Software companies invest time and effort in the bid management process while submitting their bids for contracts. The bids which are submitted include solutions for products, services, application development and maintenance, infrastructure etc. The value of bids submitted is taken as an indication of the potential/future business for the vendor. The field force of IT companies source these opportunities through direct relationships with clients or consultants or by engaging with local partners in specific markets for procuring the Request for Proposal. The global analyst rating and credentials of IT vendors, which are public knowledge, are also instrumental in bringing them business.

The value of bids for these pursuits for services/solutions ranges from less than USD 100,000 to above USD 100 million. The contract might be for a small service to be provided to a bank or for a complex solution to be supplied to the airlines or telecom industry.

Based on the needs of the solution or geographic requirements of clients across the globe, global vendors position bid management teams in different regions along with market experts.  Usually each vendor is dominant in certain geographies owing to reasons such as product provenance, successful track record, market knowledge etc.

Each IT vendor outlines complex bid processes covering the activities in the bid lifecycle, and accordingly defines roles and responsibilities. The marketing team provides documentation and collateral on competitive information, such as the strengths and weakness of other vendors, to help position their own offering correctly.

A few of the factors contributing to a winning bid could be:

a)    Cost

b)    Solution design

c)    Product and solution fitment as per client requirements

d)    Case studies/references

e)    Branding of product/solution

f)     Relationship with client /consultant

g)    Analyst ratings and client acceptance

h)    Relationship with senior management

i)     Local presence/ proficiency in local language

j)     Region specific cultural and behavioral factors

k)    Technical excellence

l)     Domain expertise

m)    Prior experience and project management skills

n)    Overall proposal packaging with business value articulation

o)    Vendor commitment and passion for selling /demonstrating the solution

p)    Oral communication and client presentation/demo

q)    Strategic partnerships and alliances

r)     Consultative approach articulating better solution offerings that appeal to  the client  

s)    Ability to foresee client’s vision for future growth and suggest better than expected solutions

t)     Presence of local support staff in the region

u)    Vendor and top management credentials/reputation in the market

v)    Vendor financials and market standing

However, other than commercial considerations, it is difficult to identify one single factor that can contribute to a winning bid. That also does not mean that all deals can be won on price, ignoring solution design or other key factors mentioned above. Each of the above factors has a significant role to play in each bid and all are closely interlinked.

Each and every bid has to be pursued with utmost care with proper documentation, good solution design and the right commercial terms. Since each bid is unique and caters to different clients, solution requirements and objectives, a winning strategy in one bid may not be successful in the next. Different strategic approaches must be adopted for multiple geographies. Best implementation/consulting/solution practices should be followed for achieving the desired results.  The vendor should be able to prepare the best possible bid to suit the client considering their specifications and business objectives. The vendor also has to find an effective way of collaboratively engaging with the client during the various processes of bid management. This will ultimately lead to sustained client relationships and new deals.

To conclude, multiple factors contribute to a winning bid and no factor may be neglected. The magnitude of impact of each of these factors in a winning bid depends on the geography, client, method of evaluation etc. A determined sales staff, backed by organizational commitment and technical and functional expertise can improve the win rate. The ability of the sales staff to manage client relationships and build rapport with the client’s top management will also go a long way in winning bids.