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A Managed Services Agreement sets out how a service provider will handle specific business operations for your organization in Saudi Arabia. It's commonly used when companies outsource their IT systems, facilities management, or other technical services to specialized providers who take on day-to-day responsibilities.

These agreements follow Saudi commercial law requirements and typically outline service levels, performance metrics, and security standards. They detail payment terms, confidentiality obligations, and Shari'ah-compliant dispute resolution procedures. For Saudi businesses, these contracts often include specific provisions about data localization and compliance with the Kingdom's cybersecurity frameworks.

Use a Managed Services Agreement when outsourcing critical business functions in Saudi Arabia, especially IT services, facility management, or technical support. This becomes essential once your operations grow beyond internal capacity or require specialized expertise that's more cost-effective to source externally.

The agreement proves particularly valuable when dealing with sensitive data handling, complex technical requirements, or services that must align with Saudi regulatory frameworks. For example, healthcare providers outsourcing patient record systems, financial institutions delegating cybersecurity operations, or manufacturing companies contracting maintenance services all benefit from having clear, comprehensive service terms and compliance standards documented.

• IT Managed Services Agreement: Focuses on technology infrastructure management, including cybersecurity, cloud services, and IT support under Saudi data protection laws
• Facilities Management Agreement: Covers physical asset maintenance, security services, and building operations in compliance with Saudi municipal regulations
• Business Management Consulting Agreement: Addresses strategic advisory services, operational improvements, and business transformation initiatives
• Managed Print Services Contract: Specifies document management services, equipment maintenance, and supply chain requirements for printing operations

• Service Providers: Technology companies, facilities management firms, and specialized consultancies that deliver managed services under Saudi commercial law
• Client Organizations: Saudi businesses, government entities, and institutions that outsource operations to external providers
• Legal Departments: In-house counsel and external law firms who draft and review agreements for Shari'ah compliance
• IT Directors: Oversee technical specifications, service levels, and cybersecurity requirements in line with CITC regulations
• Compliance Officers: Ensure agreements meet Saudi data protection laws and industry-specific regulations
• Finance Teams: Monitor payment terms, service metrics, and performance-based compensation structures

• Service Scope: Document specific deliverables, performance metrics, and technical requirements aligned with Saudi business needs
• Compliance Details: Gather relevant CITC regulations, data protection requirements, and industry-specific standards
• Party Information: Collect accurate legal names, commercial registration numbers, and authorized signatory details
• Operational Terms: Define service levels, response times, and reporting requirements that match your business goals
• Risk Management: Outline liability limits, insurance requirements, and Shari'ah-compliant dispute resolution procedures
• Document Generation: Use our platform to create a customized agreement that incorporates all essential elements while ensuring legal compliance

• Party Details: Full legal names, commercial registration numbers, and authorized representatives per Saudi company law
• Service Description: Detailed scope, deliverables, and performance metrics aligned with CITC guidelines
• Payment Terms: Clear pricing, payment schedule, and Shari'ah-compliant financial conditions
• Data Protection: Compliance with Saudi data residency laws and cybersecurity frameworks
• Service Levels: Specific performance standards, reporting requirements, and quality metrics
• Termination Rights: Clear conditions for contract ending and service transition procedures
• Dispute Resolution: Saudi arbitration provisions and Islamic law compliance statements
• Force Majeure: Local force majeure definitions and mitigation procedures

A Managed Services Agreement differs significantly from a Supply of Services Agreement in several key aspects under Saudi law. While both involve service provision, their scope and operational framework are distinct.

• Duration and Commitment: Managed Services Agreements typically establish long-term, ongoing relationships with comprehensive service management, while Supply of Services Agreements often cover specific, time-bound deliverables
• Operational Control: Managed services providers take proactive responsibility for entire business functions, whereas supply of services vendors deliver specific requested services
• Performance Metrics: Managed Services Agreements include detailed KPIs and service level agreements (SLAs), while Supply Agreements focus more on delivery specifications
• Risk Allocation: Managed services providers assume greater operational risks and responsibilities under Saudi commercial law, including cybersecurity and data protection obligations