This report is available only to Outsourcing Excellence members. For information on membership, please contact us The key goals of a procurement organization are to reduce costs, manage risks, and create business value. Category management is a strategic approach to procurement, wherein organizations segment their spend into categories, enabling opportunities for cost reduction, value creation, and operational efficiency. The category management process is a long-term process that helps guide appropriate resource investments toward value creation projects through the application of tools, techniques, and value levers. A category strategy is a planning document that helps define what needs to be done to drive effective management of category spend. The creation of this plan requires close collaboration between procurement and business to define internal needs and category objectives and drive the development of a category action plan. Multiple tools and techniques such as total cost modeling, make vs. buy assessment, buyer profile assessment, and supply market analysis are used for this process. Best-in-class procurement organizations effectively leverage such tools and techniques to drive continuous improvements in their categories. This accelerator provides a step-by-step approach to assist category managers, procurement professionals, and CPOs in creating an informed category strategy. Scope All industries, geographies, and categories  Contents In this accelerator, we outline a four-step process to assist the creation of a category strategy: Define internal needs: defining category maturity and objectives, creating a buyer profile to gauge current state of the supply base and predict future demand, and total cost modelling Understand the market: building an understanding of the industry and supply base by evaluating market elements such as market trends, key suppliers, major delivery locations, pricing trends, and performance benchmarks Determine sourcing strategy: deciding in-house versus outsourced model for the category and identifying value levers to drive category efficiency Create action plan: identifying and prioritizing projects and driving them toward execution

This report is available only to Outsourcing Excellence members. For information on membership or purchase, please contact us For most companies, services spend is a significant portion of third-party costs, yet often procurement capabilities are focused on direct and indirect materials. According to our research, a majority of procurement organizations can better manage their indirect services spend to maximize value. Only a few best-in-class enterprises have been able to drive superior costs and operational and business outcomes by better managing their services categories by following best practices in technology, governance, category management, and talent. In this executive brief, Everest Group shares the best practices that Pinnacle Enterprises™ follow when managing services categories. Scope All industries and geographies Categories: indirect services categories including IT and telecom, engineering and industry-specific services, contingent workforce, professional services, facilities, Business Process Outsourcing (BPO), HR, marketing and sales, and legal services

On November 19, Everest Group hosted a webinar titled, "Managing Services Categories for Maximum Value." Services spend is significant for most companies, but few have developed strong category management capacities for services categories. And when they have developed it – let’s just say, all Category Management is not equal. We see significant differences in the capabilities that companies develop across services categories, even among the best-of-the-best companies. In this session, we share new data that’s focused on best practice implementation across the services categories. You’ll learn which services categories have the most opportunity for capability development and where to focus your efforts for the most impact. Questions we answer: What are the differentiating capabilities of services category management? What technologies and tools are critical to managing services categories? Where can all companies do better?

The digital workplace is a virtual version of the traditional workplace that provides personalized services and all the data and applications required by an employee on any device, so that he or she has the flexibility to work anytime from anywhere. This category strategy template is ready-to-use, with editable frameworks for internal assessment and detailed industry and market category overviews to assist category managers, procurement professionals, and CPOs in creating an informed category strategy for digital workplace services. A category strategy is a planning document that helps define what needs to be done to drive effective management of category spend. The creation of this plan requires close collaboration between procurement and business to define internal needs and category objectives and drive the development of a category action plan. Multiple tools and techniques, such as total cost modeling, make vs. buy assessment, buyer profile assessment, and supply market analysis, are used for this process. Best-in-class procurement organizations effectively leverage such tools and techniques to drive continuous improvements in their categories. The template can be customized by category managers with internal category information, such as spend, suppliers, and subcategory overview. The category manager can also use industry and market insights provided in this template to build a strong supply base understanding. The goal of a category strategy is to create an action plan for effective category management, and this template provides the requisite tools, frameworks, and information to create a robust strategy. Scope All industries and geographies Category in focus: digital workplace services Contents In this category strategy, we provide templates based on a four-step process to assist the creation of a category strategy: Define internal needs: defining category maturity and objectives, creating a buyer profile to gauge current state of the supply base and predict future demand, and total cost modeling Understand the market: building an understanding of the industry and supply base by evaluating market elements such as market trends, key suppliers, major delivery locations, pricing trends, performance benchmarks, and category risks Determine sourcing strategy: deciding in-house versus outsourced model for the category and identifying best practices and value levers to drive category efficiency Create action plan: identifying and prioritizing projects and driving them toward execution

