Managed IT services contract and SLA: what to check

A managed IT services contract sets out what the provider does for you and on what terms. Where there is one, the SLA (Service Level Agreement) is its measurable part: support hours, response times, priorities. It is this document that matters on the day something breaks, far more than the sales presentation.

Contracts often look alike on paper. The differences come down to a few specific clauses, which are worth reading before you sign.

Scope: what is included, and what is not

The scope describes the users, devices and services covered: computers, servers, network, Microsoft 365, backups, security. It must be precise enough that any request is clearly in or out.

• The list of covered services and the number of users or devices.
• Explicit exclusions, for example business applications maintained by their vendor.
• Pricing for out-of-scope work: rate, billing unit, prior approval.
• What counts as a separately billed project, such as a migration or an office move.

SLA: response time or resolution time?

Response time is the time between your request and a first qualified response. Restoration or resolution time is the time until the service is back or the problem is fixed. Many contracts commit only to the first, which is understandable: how long a repair takes sometimes depends on a manufacturer or a carrier. Without an SLA, no figure is usually guaranteed. What matters is that the contract states clearly which times are guaranteed, if any, and whether they run only during business hours.

Also check the support hours: days and hours covered, how emergencies are handled outside those hours, and which channel to use (ticket, phone, e-mail). Finally, ask what happens if a response time is missed: a simple note in the report, or a consequence set out in the contract.

How are priority levels defined?

An SLA can rank requests by priority, with different response times for each level. Priority depends on the business impact and the number of people affected, not on how insistent the request is. If response times by priority matter to you, ask for a written matrix, with examples, included in the contract.

Reports and follow-up

Depending on the contract, managed services can include reporting: requests handled, response times where they are agreed, status of backups and updates, recommendations. Check what is included. A periodic review, for example once a year, lets you adjust the scope as the company changes. Ask for a sample report before signing: it shows what the provider actually measures.

Exit terms, duration and notice period

Reversibility, or the exit plan, organizes the end of the contract: handing back administrator access, documentation and data, and help with the transfer to another provider or an in-house team. It is negotiated at signing, while the relationship is good.

• The initial term and the renewal conditions.
• The notice period and how termination must be given.
• The list of what is handed over at the end of the contract, and how quickly.
• Account ownership: the Microsoft 365 tenant, domain name and administrator access stay in your name.
• The terms of transition assistance, and whether it is billed.

Red flags in a managed IT services contract

• Times announced without saying whether they are response or resolution times.
• Response times per priority level announced without the priority levels being defined in writing.
• An automatic renewal whose term and notice period are not clearly stated.
• No mention of handing back the documentation at the end of the contract.
• Absolute commitments, such as total availability, without saying how they are measured.