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Top Tips for Negotiating Fair IT Contracts

Updated: Feb 4


Okay, so you're looking to hire an IT company (what's called an MSP, or Managed Service Provider) to handle your tech stuff, right? It's important to get a good contract so you don't get stuck with bad service or surprise costs. Here's a simple guide to help you out.


Know What You Need


First things first, figure out exactly what you want the IT company to do. Do you need help with cybersecurity, cloud storage, or just fixing computers when they break? What hours do you need support? How fast do you need them to respond if something goes wrong? Knowing this stuff upfront makes negotiating way easier.


Talk About Service Expectations


Two people in an office setting work on a document, hands writing with laptops open. Notebooks and a pen holder are on a wooden table.

The Service Level Agreement (SLA) is super important. This is where you write down exactly what you expect from the IT company. For example:

  • Response Times: How quickly they need to get back to you when you have a problem.

  • Uptime: How often your systems need to be working (like, 99.9% of the time).

  • Support: If they’re available 24/7 or only during business hours.


Make sure the contract says what happens if they don't meet these expectations.


Check Out the Pricing


IT companies have different ways of charging:

  • Flat Rate: You pay the same amount every month for a set list of services.

  • Per Device/User: You pay based on how many computers or employees they’re supporting.

  • Pay-As-You-Go: You only pay for the services you actually use.


Get a clear breakdown of all the costs, including any setup fees, costs for new hardware or software, and what it costs to cancel the contract. No one likes hidden fees!


Think About How Long the Contract Lasts


Most contracts are for one to three years. Longer contracts might mean lower monthly costs, but you're also locked in for longer. It’s often a good idea to start with a shorter contract so you can see if you like the service. You can also include a clause to review the contract regularly and make changes if needed.


Plan Your Exit Strategy

You also need to think about how to end the contract if you need to. The contract should say:

  • Notice Period: How much notice you need to give before canceling.

  • Data Ownership: That you own your data and how you’ll get it back when the contract ends.


Look for Red Flags


It’s a really good idea to have a lawyer look over the contract before you sign it. They can spot things like confusing wording, limits on the IT company’s responsibility if something goes wrong, and any restrictions on you working with other IT companies in the future.


How MSP Align Can Help


This whole process can be a lot to handle, which is where MSP Align comes in. We can help you with everything from figuring out what IT services you need, to finding the right IT company, negotiating the contract, and even keeping an eye on their performance. Think of us as your IT contract experts. We can save you time, help you avoid risks, make sure you're getting a good price, and take a lot of the stress out of managing IT.


Getting a good IT contract is all about being prepared and paying attention to the details. By knowing what you need, understanding the SLA and terminology being used, checking the pricing, and having an exit strategy, you can get a contract that gives you good service and protects your business.




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MSP Align helps businesses find, evaluate, and manage IT service providers—not provide IT services ourselves. We guide companies through the entire process, from assessing IT needs and researching providers to negotiating contracts and overseeing performance. Our expertise saves businesses time, reduces risks, lowers IT costs, and simplifies provider management.

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