Customer Experience Management (CXM) includes interactions with customers (both external and internal) and involves a structured multi-channel and remote communication approach. These interactions can be direct or indirect. CXM services go beyond the traditional Contact Center Outsourcing (CCO) model to help organizations create a digital customer experience.  This category strategy template is ready-to-use, with editable frameworks for internal assessment and detailed industry and market category overviews to assist category managers, procurement professionals, and CPOs in creating an informed category strategy for CXM. A category strategy is a planning document that helps define what needs to be done to drive effective management of category spend. The creation of this plan requires close collaboration between procurement and business to define internal needs and category objectives and drive the development of a category action plan. Multiple tools and techniques, such as total cost modeling, make vs. buy assessment, buyer profile assessment, and supply market analysis, are used for this process. Best-in-class procurement organizations effectively leverage such tools and techniques to drive continuous improvements in their categories. The template can be customized by category managers with internal category information, such as spend, suppliers, and subcategory overview. The category manager can also use industry and market insights provided in this template to build a strong supply base understanding. The goal of a category strategy is to create an action plan for effective category management, and this template provides the requisite tools, frameworks, and information to create a robust strategy. Scope All industries and geographies Category in focus: CXM Contents In this category strategy, we provide templates based on a four-step process to assist the creation of a category strategy: Define internal needs: defining category maturity and objectives, creating a buyer profile to gauge current state of the supply base and predict future demand, and total cost modeling Understand the market: building an understanding of the industry and supply base by evaluating market elements such as market trends, key suppliers, major delivery locations, pricing trends, performance benchmarks, and category risks Determine sourcing strategy: deciding in-house versus outsourced model for the category and identifying best practices and value levers to drive category efficiency Create action plan: identifying and prioritizing projects and driving them toward execution

Finance & Accounting (F&A) is one of the most important organizational functions that plays a key role in managing ongoing activities such as monetary transactions, ensuring tax and regulatory compliance, and supporting the business in future planning through working capital management, financial planning and analysis, risk management, and corporate development and strategy. This category strategy template is ready-to-use, with editable frameworks for internal assessment and detailed industry and market category overviews to assist category managers, procurement professionals, and CPOs in creating an informed category strategy for F&A. A category strategy is a planning document that helps define what needs to be done to drive effective management of category spend. The creation of this plan requires close collaboration between procurement and business to define internal needs and category objectives and drive the development of a category action plan. Multiple tools and techniques, such as total cost modeling, make vs. buy assessment, buyer profile assessment, and supply market analysis, are used for this process. Best-in-class procurement organizations effectively leverage such tools and techniques to drive continuous improvements in their categories. The template can be customized by category managers with internal category information, such as spend, suppliers, and subcategory overview. The category manager can also use industry and market insights provided in this template to build a strong supply base understanding. The goal of a category strategy is to create an action plan for effective category management, and this template provides the requisite tools, frameworks, and information to create a robust strategy. Scope All industries and geographies Category in focus: F&A Contents In this category strategy, we provide templates based on a four-step process to assist the creation of a category strategy: Define internal needs: defining category maturity and objectives, creating a buyer profile to gauge current state of the supply base and predict future demand, and total cost modeling Understand the market: building an understanding of the industry and supply base by evaluating market elements such as market trends, key suppliers, major delivery locations, pricing trends, performance benchmarks, and category risks Determine sourcing strategy: deciding in-house versus outsourced model for the category and identifying best practices and value levers to drive category efficiency Create action plan: identifying and prioritizing projects and driving them toward execution

The HR services category consists of processes such as employee benefits, talent management, recruitment, payroll, and learning and development services. Technological advances and an increasing focus on the softer aspects of people management are increasingly transforming the category. This category strategy template is ready to use, offering editable frameworks for internal assessment and detailed industry and market category overviews to assist category managers, procurement professionals, and CPOs in creating an informed category strategy for HR services. The template can be customized by category managers with internal category information, such as spend, suppliers, and subcategory overview. The category manager can also use industry and market insights provided in this template to build a strong supply base understanding. A category strategy’s goal is to create an action plan for effective category management, and this template provides the requisite tools, frameworks, and information to create a robust strategy. Best-in-class procurement organizations effectively leverage such tools and techniques to drive continuous improvements in their categories. Scope All industries and geographies Category in focus: HR services  Contents In this category strategy, we provide templates based on a four-step process to assist the creation of a category strategy: Define internal needs: defining category maturity and objectives, creating a buyer profile to gauge the current state of the supply base and predict future demand, and total cost modeling Understand the market: building an understanding of the industry and supply base by evaluating aspects such as market trends, key suppliers, major delivery locations, pricing trends, performance benchmarks, and category risks Determine sourcing strategy: deciding between an in-house versus outsourced model for the category and identifying best practices and value levers to drive category efficiency Create action plan: identifying and prioritizing projects and driving them toward execution

