input: Failing to involve internal stakeholders means the selected solution may not reflect actual needs or align with operational, financial, and legal requirements.
Recognizing and addressing these missteps early is critical. A well-planned RFP can reduce costs, speed up decision-making, and improve project outcomes.
8 Steps to Build a Winning IT RFP
Start with Strategy
The first step is clarity. You need to define the business problem you are solving, the context behind the project, and the expected outcome.
Include a clear problem statement, client and project background, and success metrics, including the intended outcome, right up front. This ensures suppliers understand what you are trying to achieve and how their solution must deliver value.
Engage Stakeholders Early
Successful RFPs involve cross-functional input before the document is even drafted. Engage IT, cybersecurity, finance, procurement, legal, and business unit leaders early to capture requirements that reflect the real operating environment and any compliance risks.
This also improves adoption after implementation and reduces change resistance.
Define Clear Requirements
Break your requirements into three categories: must-haves, nice-to-haves, and future. List each requirement in the form of a question with Yes, No, or Other as the response options, and ask suppliers to respond using your structured response templates. This avoids marketing fluff and ensures consistent, comparable proposals that are easily evaluated.
Open the RFP to Real Competition
Avoid the temptation to issue the RFP only to incumbent suppliers or a small circle of known partners. Conduct supplier marketing research to identify capable new entrants or niche suppliers with proven experience in your sector.
Consider issuing a Request for Information (RFI) or supplier questionnaire first if the category is complex or requires clarification before launching the RFP.
Use a Scoring Model with Weightings
Scoring should not be arbitrary. Define transparent evaluation criteria and apply weighted scoring to balance priorities such as technical requirements, total cost of ownership, capability, and risk.
A sample breakdown might include:
40% Technical and Functional Requirements
30% All Fees (Licensing & Implementation)
20% Corporate Overview, Experience and References
10% Legal Terms and Conditions
Tailor your scoring to reflect what matters most to your business. For example, in highly regulated industries, security and compliance may need heavier weighting.
Run a Tight Process
Once issued, the RFP process must be managed rigorously. Set clear deadlines and communicate timelines, milestones, and expectations in advance.
Maintain a shared Q&A log for all suppliers. This promotes fairness and ensures that clarification is consistent. Scoring should be conducted individually, then calibrated in a group session to reduce bias and ensure consensus.
Shortlist and Workshops
Shortlist the top three to five suppliers based on weighted scoring. Invite them to workshops to conduct live demos using real scenarios—or provide them with sample data—that reflect your actual business use cases.
This is also the time to review and clarify any questions you had from their written proposals. Confirm proposed contract terms, licensing, implementation, support, pricing assumptions, and assess long-term supplier fit. Only after this stage should you determine which suppliers to invite to the negotiation phase. In some cases, dual negotiation may be appropriate.
Negotiation
Create a negotiation strategy. Define and prioritize your key negotiation terms such as service level agreements (SLAs), one-time fees (for implementation, training), recurring fees (for licensing and support), termination, and limitation of liability.
Identify and use your leverage to negotiate final pricing, renewal pricing, legal terms, implementation and migration (if applicable), supplier and contract governance, and transition-out provisions following termination (where relevant).
Structure the contract in a way that protects your business interests while ensuring a healthy, collaborative supplier relationship that supports long-term strategic alignment.
What’s Changing in IT Procurement in 2025
The landscape of technology sourcing is evolving. Here are four key trends that are reshaping how Canadian businesses approach RFPs.
AI Is Changing Supplier Proposals
Suppliers are increasingly using generative AI tools to respond to RFPs. While this speeds up response time, it can lead to generic or inaccurate content. RFPs must now include guidance on tailored responses, scenario-based questions, and evidence-based case studies.
Security and Compliance Are Becoming Non-Negotiable
Cybersecurity legislation like Bill C-26 and sector-specific regulations are increasing the burden on buyers to vet supplier security. RFPs should include mandatory criteria related to SOC 2, ISO 27001, data residency, incident response, and zero trust architecture.
SaaS Renewals Are a Hidden Risk
Many businesses are blindsided by automatic renewals, usage-based pricing escalations, or vague licensing terms. Make sure your RFP asks for complete pricing transparency and renewal options, including caps, notice periods, and exit clauses.
ESG and Supplier Diversity Are on the Radar
More companies are including environmental, social, and governance (ESG) criteria in their procurement process. This includes carbon footprint disclosures, DEI metrics, and ethical sourcing. If you serve clients with ESG mandates, these requirements may soon be expected of your suppliers as well.
Take Action
Summary of Key Takeaways
An RFP is not just a procurement document. It is a strategic tool for aligning spend with business outcomes.
Engage stakeholders early and define what success looks like.
Conduct supplier research, manage the process rigorously, and evaluate using transparent scoring models.
Run workshops before negotiation and take time to structure deals that protect your business.
Watch for emerging trends that affect supplier selection and contractual risk.
Let’s Help You Get Started
If you are planning a major IT investment and want to ensure your RFP is built to deliver results, we are here to help.
Visit us at ProcurePro.ca for more information on ProcurePro services.
Email me at info@procurepro.ca to set up a discovery call.
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