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ServiceNow EcosystemPartnersU.S. 2021A research reportcomparing providerstrengths, challengesand competitivedifferentiatorsQuadrantReportCustomized report courtesy of:April 2021

ISG Provider Lens Quadrant Report April 2021Section NameAbout this ReportInformation Services Group Inc. is solely responsible for the content of this report. Un-ISG Provider Lens delivers leading-edge and actionable research studies, reportsless otherwise cited, all content, including illustrations, research, conclusions, assertionsand consulting services focused on technology and service providers’ strengths andand positions contained in this report were developed by, and are the sole property ofweaknesses and how they are positioned relative to their peers in the market. TheseInformation Services Group Inc.reports provide influential insights accessed by our large pool of advisors who areThe research and analysis presented in this report includes research from the ISGProvider Lens program, ongoing ISG Research programs, interviews with ISG advisors,briefings with services providers and analysis of publicly available market informationfrom multiple sources. The data collected for this report represents information thatISG believes to be current as of April 2021, for providers who actively participated asactively advising outsourcing deals as well as large numbers of ISG enterprise clientswho are potential outsourcers.For more information about our studies, please email [email protected],call 49 (0) 561-50697537, or visit ISG Provider Lens under ISG Provider Lens .well as for providers who did not. ISG recognizes that many mergers and acquisitionshave taken place since that time, but those changes are not reflected in this report.All revenue references are in U.S. dollars ( US) unless noted.The lead author for this report is Lutz Peichert. The editor is Ambrosia Sabrina. Theresearch analyst is Arjun Das and the data analyst is Vijayakumar Goud. The Qualityand Consistency Advisors are Yadu Singh, Bill Huber, Dave Goodman, Julian Bethke, andBrandon Provost.ISG Research provides subscription research, advisory consulting and executiveevent services focused on market trends and disruptive technologies driving changein business computing. ISG Research delivers guidance that helps businessesaccelerate growth and create more value.For more information about ISG Research subscriptions, please [email protected], call 49 (0) 561-50697537 or visit research.isg-one.com.2 2021 Information Services Group, Inc. All Rights Reserved.

1Executive Summary5Introduction15ServiceNow Consulting Services19ServiceNow Implementation & Integration Services23ServiceNow Managed Services Providers27Methodology 2021 Information Services Group, Inc. All rights reserved.Reproduction of this publication in any form without priorpermission is strictly prohibited. Information contained in thisreport is based on the best available and reliable resources.Opinions expressed in this report reflect ISG’s judgment at thetime of this report and are subject to change without notice.ISG has no liability for omissions, errors or completeness ofinformation in this report. ISG Research and ISG Provider Lens are trademarks of Information Services Group, Inc.

ISG Provider Lens Quadrant Report April 2021EXECUTIVE SUMMARYSection NameExecutive SummaryERP For CIOSServiceNow has established itself as the market leader, providing the greatest possibleof software companies that were leaders in their specialist areas or were preparing to takeautomation. Most clients want to free process execution from manual requirementsup leadership positions.through the use various technologies. They don’t just seek support for individual manualtasks with an electronic workflow, but also want to integrate and harmonize their entireprocess landscape. While addressing this challenge, ServiceNow became a leader in thismarket, achieving total sales of more than US 4.3 billion in 2020, with more than 90 percentcoming from the licensing business. ISG estimates that the total market revenue generatedis more than US 12 billion. The company supports more than 6,900 customers worldwide,of which almost 1,100 have an annual contract value (ACV) of more than US 1 million. It hasmore than 13,000 employees who ensure a satisfied customer base. Roughly 99 percent ofall contracts are currently being renewed.Developed as a software suite in a platform-as-a-service model, ServiceNow was originallypositioned as a kind of an enterprise resource planning (ERP) suite for CIOs. In additionto a user-friendly interface and an easy-to-use workflow engine, it has several modulesthat worked as a case management system to support the full information technologyinfrastructure library (ITIL)-based process flows. While extensively using new technologies,ServiceNow continuously increased the degree of process automation. Financial evaluationsand risk management were put in place to control the corporate rules via a uniformdatabase. The rapid provision of new functionalities was driven by the targeted acquisitionToday, increasing number of decision makers in enterprises are speculating whether anagile workflow platform is the better solution than a rigid ERP system when it comes toestablishing automated incident processing in companies. A solution like ServiceNow isbecoming increasingly attractive for those enterprises where the realization has dawnedupon decision makers that digitization and process automation are conjoint.Service management has established itself in many companies as a philosophy rather thana single, IT-limited discipline. Experienced companies have realized that the basic elementsof service management such as clear requirements management, the development andprovision of a catalog of services based on defined requirements, structured changemanagement or clear performance-based compensation as well as the comprehensivemanagement of the necessary internal and external suppliers, not only improve theefficiency of their own corporate but also the loyalty of customers. These are viewed byenterprises as a necessary criterion for competitive differentiation.Due to the complexity and variety of requirements of comprehensive servicemanagement, a key to success for ServiceNow is the large established network of differentpartner companies. While there are significant differences in the requirement profilesbetween individual customers, industry-specific requirements should be