Case Study: Streamlining Contracts for an IT Managed Service Provider
SLB Legal recently helped a growing Managed Service Provider (MSP) which supplies remote and onsite IT support, backup and device management services and also resells software licences and hardware. The business had expanded quickly, but its contracts had not kept up with its operations.
The Contract Problem for the IT Managed Servicer Provider
The MSP was using a mix of outdated and inconsistent terms. Customers were signing various documents (or sometimes none at all), which had resulted in:
- Disputes over the managed service scope and what was included in the monthly fee.
- Confusion about pricing, subscription renewals and customer responsibilities.
- Unclear refund and return processes for hardware.
- Delayed payments due to unclear ordering and approval processes.
- An over-reliance on the CEO to negotiate every customer deal.
These issues were costing the business time, cash flow, and customer credibility.
How did SLB Legal help?
We conducted an in-depth and detailed review of the MSP's current contract documents, identifying gaps and missing conditions. We coupled this with our in-depth interview and consultation process to deeply understand the MSP's unique products and services, delivery model, client onboarding process, and commercial priorities.
This thorough tailored review and consultation process meant we could draft a new set of customised online terms and conditions, with specific tailored product schedules. We designed these to:
- Streamline and standardise the ordering process and standardise contract sign-off: reducing the number of touchpoints and the reliance on the CEO required to get the deal signed.
- Clearly outline service scope, customer and supplier responsibilities as well as data security and privacy obligations: helping to reduce disputes, scope creep and payment delays.
- Include clear payment terms, consequences for non-payment and invoice dispute resolution process: to assist the client to protect its cash flow and resolve invoice or fee queries quickly.
- Set out the terms and tailored process in respect of refunds and returns: which helped our client comply with Australian Consumer Laws and also included appropriate limits to reduce unnecessary out-of-pocket expense for the supplier.
The Result
This project transformed our MSP client's contracting process from reactive and inconsistent to efficient, professional, and scalable, helping the business protect its revenue and customer relationships as it continued to grow.
If you are a MSP or supplier of IT products and services and are contracting with old or inconsistent contract terms, get in contact with SLB Legal today to discuss how we can help your contracts work for you, not against you.