Application services encompasses multiple services across the traditional application life cycle and DevOps, including application development (build), run, quality assurance, and modernization/transformation services. This category strategy template is ready to use, offering editable frameworks for internal assessment and detailed industry and market category overviews to assist category managers, procurement professionals, and CPOs in creating an informed category strategy for application services. The template can be customized by category managers with internal category information, such as spend, suppliers, and subcategory overview. The category manager can also use industry and market insights provided in this template to build a strong supply base understanding. A category strategy’s goal is to create an action plan for effective category management, and this template provides the requisite tools, frameworks, and information to create a robust strategy. Best-in-class procurement organizations effectively leverage such tools and techniques to drive continuous improvements in their categories. Scope All industries and geographies Category in focus: application services Contents In this category strategy, we provide templates based on a four-step process to assist in the creation of a category strategy: Define internal needs: defining category maturity and objectives, creating a buyer profile to gauge the current state of the supply base and predict future demand, and total cost modeling Understand the market: building an understanding of the industry and supply base by evaluating aspects such as market trends, key suppliers, major delivery locations, pricing trends, performance benchmarks, and category risks Determine sourcing strategy: deciding between an in-house versus outsourced model for the category and identifying best practices and value levers to drive category efficiency Create action plan: identifying and prioritizing projects and driving them toward execution

Contingent workers are becoming an increasing part of the workforce, especially as millennials take up jobs in which they are not directly employed by the company they work for. Contingent Workforce Management (CWM) involves the management of an organization’s contingent/temporary staffing activities on an ongoing basis. This category strategy template is ready to use, offering editable frameworks for internal assessment and detailed industry and market category overviews to assist category managers, procurement professionals, and CPOs in creating an informed category strategy for CWM. The template can be customized by category managers with internal category information, such as spend, suppliers, and subcategory overview. The category manager can also use industry and market insights provided in this template to build a strong supply base understanding. A category strategy’s goal is to create an action plan for effective category management, and this template provides the requisite tools, frameworks, and information to create a robust strategy. Best-in-class procurement organizations effectively leverage such tools and techniques to drive continuous improvements in their categories. Scope All industries and geographies Category in focus: CWM Contents In this category strategy, we provide templates based on a four-step process to assist the creation of a category strategy: Define internal needs: defining category maturity and objectives, creating a buyer profile to gauge the current state of the supply base and predict future demand, and total cost modeling Understand the market: building an understanding of the industry and supply base by evaluating aspects such as market trends, key suppliers, major delivery locations, pricing trends, performance benchmarks, and category risks Determine sourcing strategy: deciding between an in-house versus outsourced model for the category and identifying best practices and value levers to drive category efficiency Create action plan: identifying and prioritizing projects and driving them toward execution

This ready-to-use category strategy template offers editable frameworks for internal assessment and detailed industry and market category overviews to assist category managers, procurement professionals, and CPOs in creating an informed category strategy for Cloud and Infrastructure Services (CIS). CIS comprises the cloud (public/private/hybrid/multi-cloud), data center, security, digital workplace, and network services. These services are commonly outsourced, including public cloud, colocation, network security, threat operations, endpoint management, service desks, end-user device support, SD-WAN, and network automation services. Category managers can customize this template with internal category information, such as spend, suppliers, and subcategory overview. They can also use the industry and market insights provided in this template to build a strong supply base understanding. A category strategy’s goal is to create an action plan for effective category management, and this template provides the requisite tools, frameworks, and information to create a robust strategy. Best-in-class procurement organizations effectively leverage such tools and techniques to drive continuous improvements in their categories. Scope All industries and geographies Category in focus: CIS Contents In this category strategy report, we offer comprehensive templates based on a four-step process to create a category strategy: Define internal needs: define category maturity and objectives, create a buyer profile to gauge the current supply base state and predict future demand, and conduct total cost modeling Understand the market: build industry and supply base understanding by evaluating aspects such as market trends, key suppliers, major delivery locations, pricing trends, performance benchmarks, and category risks Determine the sourcing strategy: decide between an in-house versus outsourced model for the category and identify best practices and value levers to drive category efficiency Create an action plan: identify and prioritize projects and drive them toward execution