Managed services providers (MSPs) should be trusted technology partners. Your managed services contract is the key to the level of support and expertise you have access to, so understanding that contract is essential.

A managed services contract should clearly document what technology and services are covered, identify roles and responsibilities, define prerequisites for the level of service offered, establish your current environment and provide a strategy for growth.

managed services contract

What to Look for in a Managed Services Contract

The contract should clearly represent the service-level agreement (SLA), response times, termination and limitation of liability clause, and a definition of the service desk escalation protocols. Here are the items you should look for before signing with an MSP. If you have any questions regarding these issues, be sure to clarify before signing any agreement.

  1. Client Information: The client and the primary contact should be clearly identified, along with methods of contact both during and after business hours.
  2. Fees for Service: The price, payment terms and the length of the contract must be clearly specified. A client should be sure to understand their termination rights, how the contract renews, and if and when their fees may be raised.
  3. Included Services: The client should understand what services covered – and which are not.  This should be device specific, operating system specific, and user specific. The time to find out that your outdated yet essential server is not covered is not during an emergency.  Clients looking to stay within budget monthly may find themselves in trouble if there is an incident. Be sure everything essential to the organization is included.
  4. Licensing Agreements: Be sure to understand how your hardware and software licenses are purchased, managed and owned.  
  5. Termination Clauses: A client needs to understand specific rules of termination and who owns the data and licensing in the event of a termination. This may avoid confusion down the road. Keep in mind also that the MSP holds a right of termination as well if a client is not performing their roles and responsibilities as outlined in the managed services contract. Liability if something goes wrong will come back to who was properly executing the agreement, and who was not.
  6. Backup Protocols: Clients should clarify the frequency and method of backups, storage and legacy, as well as number of copies. Should your data need to be retrieved, how long will it take, and how will the recovery take place?
  7. Limitations on Liability: Understand the allocation of risk, and the limits to liability. If you do not feel that you are protected sufficiently, address with the MSP. Your SLA can typically be adjusted to ease your fear of data loss or cyber threat. You will also want to ask about assignment clauses – what parts of the service are contracted to other entities, and what is their liability? 
  8. Insurance Against Cyber Threat: Clients should maintain their own business insurance to cover loss from cybercrime, but should also understand the level of protection they can expect from the MSP.  This is a good time to identify any gaps in coverage, and address vulnerabilities for your best protection.
  9. Confidentiality: Because most MSPs will work with third parties and may necessarily need to share information, understanding those relationships is crucial. MSPs may also be protecting the data of other organizations you would consider a competitor. Confidentiality agreements across all parties is the best way to protect against disclosure, malicious or unintentional.. What protections do you have? 
  10. Clarify Terms: Read through your managed services contract while meeting with the MSP. Ask for clarification as to any terms, definitions, or clauses which you do not understand. Your prospective MSP should have no problem working with you until you understand and are comfortable.

Trusting a managed services provider with your company’s information may seem daunting, but it is most often a positive step towards productivity and security. Alliance IT is here to answer any questions you may have, so that you can do what is best for your organization.