Managed Service Providers (MSPs) offer a wide range of IT services designed to streamline business operations, enhance security, and reduce downtime. However, many businesses enter into these agreements without fully understanding the limitations. Not all services are included in a typical MSP contract, and understanding these exclusions is critical to avoiding unexpected costs or disruptions.
This article will outline some of the common exclusions found in managed services contracts and explain how businesses can plan accordingly.
Common Managed Services Contract Exclusions
One of the key aspects of managed services contracts is the definition of their scope. While MSPs provide comprehensive IT support, certain services are often excluded. These exclusions are not necessarily hidden, but they can lead to confusion if not clearly addressed upfront.
Specialized Cybersecurity Services Standard MSP contracts often include basic security measures such as antivirus software, firewalls, and monitoring. However, advanced cybersecurity services like incident response, penetration testing, and managed SOC services typically require a separate agreement. If your business operates in a high-risk industry or handles sensitive data, you may need to pay extra for specialized protection.
Hardware Costs While MSPs manage your IT infrastructure, they typically do not include hardware purchases in their base pricing. Items like servers, routers, and workstations are often billed separately. Businesses should factor these costs into their IT budget and ask whether the MSP offers discounts or hardware-as-a-service options.
Ad-Hoc Consulting Many businesses assume that consulting services are included in MSP agreements. However, strategic IT planning, compliance consulting, or assistance with large-scale IT projects may fall outside the contract’s scope. These services are generally billed on an hourly basis or under a separate consulting agreement.
Development and Custom Applications Managed IT contracts rarely include software development or the creation of custom applications. If your business requires specialized software solutions, you may need to engage a separate development team or negotiate additional services with your MSP.
Why Understanding MSP Contract Limitations Matters
Failing to understand MSP contract exclusions can lead to unexpected additional fees. For instance, many contracts include clauses about additional fees in MSP contracts for after-hours support, on-site visits, or extended maintenance tasks. Before signing, it’s crucial to review the agreement for clarity on what’s included and what requires extra charges.
An MSP agreement is a partnership, and like any partnership, transparency is key. By knowing upfront what is excluded, businesses can better align their expectations and plan for any additional services they might need.
Examples of Hidden Costs in Managed IT Contracts
Even if a contract seems comprehensive, businesses should look out for hidden costs. For example:
How to Mitigate Issues with Excluded Services in MSP Agreements
To avoid surprises, businesses should take a proactive approach:
Review the Scope of Services
Before signing, ensure the contract clearly defines the MSP services not included. Pay close attention to exclusions in areas such as security, consulting, and infrastructure.
Ask for Transparency in Additional Charges
Any MSP contracts additional charges should be explicitly outlined. Knowing upfront about these costs helps businesses make informed decisions.
Negotiate Custom Add-Ons
If certain services are excluded but critical to your business, ask the MSP about including them for an adjusted rate. This can simplify billing and service management.
Conclusion
A managed services contract offers businesses a way to streamline IT management, but it’s not a one-size-fits-all solution. By understanding what managed IT contracts don’t cover, businesses can avoid pitfalls and create a more effective partnership with their provider.
Services like advanced cybersecurity, hardware purchases, and ad-hoc consulting are often excluded from managed services exclusions, so it’s essential to review the contract carefully. Whether you’re concerned about hidden costs in managed IT contracts or seeking clarity on what’s included, open communication with your MSP will ensure that your IT needs are met without unexpected surprises.
By addressing the separate fees in MSP agreements upfront, businesses can better budget and secure the additional services they require to maintain smooth and secure operations.
Related Reading:
The True Cost of In-House IT vs. Outsourcing to an MSP: Deciding between in-house IT and an MSP? Learn how costs like salaries, downtime, and equipment compare to help you choose the best solution.
Cybersecurity for Small Businesses: Why MSPs Are Key: Small businesses face growing cyber threats. MSPs offer affordable cybersecurity services like 24/7 monitoring, risk assessments, and compliance support.