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Managed Services Agreement
I need a Managed Services Agreement for an IT service provider to manage our company's network infrastructure, including 24/7 monitoring, regular maintenance, and on-demand support. The agreement should include clear SLAs, a monthly reporting structure, and a termination clause with a 60-day notice period.
What is a Managed Services Agreement?
A Managed Services Agreement spells out how one company will handle specific business operations or IT services for another company in the UAE. It's the cornerstone document that details everything from service levels and performance metrics to payment terms and data security requirements.
Under UAE commercial law, these agreements must clearly outline both parties' obligations, especially regarding data protection and confidentiality. Common services covered include IT infrastructure management, cybersecurity monitoring, cloud computing support, and help desk operations. The agreement typically runs for 1-3 years and includes specific provisions for service delivery in UAE free zones and mainland jurisdictions.
When should you use a Managed Services Agreement?
Use a Managed Services Agreement when outsourcing critical business functions to external providers in the UAE, especially for IT services, facilities management, or specialized technical operations. This agreement becomes essential when your company needs ongoing support that requires detailed service standards, regular performance monitoring, and clear accountability measures.
The agreement is particularly important for UAE businesses operating in regulated sectors like finance or healthcare, where data protection and service continuity are crucial. It provides the legal framework needed when establishing long-term service relationships, setting clear expectations for both parties, and ensuring compliance with UAE commercial regulations and data protection requirements.
What are the different types of Managed Services Agreement?
- Basic IT Services Agreement: Covers fundamental technology support, network maintenance, and help desk services - commonly used by UAE SMEs
- Comprehensive Enterprise MSA: Includes advanced cybersecurity, cloud management, and disaster recovery - ideal for large organizations in regulated sectors
- Infrastructure Management Agreement: Focuses on physical and digital infrastructure oversight, including data center operations and hardware maintenance
- Industry-Specific MSA: Tailored for sectors like healthcare or financial services, incorporating UAE regulatory compliance requirements and sector-specific service levels
- Hybrid Service Model: Combines on-site and remote service delivery, popular in UAE free zones and tech hubs
Who should typically use a Managed Services Agreement?
- Service Providers: IT companies, facility management firms, or specialized contractors who deliver the managed services under UAE commercial law
- Client Organizations: UAE businesses, government entities, or multinational companies seeking to outsource specific operations
- Legal Teams: In-house counsel or external law firms who draft and review the agreements to ensure UAE regulatory compliance
- IT Directors: Oversee technical specifications, service level requirements, and performance metrics within the agreement
- Compliance Officers: Ensure the agreement meets UAE data protection standards and industry-specific regulations
How do you write a Managed Services Agreement?
- Scope Definition: List all services, deliverables, and performance metrics you need the provider to fulfill
- Service Levels: Define specific response times, uptime requirements, and quality standards expected in UAE operations
- Compliance Requirements: Gather relevant UAE regulatory requirements, especially for data protection and industry-specific regulations
- Cost Structure: Outline payment terms, fee calculations, and any variable pricing components in AED
- Technical Specifications: Document infrastructure requirements, security protocols, and reporting mechanisms
- Exit Strategy: Plan transition procedures, data handover protocols, and termination conditions
What should be included in a Managed Services Agreement?
- Party Details: Full legal names, trade licenses, and registered addresses of service provider and client
- Service Description: Detailed scope of services, performance standards, and deliverables under UAE law
- Term and Renewal: Contract duration, renewal conditions, and notice periods aligned with UAE commercial practice
- Payment Terms: Fee structure, payment schedule, and currency specifications in AED
- Data Protection: Compliance with UAE data protection laws and confidentiality obligations
- Dispute Resolution: UAE jurisdiction clause, arbitration provisions, and governing law
- Termination Rights: Clear conditions for contract termination and post-termination obligations
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, though both involve service delivery. The main distinction lies in the nature and duration of the service relationship.
- Service Duration: Managed Services Agreements establish long-term, ongoing operational relationships, while Supply of Services Agreements typically cover discrete, project-based deliverables
- Scope of Control: Managed Services providers take broader operational responsibility and often manage entire business functions, unlike service suppliers who deliver specific, limited services
- Performance Metrics: Managed Services Agreements include detailed KPIs and continuous monitoring frameworks, whereas Supply Agreements focus on specific deliverable milestones
- Integration Level: Managed Services providers typically become deeply integrated with the client's operations, accessing systems and resources, while service suppliers maintain more independent operations
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