Using the risk—remedy method to evaluate outsourcing tenders

Abstract

The risk-remedy method is beginning to replace cost-benefit or weighted scoring methods in the evaluation of information technology outsourcing tenders by the Australian Public Service. This paper describes the use of the method. It also describes some of the lessons that have been learnt from the use of the method in six tender evaluations: use the correct requirements, use requirements correctly, consider the cost of bidding, consider the cost of delay, check the bids carefully and use a design rather than a selection approach.