What is a managed services agreement template?
A managed services agreement is a contract between a managed service provider (MSP) and a client that outlines the services to be provided on an ongoing basis and the standards to be met. It typically includes sections on the scope of services, service levels or performance metrics, pricing, responsibilities, reporting requirements, confidentiality, liability and termination conditions.
Using Docue’s dynamic managed services agreement template helps ensure that both parties clearly understand their obligations and expectations, covering key aspects of the managed services arrangement.
Is this managed services agreement template just for IT and technology support services?
No, managed services agreements are not exclusive to IT and this managed services agreement template can be used for all types of managed services.
While managed services agreement templates are commonly used in the IT industry to outline services such as IT support, network management and cybersecurity, they are also applicable in other sectors. Managed services agreements can be used in industries like finance, healthcare, human resources, marketing, and more, wherever ongoing service provision is required. These agreements help define the scope of services, service levels, responsibilities, and fees for any ongoing managed services, regardless of the industry.
What are the benefits of using Docue's managed services agreement template?
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To manage risk and protect your business: The managed services agreement includes essential elements such as confidentiality provisions, intellectual property rights, and limitations of liability, which help safeguard both parties and address potential regulatory requirements. It also covers areas such as audit rights, non-solicitation, anti-bribery and data protection obligations.
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To clearly define service expectations: This managed services agreement template prompts you to outline the details of the scope of the services to be provided and the performance standards expected, ensuring both parties have a clear understanding of their roles to enhance consistent service quality.
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To enhance relationship management: The managed services agreement template helps establish a strong foundation for the business relationship, with clear terms on communication, issue resolution, and service levels, cultivating a smoother and more transparent contractual relationship.
This managed services agreement template assumes that the relationship between the parties is B2B, and that the agreement is subject to English law and the English courts.
What are the key terms that this managed services agreement template includes?
Key terms: This managed services agreement template includes the following key provisions:
• Term: The length of the contract and whether it will auto-renew or expire after a set amount of time);
• Scope of services: Details the specific services the service provider will deliver, along with any applicable timeframes or milestones.
• Service levels: Defines the performance metrics and standards that the provider must meet, often including response times and availability requirements.
• Parties' responsibilities: Clarifies the obligations of both the provider and the client, ensuring both parties understand their roles in the provision of the services.
• Fees and payment terms: Outlines the cost of services and the terms of payment, including any recurring fees or charges for additional services.
• Change order process: Outlines how modifications to the service scope are requested, reviewed, and approved, ensuring both parties agree on changes.
• Warranties: Defines the assurances given by both parties in relation to the performance of each party’s obligations.
• Liability: This clarifies each party’s liability and responsibilities each party to the other in case of breaches or failures in the agreement. For more information about liability clauses, check out this blog.
• IPR and IPR indemnities (if applicable): Specifies ownership and usage rights for intellectual property created or used, along with protections against infringement claims.
• Termination: Details the conditions and processes for ending the agreement, including notice periods and any associated penalties.
• Non-solicitation clause: Prevents either party from hiring or soliciting the other's employees or clients for a set time after the agreement ends.
• Governing law and jurisdiction: Specifies which country's laws apply to the agreement and where any legal disputes will be handled.
What's the difference between a managed services agreement template and a master services agreement?
A master services agreement essentially serves as a framework between a supplier and client for all future contracts between the parties, assuming there will be multiple transactions. It's an agreement that allows a supplier and a client to engage on multiple projects that will be signed at the outset of the relationship, and only a statement of work will be required for each new project.
On the other hand, a managed service agreement is a more targeted agreement that specifically addresses the provision of managed services. It will typically have a narrower scope and will finalise the contractual terms relating to the services provided by the supplier in one document (rather than having multiple SOWs after signing the master services agreement.
You can find our statement of work template here. You can also find out more about how these two templates work together harmoniously to create a more streamlined contract process in this guide.
When should a services agreement be used instead of a managed services agreement template:
If you're considering entering into a basic business relationship for a one-off transaction with another company that does not consist of ongoing or support services, then a services agreement may be a more suitable choice than using this managed services agreement template.
A services agreement is a simpler, more concise contract that defines the terms and conditions for a specific project or service. This template is ideal when you don't anticipate an ongoing, long-term relationship with the other party and want to keep the agreement focused on a single transaction that does not involve support services. You can find our services agreement template here.
Docue gives you options to tailor this managed services agreement template to meet your business needs
Favourable terms: Your contracts are your company's legal armour, protecting your most important assets, such as your intellectual property. Without it, your business may be exposed to liability. For this reason, it's always best to get your contracts in writing with terms that benefit you. This managed services agreement template contains alternate clauses depending on whether you are the service provider (known as the supplier) or the customer.
Customise our templates to suit your business: Our templates are fully customisable. All you need to do is answer a series of questions to create your own managed services agreement that is tailored to your business. You can easily select different options throughout the template to cater to the circumstances of your contractual relationship.
Strengthen your business relationships: A well-drafted managed services agreement template can enhance supplier/client relationships by establishing clear expectations, roles, and responsibilities. This clarity reduces misunderstandings and future disputes while building trust. This master services agreement template also sets performance standards and quality metrics, ensuring the supplier delivers as promised, which boosts the client's confidence in the supplier's ability to provide the services as expected.
For more guidance on how to use your contracts to strengthen business relationships, check out this article.
Why use Docue?
Simple: Docue is easy to use and can help you create a high-quality managed services agreement template without the typical hefty legal bill. Our template bank of 150+ lawyer-drafted templates covers a wide range of business scenarios to suit your needs.
Safe: Once you have created a contract that is tailored to your business needs, you can send the contract to each of the parties for e-signing. After the contract is signed, you can store the agreement in Docue’s storage vault, Docue Drive, to ensure you always have quick and easy access to your contracts in one place.
Affordable: Our pricing is cost-effective and transparent, with plans that are designed to suit your business.
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