Gartner Research

Segmentation of Technology Vendors Is the Foundation for Effective Vendor Management

Published: 16 October 2017

ID: G00340461

Analyst(s): Matt Corsi


Vendor segmentation is the initial step in building a vendor management capability, as it's preliminary to creating a governance structure and prioritizing resources to your vendor portfolio. Sourcing and vendor management leaders should use this framework to identify their critical vendors.

Table Of Contents
  • Key Challenges



  • Step 1: Develop Objective Criteria to Segment Technology Vendors Based on Business Value, Relationship Impact and Spend
  • Step 2: Define the Level of Vendor Management for Each Segmentation Tier to Improve Costs, Mitigate Risk and Improve Performance
  • Step 3: Reassess Your Segmentation Tiers on an Ongoing Basis, and Incorporate the Process Into Your Vendor Onboarding

Case Study

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