Contract Termination – Does a Managed Service Agreement Always Solve the Problem?

Termination is a hard job to do, especially when you have long and healthy customer relationships. Your customers rely on you for managed services and also things like firewall configuration, IT documentation and even account credentials. What if a situation where your customer is not delaying their end of your agreement? Inorder to keep your customer happy, you are doing whatever possible but they are holding the payments, went out of scope or have additional hours unpaid and finally you are in the verge of terminating the customer.

Is it possible to deny managed services or use their data as power rather than transferring it over to their in-house IT team or their newly hired managed services provider (MSP)?

Termination of Managed Services Contract is one of the essential things you and your customer must agree to at the commencement of your partnership. Here are the tips about the things you should address in your managed services agreement, the conditions that both parties should abide by and how you can manage transfers and data. It can help save both you and your customers headaches when it comes time to break up.

How Managed Services Agreement Solve the Challenge?

Keep in mind that not all break-ups with your clients are cordial, especially if you trigger them. Your ex-client would try to tell you, as an example, that they are covering up the payment for reasons other than you putting an end to their contract. They may resist that you were unsuccessful to meet terms of your service level agreement (SLA) or didn’t abide by the other terms of your managed services agreement. Then, you can be served with a suit appealing that you are illegally keeping the credentials or data that your customer claims you owe them.

This is a great example of why following professional services automation (PSA), remote monitoring and management (RMM) or IT documentation can give the records you require to prove that you have met contracted services and SLAs.

Yet, it is no assurance the battle will come to an end with you getting paid. The Managed Service Provider subreddit involves different aspects that comprises disdained clients trying to renegotiate a lesser cost for their final settlements, countersuits, and even legal moves for refusing property. Some recommend that it’s always safer to follow the high road and offer the ex-customer with what they require and handle with the non-payment issue separately. Furthermore, in some cases, the customer doesn’t want anything you’re denying, or they may tell you that they have it under their custody, and then keep asking you for help, even though you consider the last due payment off as a bad debt.

A key takeaway for Managed Service Provider is that if you never meet termination of client relationships in your agreement, you don’t have any power or control at all.

So, examine your agreements with legal advice to ensure the termination of relationship is written and that it helps the best way for clients to changeover to a new Managed Service provider as well as making sure you aren’t encountering a huge loss.

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