Legal Support for Managed IT Services Contracts and Outsourcing
Who We Help
We act for a wide range of organisations involved in managed IT services and outsourcing arrangements, including:
- Businesses procuring managed IT services, from SMEs to large organisations
- Managed service providers (MSPs) delivering IT support, cloud and infrastructure services
- Software developers and technology companies outsourcing elements of their operations
- In-house legal and procurement teams managing IT contracts and supplier relationships
- Founders and high-growth businesses scaling their technology infrastructure
How We Help
We support businesses at every stage of the managed services lifecycle, from initial procurement through to exit and transition. Whether you are outsourcing your IT function or delivering managed services to your customers, we ensure your contractual position is clear, balanced and aligned with your commercial objectives.
Our experience covers a wide range of managed IT services agreements, including outsourcing arrangements, cloud services, software support and infrastructure services. We focus on reducing risk, improving clarity and ensuring that contracts work in practice, not just on paper.
Supporting Businesses Procuring Managed IT Services
Outsourcing IT services can deliver significant efficiencies, but it also introduces operational and legal risk. We advise organisations looking to engage managed service providers, ensuring that contracts properly protect their business and reflect the critical nature of IT systems.
We help clients navigate supplier selection, contract negotiation and ongoing contract management, with particular focus on service quality, accountability and continuity.
Advising Managed Service Providers
For providers of managed IT services, well-drafted contracts are essential to managing risk and maintaining profitable client relationships. We work closely with service providers to ensure their agreements clearly define the services being delivered, allocate responsibility appropriately and minimise exposure to disputes.
Our advice is commercially focused, helping providers balance legal protection with the need to remain competitive in a fast-moving market.
We provide commercially focused legal support across the full lifecycle of managed IT services arrangements, including:
- Drafting and negotiating managed IT services agreements and outsourcing contracts
- Advising on supplier selection, tender processes and due diligence
- Structuring service levels, KPIs and performance frameworks
- Allocating risk through liability, indemnity and insurance provisions
- Advising on data protection, confidentiality and cybersecurity obligations
- Supporting contract variations, renewals and change control processes
- Advising on termination, exit planning and transition to new providers
- Resolving disputes arising from service failures or contractual issues
Key Issues in Managed IT Services Agreements
Managed IT services contracts must address a range of technical and commercial considerations. We provide detailed advice on areas such as:
- Scope of services and service descriptions
- Service levels and performance metrics (SLAs)
- Liability, indemnities and risk allocation
- Data protection, confidentiality and cyber security
- Termination rights, exit planning and transition support
We ensure that these provisions are not only legally robust but also workable in real-world scenarios.
Our Experience with Managed IT Services
Our IT Technology solicitors have acted for both providers of IT Managed Services and customers procuring such services, including:
- Assisting a national IT-managed services provider with drafting terms and conditions for their services.
- Assisting a software house to outsource their call centre requirements.
- Advising a software developer in relation to a collaboration agreement for the development of a platform with outsourced hosting and support services.
- Acting for a software house who is outsourcing hosting and software services for a bank.
- Advising, drafting, and negotiating an exit plan on behalf of a software house to meet their client's specific requirements.
Managed IT Services FAQs
What are service credits?
Service credits are a mechanism of allowing a customer to receive a credit if the supplier's performance does not meet the agreed standard of performance set out within a service level agreement.
For example, if the agreed response and remedy time is exceeded in the event of a software fault or downtime.
The trigger for a service credit is generally set at such a level that both the customer and supplier agree that the performance is inadequate.
Service credits can be used as a sole remedy in the event of inadequate performance – in this instance, once the customer is granted the service credits, it shall have no further right for breach of contract against the supplier.
The mechanism for calculating both the value and the trigger events can be as simple or complex are the supplier and customer agree. For example, complex mechanisms provide or scale service credits dependent upon the severity of the failure.
Supplier-friendly terms can also include a "service credit holiday' – a period following the commencement of the agreement where service credits are not payable, given that this period ordinarily experiences the greatest number of faults and downtime.
What is 'benchmarking'?
Benchmarking is a common process in a long-term supply of managed IT services and involves appointing an independent third party to carry out an assessment of the supplier's services and charges and compare this against the services and charges on the market to determine whether the supplier's offering remains competitive.
If the supplier's offering is considered not competitive or good value, then this can trigger the obligation to revise the fees or service offering or an automatic price reduction.
Benchmarking can be a useful tool for suppliers who can use the provisions as an incentive for securing customers into longer-term relationships.
What does a service level agreement include?
A service level agreement, or an SLA agreement, can be a separate, stand-alone agreement or be included within a contract for managed IT services (usually contained within a schedule).
The service level agreement will set out the agreed levels that the supplier is to provide the services and how the services are to be utilised, for example, by contacting the supplier through its IT help desk on specified numbers.
A service level agreement will ordinarily include faults deemed out-of-scope of the supplier's remit, for example, any faults caused by the customer.
What is a disaster recovery and business continuity plan?
A disaster recovery plan and a business-continuity plan are agreed schedules of action which may be incorporated into an IT-managed services contract, setting out the action to be taken by both customer and supplier in the event of a disruption to the service.
The purpose of a disaster recovery plan and a business continuity plan is:
- To prevent or minimise loss of data.
- To minimise disruption to, or preserve, the continued supply of the services to the customer or to ensure that the services return to normal as soon as possible.
- To minimise or prevent any impact on the service levels (if any).
A disaster recovery plan and a business continuity plan should be drafted in a way that is flexible for any changes that occur during the term of the contract, which was not envisaged or relevant at the outset.
What is an Exit Plan in an IT-managed services contract?
An exit plan is an agreed schedule of cooperation and action on the part of the supplier and customer, setting out how a supplier shall exit from the agreement and transition the services back to the customer or a replacement supplier.
If drafted and negotiated well, an exit plan should ensure that minimal disruption is caused to the customer when the transition occurs.
The exit plan should set out all aspects of post-termination/expiry assistance that is required of the supplier, including what charges are payable to the supplier for such support.
Why Work With Our IT/Technology Team
- Myerson Solicitors' IT lawyers can provide businesses with extensive legal advice and support on a wide range of IT-related matters.
- Members of the Society for Computers & Law
- Active participants in the UK technology ecosystem
- Working with Myerson Solicitors means you'll have access to legal experts who can support and help your business stay ahead of the curve in today's ever-evolving digital landscape.
- An alternative to the major, regional, and national firms by offering high-quality Technology law advice from specialist solicitors, but on a much more cost-effective basis.
- By working closely with our IT clients, we can ensure we meet their expectations for business operations and provide clear, specialist expertise. We are easy to deal with and understand that a common-sense approach is often required.
- Extensive experience in dealing with a broad range of IT disputes, such as data protection and software development issues, giving businesses fast and helpful advice based on knowledge of their business, its history, and pressures.
- A partner-led service and a genuinely accessible team of experienced IT law solicitors due to our size, structure, and unique culture.
- Our Technology Solicitors are happy to discuss your situation in a free, no-obligation telephone consultation. We are committed to transparent pricing and will always discuss costs with you at the outset. Fixed fees and retainers may be available where appropriate.
We are trusted by founders, investors and in-house counsel who require commercially astute advice delivered with accessibility and strategic insight.
Testimonials
Meet Our Technology Solicitors
Home-grown or recruited from national, regional or City firms. Our Technology lawyers are experts in their fields and respected by their peers.
Contact Our Experts
You can contact our lawyers below if you have any more questions or want more information: