If you are exploring your options for outsourcing some or all of your IT functions to an external partner, you are likely encountering a barrage of acronyms.
In this article, I’ll explain everything you need to know about MSAs from an IT perspective.
We like to eliminate the element of surprise in everything we do. Whether we're fixing your network, exploring device options to meet your needs, explaining a proposed project, or just filling you in on a routine maintenance activity, we find that working together to understand and communicate expectations is key.
After reading this article, you’ll understand what an MSA is, how an IT MSA differs from other MSAs, and what to look for in your MSA. You’ll be well on your way to negotiating a smart contract with an external IT provider from a position of knowledge.
What Is An MSA In IT?
As in other industries, an MSA in IT refers to a Master Services Agreement. This legal document covers the overall rules of engagement between an IT provider and a customer.
No matter what project is being worked on, the overarching MSA will provide the overall direction for all activities. It will define things including pricing and payment details (like terms and procedures), confidentiality, and liability.
The benefit of an MSA is that it makes it unnecessary to draft and execute an entirely new contract for each new project. Without an MSA, every project would need a separate contract, so the MSA saves time and effort.
(A quick side note: Occasionally, MSA may refer to a managed services agreement. These documents usually include all the information in a master services agreement plus details about service, specific personnel or expertise, and pricing. They also may require commitment to a certain amount of work during a finite period of time.)
How Is An IT MSA Different From Other MSAs?
The only difference between an IT MSA and other MSAs is the information included. With an IT MSA, the focus is on the technology services customers will receive and the terms associated with those services.
What Should My IT MSA Include?
While each provider puts their own spin on things, your MSA is the legal documentation that governs your overall relationship with your provider. Here are some of the things your MSA should include:
-
Scope Of Services
While the specifics of the services covered are usually described in individual statements of work (SOW), the MSA is the overarching legal document that defines your relationship with an outside IT provider. It will likely include language that identifies any circumstances in which the SOW will supersede it.
-
General Requirements
The overall rules of engagement often define things like minimum licensing and hardware/software requirements, maintenance and update policies, third-party support, insurance for provider-supplied hardware, and expectations for following the provider’s maintenance and administration advice.
This section may also include scheduling expectations and language that defines the people at your business who are authorized to engage in contract discussions.
-
Payment Details
The MSA also details the fees, payment schedule, and nonpayment information.
-
Access Requirements
This document also defines the type of access the provider will need to properly monitor and maintain your infrastructure.
-
Service Level Agreements
Service level agreements (SLAs) spell out the specific expectations for response and remediation times.
After you submit a request for service how long does the provider have to respond? Within what amount of time can you expect your issue to be resolved? There may be different service level agreement terms for different types of services.
Related article: What Is A Normal IT Response & Service Time? 5 Things To Know About SLAs
-
Other Terms & Conditions
The agreement may also include additional terms and conditions pertaining to things like liability, warranties, nondisclosure/confidentiality, and the contract termination conditions and penalties.
-
Signature Page
To be legally binding, the MSA must include signatures from authorized representatives of each organization.
What’s The Bottom Line?
When working with an outside IT partner, it’s important to know what to expect. Whether it’s your first time signing an agreement or your 100th, don’t take for granted that you know what you are signing.
We’ve all heard the horror stories of people signing agreements that don’t include critical pieces of information or that limit their ability to change things.
After reading this article, you know what to look for in your MSA, putting you ahead of the curve when reviewing your agreements. You know it should include the scope of services, general requirements, payment, access, service information, other terms and conditions, and a signature page.
We know that as a business leader, you know how to run a successful organization. We want you to have the same level of confidence and understanding when it comes to making important technology decisions. We publish articles like this, so that you have all the information you need to be an informed consumer of IT solutions.
The bottom line is that you should understand what you are agreeing to and, if you don’t, ask questions! If you pay attention to the details and ask questions, you’ll be in good shape.
If you are just beginning your journey to identify an external IT provider, we encourage you to explore several options to ensure that you get a partner that is the right fit for your organization. Here’s an article that will help you learn your options for external IT support.
Already decided that an external partnership is right for you? Look for these 10 qualities when choosing an IT partner.
If you find yourself overwhelmed at any point in the process and just want to chat with a real person, click the link below and one of our IT solutions experts will reach out to schedule a 15-minute call to learn about your business, your goals, and your technology pain points.
