What is a Management Services Agreement

Learn a complete guide detailing what is a management services agreement, the benefits of outsourced IT MSA and why it is good to hire them.

Understanding IT Management Services Agreement

What is a Management Services Agreement?

A management services agreement is a contract signed between two parts. A client that requires the service, and the MSP (managed services provider) that is willing to provide it. These contracts state many of the details of the relationship and how long it will last.

The agreement is also a very important document because it is used to help consultants and different companies to multiply their benefits from engagement platforms.

Agreement Contents that Every MSA Must Have

The management company is usually the one that prepares this agreement, including provisions that are common in every related contract. These are the parties’names, contract duration, effective date, law choice, arbitration disputes, and others.

Usually,these agreements cover other matters covered, such as:

  • A list of the services or products one of the parts provides (tech support in this case).
  • The compensation for the services given by the manager,and what method.
  • Place where the IT service will perform the task.
  • Circumstances where one of the parts can cancel the contract
  • Indemnification requirements and liability limitations
  • Confidentiality agreement

Benefits of Signing Managed Services Agreements

Signing a managed service agreement can bring many benefits to a company. Contracting an outside manager or service can help to reduce costs, lower taxes, and increase efficiency. An agreement also diminishes issues related to space, equipment, and employees.

Saving Money

The most clear and noticeable benefit is that a company will save money when hiring an external employee, since it costs less than a full-time one. External hires also greatly reduce business costs, and investments related to office insurance and taxes are also very minor.

Less Legal Issues

Outside managers also remove legal issues such as recruiting, hiring, and firing. Another vital advantage is no need for training workers.

Brings More Trained Employees

Sometimes, it is not possible for companies to have an expert or specialist on each role that they need to cover. That’s where external professionals come in. Companies do not hire experts to work as a full-time employee like the other workers of the company, but for a specific role and period of time, previously agreed on.

Small companies benefit from this.Distributing the current staff and responsibilities in an effective way helps optimization. Outsourced hirings will free up the space of another worker that had to fill up that position and allow them to do what they know best and solving many related problems.

Better Use of Time and Resources

Management agreements can help businesses to save time and resources. Letting experts oversee certain tasks means the company doesn't have to worry about those problems anymore. This will increase efficiency and decompress the workers schedule a bit more.

Provides Constancy and Continuity

In order to succeed, a business needs to be constant and have some kind of continuity. This is specially related to the smaller ones. For example, in a group of two people, if one leaves for any reason, the company will be affected if the individual had a noticeable impact.

With an external service previously signed through an agreement, they would be managing everything, and the personnel loss wouldn’t worsen the situation. The disruption would be less noticeable, and the company would keep working as normal without any change.

More Competitivity

Companies sometimes need a little extra to compete against the giant corporations. Agreements with external services provide the same level of expertise that a big business has, with also a more adequate price to fit the needs.

Reduce Taxes

Companies pay taxes differently when it comes to team members they hire internally compared to externally. A Management Services Agreement details that the hired consultant is not a permanent worker or internal team member.

Flexible Time Solutions

Since hired management services are not full-time employees, they are not tied to the same schedule. These services monitor and solve problems in a proactive way, and are able to perform certain tasks during what would be the company’s off-hours.

Management Services Agreement in Gibraltar

Gibraltar is an overseas territory of the United Kingdom and had a membership right of the European Union until its withdrawal following Brexit.

Business in Gibraltar has significantly increased in the last few years, especially tech and insurance companies from the UK that have relocated there. This makes the territory one of the leading European captive jurisdictions of insurance.

This actual situation of constantly developing and evolving Gibraltar makes it the perfect choice for signing management services. Since the territory has some legislations that permit workers that don’t live there to enjoy the benefits and protections of the law, employers can focus on other contracts’ aspects.

Among this list of increasing businesses, The IT Lab Gibraltar stands out when it comes to many modern IT services: IT support, cyber security, consultancy, and more. Our team also provides vital remote support to solve any of the problems the hirer may have, besides telephone and cabling structure for companies.

Our services are affiliated with industry standard software such as Adobe CC and ESET Smart Security Premium. This provides agreat competitive advantage and in itself implies a great saving of money.

How Do Management Services Agreements Work in IT Services?

Outsourced IT tasks marked in a MSA are related and used to lighten the workload or act as a supplement for those that cannot meet the required demands. Depending on the hired services, some teams ensure a 24/7 coverage of IT duties, alongside certain knowledge and expertise to share.

The main services of our IT MSA are:

  • Remote monitoring and managing both hardware and software issues
  • Different cyber security services,virus or threat hunting
  • Backup and disaster recovery
  • Management and configuration of cloud services
  • Communications support

Unlike an IT support service in which solutions are offered on demand, our IT MSA service actively works to fix any issue that could happen, through intensive management, monitoring and scheduled maintenance.

Our services include all of this, along with automated updates, backups and monthly reports to show full transparency.

Other Important Considerations

Contract Length

It is vital that the contract specifies the length because it allows the professionals to plan accommodations and a future engagement.

While the duration may vary depending on the needs of each business company, some hire for short periods of 6 months meanwhile others plan an agreement for extended periods up to 5 years.Sometimes hiring companies renew these periods each year after they reach the first milestone.


An IT MSA team needs to access information of the hiring company that it cannot disclose to the public. That is why the parties must sign a confidentiality agreement. The hiring company must mark which info is private in the contract in order to protect clients, finances,and business relationships.

Types of Contract Violations

Contracts also specify where a violation of contract between the professional and the business occurs. Contracts detail every item and there’s steps to follow in case this happens. For example,working overtime, not being paid, or being in dangerous environments are causes of a contract violation.


Managed Services Agreements are contracts made by business companies to hire external services or consultants that provide a service. Outsourced IT tasks are one of them, helping many with their tech support, software, and hardware knowledge.

IT Lab Gibraltar is one of the most renowned outsourced IT MSA and IT support companies in the territory. They include tech support for cyber security, consultancy, and management in order to transform and develop businesses.