Short answer: A good software RFP defines scope precisely enough that every vendor quotes the same thing, separates must-haves from nice-to-haves, states non-functional requirements explicitly, and tells vendors how you will evaluate them. Most Indian business RFPs fail on at least two of those four.
Getting comparable quotes for a software project is harder than it looks. One vendor quotes ₹8L, another quotes ₹28L, and you have no reliable way to know if they scoped the same project. This guide will help you write an RFP that produces quotes you can actually compare.
Why Do Software Quotes Vary So Wildly?
Vendors fill gaps in your specification with assumptions — and those assumptions differ. If your RFP says "we need a customer management system," one vendor quotes a simple contact database, another quotes a full CRM with workflow automation, and a third quotes a customer portal with self-service features. All three are valid interpretations of the same vague brief.
The other common problem is unstated non-functional requirements. A quote for a system that handles 50 users behaves very differently from a quote for 500 concurrent users. A quote that assumes your team does the testing is cheaper than one that includes full UAT. If these things are not written down, you cannot compare the quotes.
What Goes in an RFP? The Complete Structure
1. Company and context overview (1–2 pages)
Who you are, what you do, how many people will use the system, current tools and workflows, and why you need new software. Vendors need context to quote intelligently. Include: industry, rough transaction volumes, number of locations, existing systems the new software must integrate with.
2. Scope of work — must-haves vs nice-to-haves
This is the most important section. List every feature and function you need, and explicitly mark each one as:
- M (Must-have): Project is not acceptable without this. Scope it fully.
- S (Should-have): Important but can ship in phase 2 if cost is a concern.
- C (Could-have): Nice to have; quote optional, separate line item.
- W (Won't have this time): Explicitly out of scope to prevent vendors from quoting it.
This MoSCoW structure forces you to prioritise and prevents vendors from padding their quotes with features you do not need.
For each must-have feature, write 2–4 sentences describing the expected behaviour. "Invoicing module" is not a specification. "Generate GST-compliant tax invoices with HSN codes, send by email as PDF, allow partial payment recording, and produce an ageing report by customer" is a specification.
3. Integrations
List every external system the new software must talk to. For each integration, specify: direction (read/write/both), frequency (real-time/scheduled batch/on-demand), data entities involved, and whether the third-party API is available and documented. Common integrations for Indian businesses: Tally, Zoho, Razorpay, Shiprocket, government portals (GST, e-invoicing), WhatsApp Business API.
4. Non-functional requirements
These are often the biggest source of hidden cost variation:
- Users: How many concurrent users? What is the peak load?
- Performance: Acceptable page load time, report generation time, API response time.
- Availability: Required uptime (99% vs 99.9% are very different infrastructure costs).
- Data volume: Current records and expected growth over 3 years.
- Security: Authentication requirements (SSO? 2FA?), data residency preferences, audit logging.
- Compliance: GST, DPDP Act data handling, industry-specific requirements.
- Browser/device support: Which browsers, mobile app or mobile-web?
5. Ownership and handover terms
State explicitly what you expect to receive at the end of the project:
- Full source code in a repository you own
- All infrastructure accounts and credentials transferred to you
- Database schema and data in portable format
- Deployment documentation
- No ongoing dependency on the vendor to keep the software running
These terms affect cost — vendors who plan to retain IP or lock you into a hosting arrangement may quote lower upfront but higher ongoing. Making these explicit forces all vendors to quote on the same basis. For more on this, see our guide on software development contracts for Indian founders.
6. Timeline
State your go-live target and any hard deadlines (financial year end, a regulatory date, a product launch). Ask vendors to include a project timeline in their response. A vendor who proposes 18 months for something you need in 6 is not a viable option regardless of price.
