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A Managed Services Agreement is a contract between a technology service provider and a client. In 2025, these agreements have evolved to cover a broader range of services and enhanced cybersecurity measures, ensuring that your business remains safeguarded against emerging digital threats.
For example, an online fashion business might engage an offsite IT company through a subscription service to manage its IT needs – from protecting the business’s data and hosting services to providing routine maintenance and IT support over a fixed period. It’s all about streamlining your operations while staying compliant with the latest industry standards, which you can read more about in our Online Business Privacy Guide.
This is what you call a ‘Managed Service’: where a specialist takes care of one critical aspect of your business through a suite of integrated services. To ensure that everything runs smoothly and that both parties know exactly what to expect, you’ll need a robust Managed Services Agreement.
Why Do I Need A Managed Services Agreement?
For any business operating online, having a high-performing website or app and protecting your customers’ confidential information is absolutely vital. With data breaches and cyber threats on the rise, a well-drafted agreement is more important than ever – setting out the precise obligations, service levels, and accountability measures for both the provider and the client. For further insights into protecting your information, you might also explore our Privacy Policy services.
Whether you are approaching service providers or offering your own managed services, it’s crucial to establish clear, mutual expectations from the outset. A Managed Services Agreement helps ensure that the relationship runs smoothly, mitigating risks and saving you time and potential headaches later on.
What’s Included In A Managed Services Agreement?
We draft Managed Services Agreements tailored to the unique needs of your business. Some of the key clauses typically address:
- Service levels – defining agreed response and resolution times, with detailed escalation procedures;
- IT-specific clauses – including hosting arrangements, acceptance testing, and bug fixes;
- Payment terms – outlining fees, payment schedules, and provisions for late payments;
- Scope of services – clearly detailing what is and isn’t provided;
- Liability protections – ensuring that neither party is exposed to excessive risk;
- Intellectual property ownership – clarifying rights over software, data, and other IP;
- Confidentiality – protecting sensitive business and customer information;
- Term and termination – setting the length of the agreement and exit provisions.
Keeping Up With 2025 Trends in Managed Services
The managed services landscape is evolving rapidly in 2025, with organisations increasingly demanding more comprehensive cybersecurity protocols and continuous monitoring services. Modern agreements now often include detailed Service Level Agreements (SLAs), regular compliance audits, and provisions for remote monitoring to proactively address potential issues. This emphasis on high standards helps ensure that your IT infrastructure remains robust and resilient. For more on modern contract practices, have a look at our Contract Review service.
Why Choose Sprintlaw?
As a software-powered law firm with an in-house development team, we understand the evolving role and importance of Managed Services Agreements. Our approach blends traditional legal expertise with modern technology insights, ensuring that your agreement not only complies with current standards but also anticipates future challenges.
We also have extensive hands-on experience in this field. One of our co-founders formerly ran an app development agency, so our lawyers are well versed in the practicalities of drafting Managed Services Agreements that truly work. To further explore related legal documentation, you might also check out our guidance on Service Agreements and Consulting Agreements.
Please don’t hesitate to reach out to us for more information! We offer a free, no-obligations consultation and can be contacted at [email protected]. Let us help you solidify your managed service relationships and keep your business secure well into the future.
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