**London**: A study by Info-Tech Research Group outlines the difficulties organisations encounter in creating effective managed service agreements, highlighting common pitfalls and proposing a structured approach for IT leaders to enhance vendor management and contract outcomes, benefitting business objectives and service quality.
A recent study by Info-Tech Research Group sheds light on the persistent challenges organisations face in formulating effective managed service agreements (MSAs) with managed service providers (MSPs). As companies increasingly rely on MSPs for enhanced efficiency and specialised IT services, many struggle to establish agreements that yield lasting value.
According to Info-Tech’s research, common pitfalls in the development of these agreements include misaligned objectives, unclear performance metrics, and insufficient risk management. These issues can result in inefficiencies, unexpected expenses, and strained relationships with vendors. The newly released blueprint titled “Ensure Business Alignment in Managed Service Agreements” proposes a structured methodology for IT leaders to create contracts that align with business objectives and deliver measurable outcomes.
“Building a comprehensive, business-aligned managed service contract is not about reinventing the wheel but pursuing the right process rigorously,” stated Manish Jain, principal research director at Info-Tech Research Group. He emphasised the necessity for organisations to clearly define the roles and responsibilities of their service providers and establish a governance framework that ensures continuous performance monitoring.
The research highlights that many organisations lack dedicated vendor management offices, which can lead to fragmented contract oversight and misaligned expectations. Without formal governance structures in place, it becomes challenging to measure vendor performance and ensure service agreements adapt to changing business needs.
Info-Tech proposes a structured three-phase approach to enhance service agreements:
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Define Business Objectives and Align the Engagement Model: Organisations should begin by assessing strategic goals and ensuring that the engagement model reflects these objectives.
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Establish SLAs, KPIs, and Governance for Performance Management: Service-level agreements and key performance indicators must align with business priorities and be assessed against clear benchmarks. A robust governance framework is vital for maintaining service quality and accountability.
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Validate Risk and Compliance Management: Effective contract oversight necessitates proactive risk management and compliance measures, including thorough plans for disaster recovery and business continuity.
By adopting this structured approach, organisations can improve contract visibility, mitigate unforeseen costs, and effectively manage IT-related risks. Strengthening vendor management capabilities can also lead to improved service quality and more resilient partnerships with MSPs.
This guidance comes at a crucial moment, as businesses navigate the complexities of outsourcing IT services while striving to maintain competitiveness in an increasingly digital marketplace.
Source: Noah Wire Services
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