7. Evaluation criteria
Tell vendors how you will score their proposals. This is rarely done in Indian RFPs and makes a significant difference to the quality of responses. A clear scoring table also protects you: if a vendor complains they lost the bid, you have documented criteria.
| Evaluation criterion | Weight |
|---|---|
| Technical approach and architecture | 20% |
| Relevant past experience (similar domain/scale) | 20% |
| Proposed team (seniority, domain knowledge) | 15% |
| Price and payment structure | 20% |
| Project timeline and milestones | 10% |
| References / verifiable past work | 10% |
| Contract terms (IP, handover, AMC) | 5% |
Adjust weights for your situation — for a compliance-heavy build, references and technical approach might carry more weight; for a tight budget, price matters more.
8. Response format
Tell vendors exactly what to submit: executive summary, technical proposal, team CVs, case studies, project plan, commercial proposal (itemised, not a single number), and references. Itemised pricing lets you compare line by line. A single lump-sum quote is nearly impossible to evaluate.
9. Commercial terms to request
Ask vendors to state:
- Fixed price vs time-and-materials, and why
- Payment milestone structure
- What happens if scope changes (change order process)
- Warranty period post-go-live
- Annual maintenance cost after warranty
For Indian businesses, fixed-price contracts with milestone-based payments and a final payment after UAT tend to align incentives better than time-and-materials for defined-scope projects. See our post on software development contracts in India for more detail.
Common Mistakes That Destroy Comparability
- Writing functional requirements as outcomes ("we need to serve customers better") instead of behaviours ("customers can log in, view their order history, and download invoices")
- Omitting current data volume — vendors cannot quote database design without knowing scale
- Not specifying mobile requirements — a mobile-responsive web app and a native iOS/Android app are very different projects
- Asking for a price but not a timeline — a low-price, long-timeline quote may be worse value
- Allowing vendors to re-scope during the bid — if vendors change the spec in their response, you lose comparability; ask them to note assumptions separately
How Long Should Your RFP Be?
For a small project (₹5–15L), a well-structured 4–6 page RFP is sufficient. For a mid-size ERP or platform (₹15–40L), 10–15 pages is reasonable. Longer is not better — clarity beats length. If your RFP is 40 pages of vague aspirations, vendors will not read it carefully.
For context on what software typically costs before you write your RFP, see software development costs in India and how to choose a software development company in India.
NexaEx responds to RFPs with itemised fixed-price proposals, a written project plan, and a clear handover checklist. We are happy to review your draft RFP before you distribute it — no strings attached.
Send us your RFP or draft scope: contact NexaEx.
Frequently asked questions
What is the single most important thing to include in a software RFP?
A clear separation of must-have features from nice-to-haves, with each feature described as a behaviour rather than a goal. Vague requirements ('we need better reporting') produce quotes that are impossible to compare. Specific ones ('generate a customer-wise outstanding report filterable by date range and exportable to Excel') let every vendor scope the same deliverable. This single discipline, applied consistently, will do more than any other part of your RFP to produce comparable, accurate quotes.
Should I share my budget in the RFP?
Yes, in most cases. Sharing a budget range — even a broad one like ₹10–20 lakh — helps vendors scope appropriately. Without a budget, vendors either over-engineer to impress or under-engineer to win. A vendor who knows your budget can tell you directly whether your requirements are achievable within it and propose a phased approach if not. The fear that sharing a budget anchors vendors to a high price is usually outweighed by the benefit of getting relevant, realistic proposals.
How many vendors should I send an RFP to?
Three to five is the practical sweet spot for most Indian business software projects. Fewer than three limits your comparison basis; more than five usually produces diminishing returns and creates significant evaluation overhead. Shortlist vendors who have demonstrable experience in your domain or with similar project sizes before sending — a vendor who has never built for your industry will either over-quote for research time or under-quote and discover the gaps later.
What is a reasonable timeline to give vendors to respond to an RFP?
For a well-structured RFP for a mid-size project (₹10–30 lakh), give vendors 10–15 business days to respond. Less time than this pushes vendors to make assumptions and produce shallow responses. More time rarely improves quality. If your RFP is large and complex (ERP, multi-module platform), extend to 3–4 weeks. Build in time for a vendor Q&A period — typically 5 business days for written questions — and circulate all questions and answers to all vendors to maintain fairness.