considered.1 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report AprilJuni 20182021Executive SummaryFlexibility and expandability is a major challenge which ServiceNow addresses through thefunctional adaptations and industry-specific solutions are either provided by partners orconstantly growing partner ecosystem.docked to the system via integrators. Special modules for dedicated processes that affectServiceNow’s approach is relatively simple; it involves the provision of a workflow platformthat operates as a combination of a system of records and a system of engagement. Whileareas which are decisive for the success of the solution are developed in-house and areoffered as a supplement to the platform.the platform can easily adapt to customer needs and expand from a functionality point, itWhile considering the functional diversity and possible fields of application of a workflowcan connect every back-end system that is required for the automation of process flowsplatform such as ServiceNow, it quickly becomes clear that everything that happens in avia interfaces. Due to the complexity of such tasks, partner companies are required to becompany can be mapped in this system. Almost all tasks are regulated in processes orable to cope with these requirements. While constantly growing, as of today, more thanprocedures that are by no means limited to the company. On the contrary, these processes1,300 companies worldwide have a formal partnership with ServiceNow and, in additionare part of every B2B or B2C connection. This procedure is known as case management,to services, also provide functional extensions that are made available as a solution inand the flexibility to be able to map every case is a key strength of ServiceNow.an app store. More than 470 of these apps are available for the two current versions ofThe Servicenow Partner EcosystemServiceNow alone, Paris and Quebec. To support the broadest possible range of processes,there are currently more than 525 ready-made integration solutions for other productsServiceNow distinguishes between four different types of partners, depending on the typethat are by no means only developed for the IT environment. In addition to solutions forof service offered to the customer. The partner types are:corporate processes such as human resources or customer service, integration solutions Service partnerscorporate customers in the B2B or B2C environment to access order status or invoices via Service provider partners that offer managed servicesa portal. According to the motto of Fred Luddy, the founder of ServiceNow, “When I started Technology partners that develop applications or develop integrators Sales Partnersalready enable access or management of data in ERP solutions; for example, to enableServiceNow in 2004, my vision was to build a cloud-based platform that would enable regularpeople to route work effectively through the enterprise."ServiceNow pursues a clear strategy in the continuing development of its solution. Furtherdevelopments of the platform as well as basic functionalities are developed in-house,In addition, companies can be certified as training partners.Numerous certifications are possible for the individual function modules and the technicaland organizational activities required here for the introduction, adaptation, and operation2 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021ExecutiveSectionSummaryNameof the solution. In addition to the different types of partners, companies can be certified asServiceNow reviews the efforts and achievement of goals of the partners annually and thustraining partners, and there is a special certification for companies that operate in the publicensures that their respective reported status also corresponds to the current necessarysector.knowledge and required delivery quality. Together with the quality indicator publishedServiceNow currently differentiates its partners based on the following classifications: Specialist Premier Elite Global EliteWith the exception of the “specialist” status, the grouping into various partner categoriesis based on the commitment of the companies to support the qualitative and quantitativesuccess of ServiceNow. In addition to a wide variety of quality parameters such as the typeand number of certifications through participation in training classes, evaluation of customersatisfaction and practical experience with the respective modules, commercial key figuressuch as sales and growth also come into play. The respective partner status then resultsfrom this differentiated and complex set of figures. Due to the relatively high entry barriersand precise control by ServiceNow, there are currently six companies in the premiumsegment of “Global Elite Partner”: Accenture, Deloitte, DXC Technology, Ernest & Young, IBMand KPMG. These companies are committed to targeting more than US 1 billion in annualsales and, more importantly, use the solution internally.on the ServiceNow partner site, the partner status is a good indicator of the quality of theservices offered by the respective company.Finding The Right Partner Means PlanningComprehensivelyWhen selecting partners, user companies should not disregard an important aspect: Due tothe constantly growing functionality and the ever-increasing attractiveness of the technicalsolution even outside the IT organization, ServiceNow is no longer the only decisivefactor for the successful implementation of such a comprehensive system. In additionto specific circumstances of an industry in which the user operates, an understanding ofthe integration needs and capabilities of ServiceNow with other software architecturesis of growing importance, especially when planning a broader implementation. In thiscontext, it is also important to understand the core processes, personnel and any culturalcircumstances as well as the adaptability of a company to change and take all of these intoaccount when planning the new environment.While not only looking at the purely technical development of ServiceNow but also at itsdevelopment in terms of appointments to top positions, the strategy is clear. With BillMcDermott as CEO, ServiceNow is to be established as an information hub and automationsolution for all corporate processes and thus take its place among the ranks of the industrygiants for enterprise applications such as SAP, Salesforce and Oracle.3 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report AprilJuni 20182021Executive SummaryAgainst this background, ISG