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What to Include in an IT Support Contract

Table of Contents

Why IT Contracts Matter
  • IT support services are a vital part of many UK SME's however the actual contract is generally overlooked.
  • Many companies will sign contracts without really understanding what they're getting into.
  • They may not understand what is included or excluded from the services provided.
  • This can cause unexpected bills in the future.
  • Bad contracts may also lead to a long wait time for support.
  • Any services that are missing from the contract can create a security or backup problem.
  • An IT support contract tells you how your systems will be both managed and supported.
  • Understanding your IT support contract will help you avoid risks and make informed decisions.
What an IT Support Contract Is
  • An IT Support Contract is a document that describes the relationship between a given organisation and a service provider supplying IT support services.
  • IT Support Contracts normally detail:
  • Services the IT service provider will provide
  • How IT Support will be delivered
  • Costs associated with the service provided
  • Responsibilities of both the IT service provider and the client
  • By establishing expectations, both parties can refer to the contract if there is disagreement.
  • A well-written IT Support Contract provides a framework that allows both the IT service provider and the client to clearly define and then refer back to what services are included in the agreement and what services are not.
Key Sections Every IT Support Contract Should Include
  • Every IT Support Contract should define the following sections:
  • Scope of Services
  • Guarantee of Response Time (Service Level Agreement)
  • Pricing for Service
  • Security responsibilities
  • Backup and Recovery coverage
  • Hours of Service
  • Termination Procedures
  • If there is any lack of clarity in these areas, it can lead to confusion and additional risks.

Service Scope and Inclusions

  • The service scope of the contract is one of the most critical parts of an IT contract.
  • This section will define what will be provided under this contract in detail.
  • Typical inclusions would be:
  • Providing support to staff via helpdesk,
  • Monitoring equipment,
  • Providing software updates,
  • Providing basic troubleshooting support.
  • Common exclusions would be:
  • Providing assistance for large projects such as migrations,
  • Providing new hardware,
  • Providing major upgrades to hardware.
  • If the service scope is not specifically defined the company may think it is included and find later it is not included.
Response Times and Service Levels (SLAs)
  • Service Level Agreements (SLA's) outline the time frame in which a service provider will respond to a client issue.
  • Some of the main things that are outlined in an SLA would be:
Acknowledge Response Time
  • How long it takes for the service provider to acknowledge the client's issue.
Resolution Time
  • How long it will take the service provider to fix the client's issue.
Issue Prioritisation
  • Issues may be classified into different priority levels (issuance categories):
  • Critical (client is completely down)
  • High
  • Medium
  • Low
  • If SLAs are poorly defined or not communicated clearly through the contract, the client may be adversely impacted by delays during significant incidents.

Pricing Structure and Billing Clarity

  • Understanding pricing is an important part of this process.
  • Pricing models that are used within IT services may include:
  • Per user (fixed monthly charge per employee)
  • Per device
  • Hourly fee for service
  • Fixed monthly support rate
  • In addition to understanding the pricing and billing structure, the following should be reviewed:
  • What is included with the monthly fee.
  • What will be billed as separate from the monthly fee.
  • Are there any additional charges for site visits by the service provider.
  • Hidden fees are one of the most common issues when dealing with IT contracts.

Security and Data Protection Considerations

  • The responsibilities of each individual regarding security must be clearly defined.
  • The following security responsibilities must be defined:
  • Antivirus and Endpoint Protection
  • Multi-factor Authentication
  • Monitoring and Alerts
  • Organisations must also identify their own responsibilities in protecting all data.
  • In the UK, all businesses must protect business and personal data appropriately. While IT vendors may assist in this, the ultimate responsibility often lies with the client.

Backup and Disaster Recovery Responsibilities

  • Many people misunderstand backup.
  • Contracts must define:
  • Inclusion of Backup
  • Frequency of Backup
  • Location of Storage of Backups
  • Restoration Test of Backups
  • If the clarification is missing, a business could find out too late that backup has been incorrectly configured.

Onsite vs Remote Support Expectations

  • Most businesses receive IT support through remote assistance.
  • However, remote support cannot assist with every IT issue.
  • Contracts must detail:
  • Inclusion of onsite support
  • Response times for onsite support
  • Additional fees for onsite support
  • Length of Contracts, Including Renewal and Termination

Contract Length, Renewal, and Exit Terms

  • Contracts are typically a rolling 12, 24 or 36-month agreement. Key areas to consider include:
  • Auto renewals
  • Notice periods
  • Exit Process
  • Data Transfer Procedures
  • If a contract does not have a good exit provision, it may create challenges when changing IT vendors.

Common Contract Mistakes Businesses Make

  • A large number of SMEs consistently make the same errors when dealing with contracts:
  • Failing to read the entire contract
  • Assuming all required services are included
  • Ignoring Service Level Agreements
  • Ignoring Exit Provisions
  • Not asking the appropriate questions
  • When businesses fail to complete any of these actions, it can lead to long-term contract issues.

IT Support Contract Review Checklist

  • Checklists that allow you to review whether an IT Support Agreement meets your requirements:
  • Services defined accurately
  • SLAs documented and agreed upon
  • Price transparency
  • Security obligations defined
  • Backup procedures included
  • Support hours clearly defined
  • Clear exit terms

Questions to Ask Before Signing

  • What’s included in the agreement?
  • Are there additional costs not included in the agreement?
  • What is the time-frame for response time?
  • Who is responsible for providing security?
  • If we terminate the contract what will happen?

FAQs

Pricing, SLA’s, Services, Security, Backup Procedures and Exit Terms.

Typically an IT Support Agreement will range in length from 12-36 months depending on your IT Support Provider.

Not generally, some IT Support Providers charge separately for additional services.

An SLA is an agreement of the time frame which IT Support will have a response or resolution for reported issues.

Companies will help reduce or avoid hidden costs associated with using IT Support by carefully reviewing the IT Support Agreement as well as asking meaningful questions to their IT Support Provider.

About This Guide

This guide was created by the Computer Support Centre for Small Medium Enterprises (SMEs) within the United Kingdom. This guide will clearly define what should be included in a UK-based IT contract. This guide will discuss the purpose of IT contracts and why they are important to manage both services and costs and the parties’ responsibilities. The guide will explain the service in simple terms and break down the important components of the contract (including service, service level agreements (SLAs), pricing, security and backup responsibilities).

Additionally, the guide indicates common misconceptions such as hidden costs and ambiguous inclusions related to the service provided by the supplier. To assist business owners with reviewing contracts for purchasing IT services, the guide contains several examples of practical checklists and questions. The goal of this guide is to assist with preventing confusion, decreasing risks and assisting business owners with making sound decisions when selecting an IT support provider.

Conclusion

The conclusion of this document we will now reach is that an IT support contract is also a strong foundation of reliable and secure IT services. An effective IT service contract will reduce unwanted expenses, will reduce unwanted delays and will create less risk for security breaches and gaps in your IT service. Companies that take the time to define the scope of services and service level agreements, pricing and exit options will reduce their exposure to long-term problems and poor service experience. Using a clear checklist to follow and asking the right questions will help small-medium enterprises establish transparency and be accountable for their IT service providers. The I.T. support contract can help your business achieve smooth running operations, control and manage your costs and develop a level of trust in the relationship you have established with your I.T. support provider.