Managed Services Agreement

Managed services agreements differ from one-off service agreements because the relationship is ongoing: the supplier operates something on a continuous basis, often with embedded technology, often touching the customer's data and systems.

What managed services agreements need to address

The drafting points that matter most are: scope and change control (because the service will evolve); service levels (because performance is measurable and matters); data protection (because the supplier is typically a processor); security and audit; exit and transition assistance (because changing supplier is operationally significant).

A good MSA gives both parties clarity on what is being delivered, what good performance looks like, and what happens when the relationship ends. It is suitable for IT services, BPO, and other ongoing service relationships.

Example: a typical scope and fixed fee

For a two-party managed services relationship, the typical scope looks like this.

What's included

• A consultation to understand the services and your operational requirements
• Drafting of a managed services agreement covering scope, service levels, change control, data protection, security, audit, charges, term, termination, and exit assistance
• One round of revisions based on your feedback
• Final version ready to use

What's outside this scope

• Negotiation with the other party beyond the scope described above
• Sector-specific regulatory provisions (e.g. financial services, healthcare)
• Tax advice

Fixed fee: £650, no VAT.

How I will approach your matter

Once you have instructed me, I will arrange a consultation to understand the services and your operational requirements before drafting. The MSA will be calibrated to the relationship. Service levels that are achievable, change control that is workable, and exit provisions that recognise the operational significance of changing suppliers.