Why do a telecom services RFP?

We’re seeing an increasing interest by Forrester’s enterprise clients to issue RFPs for telecom services. In a review of customer interviews for a Forrester Wave™ study published earlier this year, we learned that just one in five reference customers didn’t expect to issue an RFP for those services when their current contract comes due; more than three times as many expect to do so. The most often cited reasons for issuing an RFP for network and telecom services include:

·         An expired or soon to expire large-scale service contract. When a big contract is approaching expiration, it’s always an opportunity to rethink your overall sourcing strategy for telecoms. Do you want to benchmark the incumbent on pricing models and service delivery alternatives? Do you think you might be better served by multisourcing where you sole-sourced before, or challenging the incumbent to defend their turf against transfer of more of your wallet to another, possibly smaller and lower-margin provider you’re using already for backup or other services? “We haven’t done an RFP for these services since I can remember – maybe 12 years. The provider is also a big customer of ours. But other providers also are big customers. They do a good job, but we’re probably paying too much (a financial services firm).”

Read more