What You Need to Know About Managed IT Services Provider Agreements

What is a managed services provider agreement (MSPA)? What’s included in a managed services provider agreement? What’s not covered in my MSPA? Why does a managed IT services provider require an MSPA? Am I locked into my contract?

If you're like many small and medium-sized businesses (SMBs), you may be struggling to understand what makes up a managed IT services contract. You may also have concerns about identifying possible hidden costs associated with external IT support.  

After reading this article, you will understand the key components of a managed IT services agreement and why it is crucial to establishing a solid foundation for a strong partnership with your managed IT services provider (MSP).

What Is A Managed Services Provider Agreement?

A managed services provider agreement (MSPA), or an MSP agreement, is a legal contract between a client and a managed IT services provider that spells out the service levels and deliverables you can expect. Put simply, it lets you know what you’re getting for your money.

Basic components of an MSPA:

• Automated patching (including laptops, desktops, and mobile devices)
• Managed network equipment—including servers, firewalls, switches, and access points
• Managed apps and software (including antivirus and anti-malware)
• Configuration, patching, and management of the operating system
• Virus remediation
• Configuration and management of Microsoft 365/Microsoft Office suite
• Remote monitoring
• Printer setup configuration and troubleshooting (hardware issues not covered)
• Onsite support
• Remote support
• 24/7 emergency support

The agreement will specify the covered period of the contract, along with information about possible penalties for early termination, and the parameters for ending the agreement.

While your MSPA should list a point of contact within the MSP, at Kelser, we also provide a dedicated team for additional support—depending on your level of service—including vCIO support (virtual chief information officer), a technical alignment manager (TAM), and a service delivery manager (SDM).

This partner-level IT support team ensures that we stay on top of taking care of your technology so that you can focus on your business.

Within your MSPA you will also find information about your service level agreement, or SLA. This section of the contract spells out the exact services or technologies you will be getting from the provider, and what you can expect for response and resolution times to remediate any issues.

This means that the provider will notify you when it has received your service request and will give you an estimate for how long it will take to fix each problem. The SLA is non-negotiable.

Your MSPA will also explain how the provider will handle any services that might temporarily disrupt your operations or impact your customers to minimize the impact on your business.

Keep in mind that there are services that fall outside the scope of an MSPA, such as internet service, project work, and any preliminary work needed to be done to ensure your equipment and IT systems are updated and compatible.

You should discuss with the provider any specific IT needs or issues your business is having that are outside the boundaries of the MSPA before you sign the agreement to find out about add-on services and pricing.

The contract also details escalation procedures for more complex issues and includes steps for client-initiated change orders like adding or removing employees or equipment from the contract.

Does My Provider's Service Performance Match My Contract?

Your MSPA should outline the metrics for measuring how the provider is doing in holding up its end of the contract. The MSP can then present its performance results at a quarterly business review (QBR) meeting with the client.

The QBR report tracks the total number of tickets the provider received from the client during the most recent quarter, response times, remedies used to fix each ticketed item, and length of time needed to resolve each issue.

At Kelser, we also conduct regular, on-site TAM reviews to make sure all your IT systems and equipment are running smoothly.

The quarterly business review is a good time for clients to communicate any concerns they may be having with service issues. Open and regular communication between parties is critical to a successful business relationship.

The MSPA should set realistic expectations that are mutually agreed upon between you and the provider. It should also be in line with your overall business and IT goals.

A separate document, called a master services agreement, or MSA, is a formal contract that provides the legal framework for the MSPA.

Payments and fee structure, possible penalties for nonpayment, and conditions for early termination are included in the MSA, along with additional terms and conditions such as insurance, liability, warranties & licenses, nondisclosure/confidentiality, and third-party services.

Negotiating An MSPA: What’s The Bottom Line?

After reading this article, you now know what you should look for in a managed IT services provider agreement and why it’s important when signing on with an MSP.

With this information, you’ll be able to sit down at the negotiating table with your MSP knowing what is and is not included in the contract and what the nonnegotiable parts of the contract are.

By hashing out sticking points and concerns from the beginning, you minimize misunderstandings and avoid unmet expectations and disputes. A thorough and well-crafted MSPA can go a long way in fostering a lasting partnership that is mutually beneficial to you and your managed IT services provider.

While we provide a suite of advanced IT services and solutions, we know that we may not be right for your business. So, we won’t try to convince you that we’re the best fit for your business.

That’s why we provide you with articles like this so that you can make informed decisions on technology solutions that align with your immediate and long-term business and IT objectives.

Whether you’ve outgrown the capabilities of your in-house IT staff or you’re searching for an external managed IT company for the first time, it’s important for you to do your research ahead of time so that you’re prepared to tackle the challenges ahead.

If you’ve just started exploring external IT services, learn more about the different types of IT support.

Perhaps you’ve decided that managed IT support is the right choice for your business, but don’t know where to begin. Find out how to evaluate potential MSP partners.

Uncertain if you should switch managed IT providers? Learn the steps you should take to help you decide if it’s ultimately time to switch providers.

Curious about how much comprehensive, managed IT support would cost you? Use the Kelser pricing calculator to get a quick, accurate estimate for your business.

If you still have questions, would like to learn more about Kelser’s managed IT support, or would prefer to talk to a human, click the button and one of our IT experts will promptly reach out to schedule a brief call to learn more about your business and IT needs to see if we might be a good fit to work together.