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Managed Services Agreement
"I need a managed services agreement for a 2-year contract with monthly performance reviews, covering IT support and maintenance, with a 30-day termination notice and a cap of $50,000 annually."
What is a Managed Services Agreement?
A Managed Services Agreement sets out how a service provider will handle specific business operations for their client on an ongoing basis. In the Philippines, these contracts typically cover IT support, cybersecurity, facilities management, or other technical services that companies prefer to outsource rather than maintain in-house.
The agreement details service levels, performance metrics, payment terms, and data protection requirements under Philippine privacy laws. It protects both parties by clearly defining responsibilities, establishing quality standards, and creating accountability frameworks - especially important given the strict compliance requirements for data handling under the Data Privacy Act of 2012.
When should you use a Managed Services Agreement?
Use a Managed Services Agreement when outsourcing critical business functions like IT infrastructure, cybersecurity, or facilities management to external providers in the Philippines. This becomes essential when your organization lacks the internal expertise or resources to maintain these operations effectively, or when scaling operations across multiple locations.
The agreement proves particularly valuable for businesses handling sensitive data under the Data Privacy Act, companies expanding their digital presence, or organizations needing 24/7 technical support. It helps establish clear accountability, protects both parties' interests, and ensures compliance with Philippine regulatory requirements while maintaining service quality standards.
What are the different types of Managed Services Agreement?
- Cloud Managed Services Agreement: Focuses on cloud computing services, data storage, and SaaS solutions with specific data privacy provisions under Philippine law
- IT Managed Services Agreement: Covers comprehensive IT infrastructure management, including hardware maintenance and technical support
- Managed Service Provider Contract: General-purpose agreement for ongoing technical services with flexible SLA terms
- Business Management Contract: Focuses on operational management and administrative oversight services
- Management And Administrative Services Agreement: Emphasizes back-office support, compliance management, and business process outsourcing
Who should typically use a Managed Services Agreement?
- Service Providers: IT companies, cloud service providers, or specialized firms offering technical expertise and infrastructure management to Philippine businesses
- Client Organizations: Companies seeking to outsource their IT, administrative, or operational functions while maintaining compliance with local regulations
- Legal Counsel: Corporate lawyers who draft and review Managed Services Agreements to ensure compliance with Philippine laws and protect client interests
- Technical Managers: IT directors and operations heads who oversee service delivery and maintain performance standards
- Compliance Officers: Professionals ensuring adherence to data privacy laws, industry regulations, and security requirements
How do you write a Managed Services Agreement?
- Service Details: List specific services, performance metrics, and response times expected from the provider
- Company Information: Gather complete legal names, registration numbers, and authorized representatives of both parties
- Compliance Requirements: Document data privacy obligations under Philippine law, especially for handling sensitive information
- Payment Structure: Define fees, payment schedules, and any performance-linked incentives or penalties
- Technical Specifications: Detail infrastructure requirements, software licenses, and security protocols
- Term and Exit: Specify contract duration, renewal terms, and termination conditions
- Platform Support: Use our automated system to generate a legally-sound agreement that includes all required elements under Philippine law
What should be included in a Managed Services Agreement?
- Parties and Purpose: Complete legal names, addresses, and clear description of services to be provided
- Service Level Terms: Detailed performance metrics, response times, and quality standards
- Data Privacy Provisions: Compliance requirements under the Philippine Data Privacy Act of 2012
- Payment Terms: Fee structure, payment schedule, and currency specifications
- Term and Termination: Contract duration, renewal options, and exit conditions
- Confidentiality: Protection of trade secrets and proprietary information
- Dispute Resolution: Philippine jurisdiction, arbitration preferences, and governing law
- Force Majeure: Provisions for unforeseen circumstances affecting service delivery
What's the difference between a Managed Services Agreement and a Supply of Services Agreement?
A Managed Services Agreement differs significantly from a Supply of Services Agreement in several key aspects under Philippine law. While both involve service provision, they serve distinct purposes and carry different obligations.
- Duration and Commitment: Managed Services Agreements typically establish long-term, ongoing relationships with regular oversight, while Supply of Services Agreements often cover specific, time-bound deliverables
- Scope of Control: Managed Services providers take proactive responsibility for entire business functions, whereas Supply of Services vendors deliver specific requested services
- Performance Metrics: Managed Services use comprehensive SLAs with continuous monitoring, while Supply agreements focus on discrete delivery milestones
- Risk Management: Managed Services include broader liability coverage and data protection provisions, reflecting their deeper integration into business operations
- Payment Structure: Managed Services typically involve recurring fees with service-level adjustments, while Supply agreements often use project-based or per-service pricing
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