What is a managed services contract?

If you are a service-based business, the likelihood is that you will have come across (and regularly used) Managed Service Contracts—but they're not necessary for every business. There are some industries that don't use them at all! So, for those who don't know, what is a Managed Services Contract?

Author: Euan Aitken | Last Updated: 14/12/2021

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What is a managed services contract?

What is a Managed Services Contract?

A Managed Services Contract (or Managed Services Agreement) is a written agreement between a service-based business and their client which details the level of service the supplier will deliver, setting the precedent for the responsibilities of both parties going forward. These documents are important as they often contain the terms and conditions associated with the service and these terms will govern the related transactions that follow.

If your business provides more than just physical products, it is likely you will benefit from using these documents; this can include the management of equipment, materials, personnel, software and/or telecom services. For example, if your business sells air conditioning units, you could offer a Managed Services Contract for the servicing, management and extra support for those units if they were to break or become damaged.

Most importantly, a Managed Services Contract offers physical evidence of protection on both sides of the exchange.

What should a Managed Services Contract include?

As is the case for most business documents, certain details and pieces of information must be included if you want the document to be legally binding. With regard to Managed Service Contracts, these details include (but are not limited to):

  • The services of the Managed Services Provider (MSP)
  • The minimum response time for the MSP
  • Any equipment, software or appliances to be provided
  • The MSP's hours of availability
  • Liability protection for the MSP
  • The length of the agreed contract
  • Associated fees and payment schedule
  • Termination/Exit clause

How we can help

When you're with Zigaflow, managing all your contracts is quick and convenient. We provide one centralised location to handle a wide range of contractual documents with intuitive functionality designed to minimise any administrative processes. With this module, you will have the ability to create routine site visits, recurring invoices, scheduled tasks and the relevant correspondence for each specific contract. If your business uses e-signatures to approve these documents, you can request these quickly too, all whilst still inside the Zigaflow system by using the integrated email function.

Euan Aitken

Euan Aitken

Sales & Marketing Director

Having started his journey with Zigaflow as a customer who took a keen interest in what the software could become, Euan joined us to lead our Sales & Marketing. Euan loves all things Business, Sales & Tech.

More Posts | View LinkedIn profile

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