Custom Managed Services Agreement [Free Template]

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If you plan to start collaborating with an IT Partner and benefit from Managed Services’ agility and efficiency, make sure you base your partnership on a well-prepared Managed Services Agreement.


We prepared an easy to use, comprehensive Managed Services Agreement Template to streamline your process of launching a Managed Services partnership with an IT Partner.
It will help you with all the necessary aspects that should be considered before starting any collaboration in the Managed Services model.
We based our Agreement Template on over 20 years of experience in providing IT services to clients from various industries globally.


You want to make sure that your collaboration with an IT Partner runs smoothly from start to finish and various scenarios are well thought out. This is the goal of the contract, where you should include all responsibilities and rights of both parties.
What’s more, the information about the agreed metrics, scope, formalities, and Managed Services-related definitions must be considered as well in order for the document to be comprehensive and reliable.

Service Level Targets (Service Level Agreements)

Service Level Targets are established KPIs – Key Performance Indicators – that clearly show if the service is delivered as agreed.
They should include metrics related to response time, resolution time, and workaround time, which are crucial efficiency indicators. For example, a Service Level Target may look like this: “95% of Level 1 Incidents within a month shall be addressed in accordance with the Incident severity level.”

Severity Level Definitions

Severity Level Definitions describe the criticality levels of possible incidents, from the ones that have limited impact and do not really affect the use of the software to the ones that require an immediate solution, as they cause significant data loss or even the system to go down.
It is vital to share the understanding of particular levels with your IT Partner to avoid any misunderstanding as to whether an incident is, for example, Level 1 or Level 2. It is important because higher levels are always treated with more restrictive rules and the response and resolution times become much shorter due to the severity of an incident.

Pricing and payment terms

Pricing and payment terms are essential components of any agreement. You should establish the hourly rates or payment schedule, as well as payment deadlines. They define the financial expectations and obligations between both parties, ensuring clarity and fairness of the transaction.
Any penalties coming from missing payments, such as charging interest, suspending work, or other consequences, should also be decided on beforehand.

Compensation for damages

Determine possible additional penalties or discounts caused by missed Service Level Targets and the IT Partner’s failure to provide a quality service.

Project scope

To ensure clarity and prevent any ambiguity, you should agree on the project scope.

It should specify the type and extent of services your IT Partner will provide, including the competencies and responsibilities, service tools (such as ticketing and reporting platforms), and business hours.

It is also vital to have a precise description of supported systems, areas, or products within the project scope. Establish the delivery model, whether it is a retainer agreement, an unlimited bug fixing model, or a dedicated team.

This approach guarantees that there are no grey areas regarding accountability, especially in scenarios where it must be determined if, for example, a supplier is responsible for errors caused by external interference.

Communication paths

Any channels used for communication between you and your IT Partner should be clearly established, especially when they concern escalation and important issues that need to be addressed quickly and efficiently.

Formalities and changes to the agreement

Decide on basic formalities, such as the start and end dates, and a notice period in the event of early termination of the collaboration.
It is also important to have a clear process in case there is a need to amend the contract. Both parties should agree on any changes in writing, so they can legally and seamlessly enter into force.

Consistent understanding of definitions

Make sure that you and your IT Partner are on the same page regarding the definitions in the agreement.
Definitions listed in the first clause of the document, Service Level Targets, and Severity Level Definitions should all be carefully considered and discussed before signing the contract to avoid any misunderstanding or misinterpretation in the future.


Choose your Managed Services Provider (MSP) wisely.

Here are the key factors to consider:

  • their expertise and experience, especially in your industry,
  • their scalability and availability,
  • their services offered in a Managed Services model – make sure that they match your real needs,
  • their attitude towards cybersecurity and compliance,
  • their disaster recovery and backup plans,
  • their attitude towards innovation and proactive approach.

Remember about our free RFP for Managed Services that will help you find an ideal IT Partner effortlessly. It is designed to streamline your selection process and covers all the most important aspects of searching for a Managed Services Provider.


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