A managed services agreement is a contract between a provider of managed services and a client. It creates ties of the service level between the parties and records the primary understanding regarding different aspects of the deal.
The agreement represents different aspects of your engagement, including:
- Response times
- Service-level agreement
- Limitation of liability
- Termination clause
- Clarity of outline of support tiers
- Service escalation process
- Phases of setting priorities
- Labor rates
Below are the things that need to be clearly outlined in your managed services agreement (MSA).
You need to identify the elements of the services covered, including supported IT services and those not supported by your managed services provider (MSP).
You need to ensure that there is clarity on your responsibilities and those of the service provider.
By clearly outlining the services not covered in the agreement, it prevents any likelihood of holding your service provider liable for any incidents not outlined. A clear outline of the services allows your service provider to work for issues outside the agreement.
Terms and Conditions
Identify the provider of managed services and their contact information during and after working hours. The agreement needs to stipulate the pricing, terms of payment, and the duration of the contract. Also, it clearly outlines the date when the contract starts, ends, and when it auto-renews.
Termination of Agreement
The contract between you and your managed services provider outlines the rules of termination, the need for adhering to regulatory requirements, and the owner of the data once the contract ends.
Length of Warranties
The agreement includes the specifications of the hardware used and the information regarding different types of hardware used in implementing a managed services model.
Authorization of the Managed Services Provider
The MSA provides extensive information on the licensing of your provider and SaaS.
The contract specifies the terms and the length of incremental copies and the total number of copies.
Limit of Liability
The MSA outlines your confines on instituting legal proceedings for negligence against your provider. Also, it includes information on risk allocation by your provider.
Aspects of cybersecurity insurance are included in the MSA. It covers the level of coverage for your managed services provider. Also, it outlines aspects covered and not covered in the insurance policy. Your MSP needs to give extensive information on any potential liabilities.
Definitions of Terms
The contract explores the meaning of different terms for all parties. It includes terms that are specific to the entity, providing managed services to your business.
The managed services agreement includes other agreements including the:
- Licensing agreement
- Confidentiality agreement
- Non-disclosure document
- Non-complete document for your provider’s employees
The document considers the contractual obligations of both parties and specifies the responsibilities and rights that can be transferred.
The MSA includes a plan of action of prompt reporting to the authorities in case either party notices prohibited behavior. Also, it emphasizes that you are expected to follow a certain course in notifying the authorities. The list includes the major aspects included in a managed services agreement.
Contact us to help you develop an agreement that is satisfactory to both the parties and facilitates the growth of your business.