Managed Services Agreement Template for South Africa

A Managed Services Agreement sets out how a service provider will handle specific business functions for their client, usually involving IT, security, or operational support. These contracts are common among South African businesses looking to outsource key operations while maintaining control over service quality and performance standards.

The agreement spells out exactly what services will be delivered, response times, service levels, and how performance will be measured. It includes provisions aligned with the Consumer Protection Act and POPIA requirements, especially when handling sensitive data. Most importantly, it creates clear accountability by defining what happens if things go wrong and how disputes will be resolved under South African contract law.

Consider putting a Managed Services Agreement in place when outsourcing critical business functions like IT infrastructure, cybersecurity, or facilities management to external providers. This becomes especially important when handling sensitive data that falls under POPIA regulations or when the service directly impacts your core operations.

The agreement proves invaluable during major business transitions, such as moving operations to the cloud or expanding facilities. It's particularly crucial for regulated industries in South Africa where compliance requirements demand clear accountability and service standards. Having this agreement ready before service disruptions occur protects both parties and ensures smooth dispute resolution under local contract law.

• Managed Services Contract: Core template for ongoing IT and technical support services, with comprehensive SLAs and performance metrics
• Management Consulting Contract: Focused on strategic advisory services with project-based deliverables and expertise requirements
• Facilities Management Agreement: Specialized for property and infrastructure management with maintenance schedules and compliance requirements
• Business Management Consulting Agreement: Covers broad operational improvement services with specific business transformation objectives
• Service Management Contract: General service delivery framework adaptable for various operational support functions

• Service Providers: IT companies, facilities managers, or specialist consultants who deliver the managed services and must meet agreed performance standards
• Client Organizations: Businesses seeking to outsource key functions while maintaining control over service quality and compliance with South African regulations
• Legal Teams: In-house counsel or external law firms who draft and review agreements to ensure POPIA compliance and proper risk allocation
• Operations Managers: Oversee day-to-day service delivery and monitor performance against agreed metrics
• Compliance Officers: Ensure the agreement aligns with industry regulations and data protection requirements

• Service Scope: Define exact services, delivery locations, and performance standards your business needs
• Provider Details: Gather full company information, relevant certifications, and proof of compliance with South African regulations
• Performance Metrics: List specific KPIs, response times, and service level requirements you'll measure
• Data Handling: Document POPIA compliance requirements and data security measures needed
• Cost Structure: Outline pricing, payment terms, and any performance-linked incentives
• Exit Strategy: Plan termination conditions and transition requirements upfront
• Template Selection: Use our platform to generate a legally-sound agreement that includes all mandatory elements

• Party Details: Full legal names, registration numbers, and authorized representatives of both service provider and client
• Service Description: Detailed scope, deliverables, and performance standards with measurable metrics
• POPIA Compliance: Data protection obligations, security measures, and breach notification procedures
• Payment Terms: Fee structure, invoicing schedule, and payment conditions aligned with South African banking regulations
• Service Levels: Response times, availability commitments, and performance penalties
• Term and Termination: Contract duration, renewal options, and exit procedures
• Dispute Resolution: South African jurisdiction, arbitration procedures, and governing law clauses

A Managed Services Agreement differs significantly from a Supply of Services Agreement in several key aspects, though both deal with service delivery. The main distinction lies in the ongoing nature and comprehensive scope of managed services versus discrete, specific service deliverables.

• Duration and Commitment: Managed Services Agreements typically involve long-term, continuous service delivery with regular monitoring and adjustment, while Supply of Services Agreements often cover specific, time-bound deliverables
• Service Level Requirements: Managed services include detailed performance metrics, response times, and continuous improvement obligations; supply agreements focus more on specific output specifications
• Operational Integration: Managed services providers usually become deeply integrated with the client's operations, requiring more complex governance structures and POPIA compliance measures
• Risk Allocation: Managed services involve shared operational risks and continuous performance management, whereas supply agreements typically have simpler risk transfer mechanisms