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A managed services contract focuses solely on support services within a business. It involves service level agreements (SLAs) that help manage risks associated with failures in service commitments. These contracts are utilized when customers require only support offerings. SLAs, typically detailed within Statements of Work (SOW), outline priorities and response times and are essential to the main agreement. Designing managed services contracts to allow for auto-renewal is crucial, as it secures revenue over an extended period. The pricing structure is set to facilitate this locking period, and termination is not permitted during this time.