In the computer chain, the abbreviation “MSA” almost always refers to an agreement of management services. An MSA (which can also be called a managed service contract) is an agreement between a managed service provider (MSP) and a customer. The contract defines the services provided by the MSP, the minimum response time, the payment structure and the protection of liability. Many emerging IT service providers are in the dark, as an MSA is written. Make sure you are not held responsible for losses or damage that are not controlled. The pandemic is a great example of how outside forces outside your control can have a rapid impact on your business and your customers. It is important that your managed service agreement takes these potential changes into account and clearly defines expectations for business relationships in times of crisis, including customer expectations. These terms also define how your MSP is protected. This is especially true when you develop your business from a break/fix model to manageable services. With long-term business relationships in the firing line, there are many expectations to be managed on both sides of the trading table. Contracts and agreements maintain both parts of the relationship honest and set expectations for the future of the relationship. It is customary for managed services agreements to contain in them an ALS or an equivalent contractual language that defines the specifics of the service part of the contract.
A managed services contract provides a framework in which you can organize, define and present your service offering to customers. By defining your offer as part of a manage services agreement, you create a structure that gives MSps a reproducible opportunity to increase their business while increasing profitability. PSMs must state that they are an essential part of their clients‘ business and must be paid on time and in full, unless changes to payment terms have been negotiated in advance. Below is an example of the language of the contract regarding a customer‘s default that can be included in a managerial service agreement: you should also consider your MSA as a potential sales tool. You‘ll notice that the coverage of our MSA model contains a checklist of services and products on offer, which will allow you to enhance the value you provide to a customer before asking them to log on to the dotted line. Before the client even inquires about the agreement, he has a clear understanding of what he or she is getting from the agreement. Below are examples of the language of the contract that can be used in a managed services contract. When developing these clauses, I met with a lawyer to make sure they were the right language for the present and for the future. These clauses or variations of these should be part of a management service agreement. The language of the contract in these clauses is intended to provide adequate coverage to your customers, taking into account situations beyond the control of your MSP while guaranteeing the protection of all parties. If the customer is unable to make payments for purchased services or goods and the default lasts fifteen (15) days, interest is collected on an amount owed 12% per year until it is paid.
In the case of the investigation procedure, in order to collect all the amounts owed from the client, the client must bear the collection costs plus reasonable legal fees. Some MSPs use the term Service Level Agreement instead of Managed Services Agreement when they advertise or refer to their contract with their clients for services.