Category Manager - IT Software and Services

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Role Overview

The Category Manager, IT Software and Services is responsible for developing and executing strategic sourcing and category management strategies across enterprise technology spend, including software, SaaS, cloud solutions, IT professional services, technology consulting, implementation services, managed services, and other technology-related services.

This role leads the end-to-end sourcing lifecycle, including demand planning, market analysis, competitive sourcing, supplier evaluation, contract negotiation, supplier relationship management, and ongoing cost and performance optimization. The Category Manager will partner closely with IT, Information Security, Privacy, Legal, Finance, and business stakeholders to ensure sourcing strategies support technology roadmaps, business objectives, risk requirements, and financial goals.

The position requires a strategic and commercially focused procurement professional who can manage complex technology agreements, optimize total cost of ownership, mitigate third-party risk, and develop strong relationships with technology leaders and suppliers.

Key Responsibilities

Category Strategy & Planning

• Develop and execute comprehensive category strategies for IT software and technology services.
• Establish multi-year sourcing plans and category roadmaps aligned with IT strategies, budgets, projects, and anticipated renewals.
• Analyze spend, supplier landscape, market conditions, emerging technologies, and industry trends to identify sourcing, consolidation, and cost optimization opportunities.
• Develop strategies to reduce supplier fragmentation and leverage enterprise purchasing power.
• Maintain visibility into demand and upcoming technology initiatives to enable proactive sourcing rather than reactive purchasing.

This strategic orientation is consistent with your existing Category Manager role, which emphasizes category strategy, market analysis, long-term sourcing plans, measurable value, and alignment with organizational objectives.

Strategic Sourcing & Negotiations

• Lead end-to-end sourcing initiatives, including requirements gathering, RFI/RFP development, supplier identification, competitive bidding, evaluation, negotiations, award recommendations, and contracting.
• Lead complex commercial negotiations for software and IT services agreements.
• Negotiate favorable pricing, licensing structures, service levels, renewal terms, termination rights, payment terms, and other key commercial provisions.
• Apply total cost of ownership principles when comparing supplier proposals and commercial models.
• Develop negotiation strategies using market intelligence, competitive benchmarks, supplier leverage, and business requirements.

Your current enterprise software description specifically calls for negotiation of licensing models, pricing structures, renewal terms, usage/access rights, data ownership, audit rights, and termination provisions.

Software & Technology Procurement

Manage procurement activities across technology categories such as:

• SaaS and cloud-based applications
• Enterprise software and licensed applications
• Cloud platforms and infrastructure solutions
• Data and analytics solutions
• Cybersecurity technology
• IT professional services
• Technology consulting
• Software implementation and integration services
• Managed IT services
• Application development and support
• Technical staffing and project-based resources
• Other technology-related services

Contracting & Commercial Management

• Lead commercial development and negotiation of Master Service Agreements (MSAs), Statements of Work (SOWs), Software/SaaS Agreements, Order Forms, Service Level Agreements (SLAs), and related technology agreements.
• Partner with Legal and business stakeholders to establish commercially appropriate contractual terms.
• Evaluate supplier pricing models, license metrics, resource models, rate cards, deliverables, milestones, service levels, and acceptance criteria.
• Establish commercial protections supporting performance accountability and flexibility as business requirements change.
• Proactively manage renewals to reduce unnecessary spend and avoid unfavorable automatic renewal conditions.

Stakeholder Partnership

• Serve as the strategic sourcing partner to IT and technology leadership.
• Partner with stakeholders to understand technology roadmaps, budgets, project pipelines, business requirements, and sourcing priorities.
• Collaborate with Information Security, Privacy, Legal, Finance, and other stakeholders throughout supplier evaluation and contracting.
• Provide procurement recommendations and commercial insights that support supplier selection and business decision-making.
• Facilitate cross-functional sourcing teams and establish clear sourcing timelines, responsibilities, and decision criteria.

Your existing sourcing materials already emphasize partnership with IT, Information Security, Legal, Finance, and business stakeholders, including alignment with technology roadmaps and enterprise architecture requirements.

Supplier & Performance Management

• Develop and maintain strategic relationships with key technology suppliers.
• Conduct supplier business reviews and monitor contractual commitments, service levels, pricing, and overall supplier performance.
• Identify opportunities for supplier consolidation, renegotiation, innovation, and continuous improvement.
• Manage supplier escalations involving commercial or contractual issues.
• Support supplier segmentation and strategic supplier management initiatives.

Risk, Security & Compliance

• Partner with Information Security, Privacy, Legal, and other stakeholders to identify and mitigate third-party technology risk.
• Ensure appropriate review of cybersecurity, data privacy, regulatory, and compliance requirements during sourcing and contracting.
• Evaluate risks related to software licensing, supplier access to company information, data ownership, audit rights, and regulatory obligations.
• Maintain appropriate sourcing and contracting documentation to support procurement governance and audit readiness.

Risk management is already an important component of your current role descriptions, particularly software licensing, data privacy, cybersecurity, regulatory compliance, and third-party risk.

Financial & Value Management

• Identify and deliver measurable cost savings, cost avoidance, demand management, and supplier consolidation opportunities.
• Analyze supplier proposals and pricing structures to identify opportunities to improve commercial value.
• Partner with Finance to validate sourcing benefits and financial impacts.
• Track category spend, sourcing activity, contract renewals, savings, and other applicable procurement metrics.

Minimum Requirement

Degree and typically requires 7+ years of relevant experience.

Education

Bachelor’s degree in Business, Supply Chain Management, Information Systems, Finance, or a related discipline.

Critical Skills

• 5–7 years of procurement, strategic sourcing, or category management experience, with significant experience sourcing enterprise technology.
• Demonstrated experience negotiating complex enterprise software, SaaS, and IT services agreements.
• Strong understanding of software licensing, subscription pricing, technology services contracting, and supplier commercial models.
• Demonstrated ability to lead competitive RFPs and complex supplier negotiations.
• Strong analytical, financial, negotiation, and problem-solving skills.
• Ability to influence and collaborate with senior business and technology stakeholders.
• Strong written and verbal communication skills.
• The 5–7 year experience level is consistent with the Category Manager qualifications in your existing job description.

Preferred

• Master’s degree, MBA, or advanced supply chain/procurement education.
• CPSM, CSCP, CIPS, or similar procurement/supply chain certification.
• Experience sourcing technology within a large, complex or highly regulated organization.
• Familiarity with contract lifecycle management, procurement, spend analytics, and supplier management platforms.

Core Competencies

• IT Category Strategy
• Strategic Sourcing
• Software & SaaS Negotiation
• IT Services Procurement
• Complex Contract Negotiation
• Supplier Relationship Management
• Total Cost of Ownership Analysis
• Financial & Commercial Analysis
• Third-Party Risk Management
• Cybersecurity & Data Privacy Awareness
• Stakeholder & Executive Engagement
• Supplier Performance Management
• Cross-Functional Leadership
• Negotiation & Influencing
• Continuous Improvement

Salary: 109,500.00 - 146,000.00 - 182,500.00 USD Annual with 20% MIP Target comp approx. 130-135K with 20% MIP

P4

We are proud to offer a competitive compensation package at McKesson as part of our Total Rewards. This is determined by several factors, including performance, experience and skills, equity, regular job market evaluations, and geographical markets. The pay range shown below is aligned with McKesson's pay philosophy, and pay will always be compliant with any applicable regulations. In addition to base pay, other compensation, such as an annual bonus or long-term incentive opportunities may be offered. For more information regarding benefits at McKesson, please click here.

Our Base Pay Range for this position

$109,500 - $182,500

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