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A managed services contract serves as a support contract focused on the support area of a business. Key components include service level agreements (SLAs), which define how risk is managed if there are SLA failures. These contracts are applicable when a customer specifically seeks a support offering. SLAs are detailed in the statement of work (SOW) and complement the main agreement, emphasizing response times and priorities. Managed services contracts are designed with auto-renewal clauses to secure long-term revenue, incorporating a locking period that prevents contract termination. It's crucial to establish clear SLA terms within the supported context.