has added a category of service providers to the ServiceNowpartner ecosystem in this study, adding them to the “plan” area of the classical “planbuild-run” approach. Due to its capabilities, ServiceNow is to be seen as the cornerstoneof a company's digitization strategy. Thus, a deep integration of these solution into thedigitization strategies is necessary to not only justify the high investments, but also to beable to leverage their full potential. If this step is neglected or simply ignored, companiesare threatened with the same misfortune that many have already experienced with theintroduction of ERP systems. This group of consulting companies includes vendors thatcan accompany users in digital transformation by understanding ServiceNow as an integralpart of the digital strategy and know how to profitably leverage the potential of the solutionbeyond the confines of IT.In addition to these more strategic planning partners, companies that specialize in theimplementation and integration of ServiceNow are evaluated, followed by providers thatoffer services around the operation of an implemented solution. In addition to the purelytechnical capabilities, the understanding of the providers in connection with the principles ofservice management and in the development and operation of process-oriented, industryspecific workflows is evaluated in all areas.4 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionEinleitungMarket OverviewSimplified illustrationThe ServiceNow Ecosystem Partners 2021 study examines the extensive global, yetServiceNow Ecosystem Partners 2021complex partner network for one of the leading software solutions for workflow-enabled service management. The high acceptance of ServiceNow product offerings inthe user community has ensured exponential growth. In order to take full advantageServiceNow Consulting Servicesof the broad functionality, from process (re-)design to software implementation,integration with application management services and training, appropriate profes-ServiceNow Implementation and Integration Servicessional services are required. Various offerings and certification levels show the focusof the different partner companies; they range from support over the entire lifecycleServiceNow Managed Services Providersto very focused services for highly specific tasks.Source: ISG 20215 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionDefinition (cont.)Scope Of The ReportThe ISG Provider Lens study offers IT decision makers: A presentation of the strengths and weaknesses of the relevant providers Differentiated positioning of suppliers on the basis of competitive strength andportfolio attractiveness View of multiple markets, including the U.S., Germany, and BrazilThe study thus provides an essential decision-making basis for positioning, relationship, andgo-to-market considerations. ISG Advisors and enterprise clients also use information fromThe study "ISG Provider Lens ServiceNow Ecosystem Partners 2021" analyzes theservices and offerings of ServiceNow partners in the USA, Brazil and Germany inselected segments. Based on the analysis results, the service providers operating inthe defined segments can be assessed with regard to the strength of their portfolioand their competitiveness in the market.This ISG Provider Lens study is based on the lifecycle of a ServiceNow-basedworkflow solution and has been divided into the following three segments: ServiceNow Consulting Services — necessary prior to the implementation ofa systemthese reports to evaluate their current and potential vendor relationships. ServiceNow Implementation & Integration Services — required for theimplementation of a solution ServiceNow Managed Services — guarantee the smooth operation of asolution after it has been introduced6 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionDefinition (cont.)Servicenow Consulting ServicesThis segment examines providers of consulting services that help clients prepare and assessment methodologies are key in understanding clients’ maturity level andKnowledge of workflows and processes in the enterprise services supported by ServiceNowfor the deployment of workflow-driven service management. Reference models Certifications of standard bodieshave knowledge on current and future available technical solutions. Consultants Experience with the principles of organizational changeare positioned differently when it comes to helping clients understand theServicenow Implementation & Integration Servicestheir biggest challenges. However, for a better differentiation, partners must alsotransformation projects needed to leverage the investments in ServiceNow. Themigration path required for this must be shown accordingly.This segment analyzes providers with a strong specialization in ServiceNow implementation.The main evaluation criteria for this segment are:In most companies, ServiceNow solutions are not operated in isolation; therefore, knowledge Use of reference models and templates Experience with broader workflow and service management design Skills in the assessment of long-term technology developments Expertise regarding ServiceNow capabilities and other available tools for broaderenterprise service managementof the integration with different software tools is a decisive differentiator. With theirexperience, service providers are expected to make installation and integration as smoothas possible. At the same time, they should also ensure the maintainability of the installedsolution.The main evaluation criteria for this segment are: Broad technical experience with the tools offered7 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionDefinition (cont.) Use of predefined solutions, accelerators and templates Experience with emerging technologies such as machine learning (ML), naturallanguage processing (NLP) and artificial intelligence (AI) in conjunction withcognitive computing Experience with system, data and process integration Knowledge regarding the specifics of enterprise shared services Approach to ensuring the ease of maintenance of the installationsthe workflows to be supported, service providers need to address factors such as globalcoverage and cross-organizational usage. They are challenged not only to support a highlysophisticated and integrated application landscape, but also to demonstrate how they workin a multivendor environment or ensure integration.The main evaluation criteria for this segment are: Experience supporting ServiceNow's Now platform, workfl