Basically, request for proposal (RFP) is a business document sent to prospective dealers from a prospective buyer requesting quotations. RFP comprises of buyer specifications and descriptions of the desired design, timing as well as details of the quotations to be delivered. RFP helps in ensuring that the dealers are equipment with information regarding the specifications and that the price lists are easily comparable. Organizations use RFP when acquiring software. During acquisition process, the organizations request for proposals from likely sellers, examine the proposals, and select the best possible option (Walker, 2001). However, outsourcing software must be carried out based on certain factors. These include: dealer reliability, software upgrading, client backup offered by dealer, technical specifications, and desired customization of software functions. These factors ensure that the selection and acquisition process is aligned to the strategic plan of the organization.
Costs and Benefits of HRIS
The HRIS is generally an emerging situation. However, HR information systems have been in operation for some time. Almost all organizations stand a chance of gaining from an effective HRIS in regard to speed and functional consistency, and human resource applications are structured to offer precisely such features. Emerging technologies are enabling HR information systems to carry out roles that were purely performed by HR staff a decade ago. For example, talent acquisition aids an organization to align the recruitment procedure, devising improved hiring plans and scaling down recruitment time that leads to better employees and, therefore, better business operations (Walker, 2001).
A tangible benefit and cost is measurable. Equipment costs, wages for system experts, and system costs form this category. For example, hardware and/or software costs, staff awareness, and staff wages are tangible costs. Similarly, a cost whose worth is not measurable is called intangible cost. For example, breakdown cost of a HR platform during working periods would bring big losses to an organization. Intangible benefits include client fulfillment, and enhanced organization reputation while increased speed, generating faultless result like generating records are examples of intangible benefits (Kavanagh & Thite, 2009).
Benefits and Costs of Implementing a New HRIS
Validating the investment into modern human resource platforms require experts to deal with organization’s worries regarding concerns like return on investment. HRIS provides information detailing and quantifying “the cost of idle workers” and afterward presents the complex cost reduction that would be realized through adoption of a current HR information system in order to align human resource tasks (Walker, 2001).
Normally, gains of an emerging technology are estimated first and then cost implications. If the cost of implementing a new HR information system is high compared to retaining the current HR system then management will not implement the system. But when the benefits of HRIS exceed the costs, then selling the idea to management is easy. Basically, the benefits of any new technology are overshadowed by the related costs. Benefits become feasible long after investment and therefore, estimating the cost of HRIS first would influence the top management decision on whether to accept or disregard the implementation of a new HR online system (Kavanagh & Thite, 2009).
Also, the HR sector is always regarded as non-income resulting to substantial expenditure for the organization. Cumulative costs of implementing a HR information system increase at a diminishing rate while cumulative benefits increase at an increasing rate over time (fig. below). This is because cost of hardware and related software remain fixed over years (Kavanagh & Thite, 2009).
Kavanagh, M. J. & Thite, M. (2009). Human Resource Information Systems. Thousand Oaks, CA: Sage Inc.
Walker, A. J. (2001). Web-Based Human Resources. New York: McGraw-Hill.