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Managed Services Agreement
I need a managed services agreement for a Belgian IT company to outsource its network management and support services. The agreement should include a detailed service level agreement (SLA), a 12-month term with an option to renew, and provisions for data protection compliance under GDPR.
What is a Managed Services Agreement?
A Managed Services Agreement sets out how an external provider will handle specific business functions - like IT support, security monitoring, or facility management - for your organization. Under Belgian contract law, it creates clear obligations for both parties, detailing service levels, response times, and quality standards the provider must meet.
These agreements protect both sides by spelling out exactly what services will be delivered, how they'll be measured, and what happens if things go wrong. They typically run for 1-3 years and must comply with Belgian data protection rules, especially when handling sensitive information. Many Belgian companies use these agreements to access specialized expertise while controlling costs and maintaining service quality.
When should you use a Managed Services Agreement?
Use a Managed Services Agreement when outsourcing critical business functions to external providers in Belgium. This agreement becomes essential for IT services, facility management, security monitoring, or any specialized operation where you need consistent, professional delivery with clear performance standards.
The agreement proves particularly valuable when your organization lacks internal expertise or needs to scale operations efficiently. Belgian companies often implement these agreements during digital transformation projects, when expanding to new locations, or when streamlining operations to meet EU compliance requirements. Having this agreement in place before service delivery begins protects both parties and ensures smooth operations from day one.
What are the different types of Managed Services Agreement?
- Managed Services Contract: The standard base agreement covering core service delivery, pricing, and general terms
- Facility Management Services Agreement: Specialized version for property and facility maintenance services with specific safety and access provisions
- Managed Services Service Level Agreement: Focuses on detailed performance metrics, response times, and service quality standards
- Management Fee Agreement Intercompany: Tailored for internal service arrangements between affiliated companies under Belgian corporate law
Who should typically use a Managed Services Agreement?
- Service Providers: IT companies, facility managers, or specialized contractors who deliver the managed services and must meet agreed performance standards
- Client Organizations: Belgian businesses, from SMEs to large corporations, who need external expertise or want to outsource specific functions
- Legal Counsel: Internal or external lawyers who draft and review agreements to ensure compliance with Belgian business law
- Operations Managers: Staff who oversee day-to-day service delivery and monitor performance metrics
- Data Protection Officers: Ensure agreements comply with Belgian and EU data protection requirements when handling sensitive information
How do you write a Managed Services Agreement?
- Scope Definition: List all services, performance metrics, and expected outcomes in detail
- Party Information: Gather complete legal names, registration numbers, and authorized representatives of both parties
- Service Levels: Define specific metrics, response times, and quality standards you'll require
- Cost Structure: Document all fees, payment terms, and potential additional charges
- Data Handling: Outline data protection measures compliant with Belgian privacy laws
- Term and Exit: Decide contract duration and termination conditions
- Template Selection: Use our platform to generate a legally-sound agreement that includes all required elements under Belgian law
What should be included in a Managed Services Agreement?
- Party Details: Full legal names, registration numbers, and authorized signatories of both parties
- Service Description: Detailed scope of services, deliverables, and performance standards
- Duration & Renewal: Contract term, renewal conditions, and notice periods under Belgian civil code
- Payment Terms: Fee structure, payment schedule, and currency specifications
- Service Levels: Measurable performance metrics and remedies for non-compliance
- Data Protection: GDPR compliance measures and data handling procedures
- Termination Rights: Clear conditions for contract termination and wind-down procedures
- Governing Law: Explicit reference to Belgian law and jurisdiction
What's the difference between a Managed Services Agreement and a Supply of Services Agreement?
A Managed Services Agreement often gets confused with a Supply of Services Agreement, but they serve distinct purposes in Belgian business law. While both involve service delivery, their scope and implementation differ significantly.
- Ongoing vs. Project-Based: Managed Services Agreements cover continuous, proactive service delivery with regular monitoring and maintenance, while Supply of Services Agreements typically focus on specific, time-bound deliverables
- Performance Metrics: Managed Services include detailed service level agreements (SLAs) and continuous performance monitoring, whereas Supply agreements usually focus on project milestones and completion criteria
- Resource Management: Managed Services providers often embed their staff or systems within the client's operations, while Supply agreements maintain clearer operational boundaries
- Risk Distribution: Managed Services transfer operational responsibility to the provider, including preventive maintenance and system optimization, while Supply agreements typically limit responsibility to specific deliverables
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