Whether this is your first time considering external IT support or not, you may find the lingo and alphabet soup of IT abbreviations confusing.
We can help!
In this article, we’ll explore what a managed services agreement is, what you should expect it to contain, and what it won’t include.
With this information, you’ll know what to expect and can avoid surprises.
At Kelser, we are committed to providing as much information as possible, so that we minimize the unknown for our customers.
What Is A Managed Services Agreement?
Sometimes called a managed services provider (MSP) agreement or managed agreement or an MSP contract, it is a legal document that outlines the services you can expect to receive from your external (or outsourced) IT services provider.
What Should Be Included In A Managed Services Agreement?
Every provider handles things a little bit differently, but the comprehensive services your agreement covers should include:
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Terms
It should include details about the terms of your agreement. Make sure you understand the length of time your contract covers as well as any potential penalties for early termination.
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Services
There should be an accounting of each service included in your contract and the deliverables you can expect.
These services could include technical and advisory services.
For example, your provider may offer your organization the expert advice of a Virtual Chief Information Officer (vCIO), a Technical Alignment Manager (TAM), and a Service Delivery Manager (SDM).
In addition, you may see notes about managed devices, managed network equipment (firewalls, switches, and access points), managed applications and system software (including security tools), business continuity tools (like backups and recovery), and compliance-related services.
There may also be information about proactive monitoring and maintenance services as well as how issues that impact service to your customers will be handled (to minimize the impact on your business).
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Service Level Agreements
Service level agreements (SLAs) spell out what you can expect for response and remediation times.
In other words, the service level agreement will spell out a specific amount of time within which your provider will reach out to let you know a request for help was received and how long they have to fix the issue under the terms of the contract.
Keep in mind there may be different service level agreement terms for different types of services. Understand what you are agreeing to and if you don’t understand, ask questions!
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Service Inclusions
You’ll want to know what specific services are included in your contract. For example, who is responsible for installing software updates? Are printer repairs included?
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Provider Responsibilities
This document should spell out what you can expect from the provider.
It may include information about how service tickets will be handled, availability to provide on-site support if needed, how requests for services that are received after normal business hours will be handled,, and what happens if you need something that doesn’t fall within the terms of your contract.
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Points of Contact
You should receive information about how to contact members of your external IT support team (including a primary contact person, someone you can call to escalate an urgent issue, and how to request service or open tickets).
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Changes
If the contract needs to be altered, how will changes be handled? Is there a change management process that will be followed?
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Pricing & Payment
Expect a listing of the services you are paying for and the quantity of each. You’ll also want to see the payment terms and how fees are calculated.
For example, when customers sign an agreement for managed IT with us, they can rest assured that they know what to expect and will pay the same amount for our services every month.
The only reason the amount will change is if the business grows and additional employees are added to the contract.
(And, in case you are wondering, yes…the cost goes down proportionally when the total number of employees decreases, too.)
Make sure you understand what you will be paying for and whether your costs are fixed or variable.
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Other Terms & Conditions
The agreement may also include additional terms and conditions pertaining to things like liability, warranties & licenses, nondisclosure/confidentiality, and the contract termination conditions and penalties.
What’s Not Included In An IT Managed Services Agreement?
Think of an IT managed services agreement as the terms and fees for ongoing support and maintenance of your devices and infrastructure. Anything beyond those regularly provided services listed in your contract is not covered. Here are a few examples of item that aren’t typically included:
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Infrastructure Pre-Work
Any upfront work required to bring your infrastructure up to the minimum level of support is not included.
This upfront work can vary depending on the complexity and age of your equipment. If your devices and systems have been updated and patched, the work should be minimal. If your devices and systems are nearing end of life and are no longer covered under warranty, the costs will be greater.
Depending on the condition of your current equipment and the number of related security concerns and performance issues, your provider may be able to begin service using existing hardware and help you plan for upgrades as you go. It’s definitely a question worth asking.
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Internet Access
Your managed IT provider will handle the equipment inside your physical office, but bringing internet service from the street to your facility or office space is handled separately via a contract with a local internet service provider.
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Project Work
As your relationship with an external IT provider goes on, you will need to upgrade devices and infrastructure equipment. These costs and services are not part of your agreement. A good provider will give you insight and help you plan and budget for coming refresh cycles to minimize surprises.
Your business may also experience growth that necessitates additional staff, locations, bandwidth or other enhancements. The provider should be able to help you plan, budget, manage, and implement these projects, but they will not be covered as part of your contract.
What’s The Bottom Line?
Now that you have a full understanding of what a managed services agreement should include, you are better prepared to work with an external IT services provider. You’ll know what to look for in your contract and be an informed consumer of services.
You’ll expect to see terms, services, response and remediation expectations, and details about the services that your contract includes. You’ll look for details about what the provider’s responsibilities include, points of contact, how changes to the agreement will be handled, pricing and payment expectations, and more.
You also have a complete understanding of the services that are not included such as infrastructure preparation activities, internet access, and project work.
At this point, you will enter any negotiations with an external IT provider with your eyes wide open.
Our goal is to provide the information you need to be prepared to build a strong relationship with your external IT provider.
While we provide a strong managed IT support services offering, we know that we might not be the best provider for you. Rather than convince you that we are a perfect fit to work together, we want you to have the information you need to make the best choice for your organization.
If you are just beginning to explore external IT support, learn more about your options for IT support.
For people who are already considering providers, here are 10 of the best questions to ask when evaluating IT partners.
If you still have questions or would like to learn more about Kelser’s managed IT support, or just want to talk with a human, click the button below and one of our IT solutions pros will reach out to schedule a 15-minute call to learn more about your business and IT needs to see if we are a good fit to work together.
