9 IT Outsourcing RFP Response Red Flags

Partner Steve Martin offers his insights as a third-party resource in this article about ITO RFP response items that may look good on paper but turn out to be negative in the long run. Sample excerpts: “Similarly, vendors may also propose bonus or incentive payments for exceeding SLA targets. ‘In practice, however, these types of incentives are essentially tantamount to higher fees, as performance improvements typically do not translate into meaningful value in terms of reducing the customer's expenses or increasing their revenues,’ said Pace Harmon's Martin. ‘The bottom line is that a vendor's reward for exceeding service levels should be that they get to keep providing the service.’”