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A managed services contract primarily functions as a support contract, focusing on the support aspects of a business. Key components include service level agreements (SLAs) and risk management related to asset performance under these agreements. This type of contract is relevant when a customer is interested solely in a support offering. SLAs, typically detailed in the statement of work (SOW), outline priorities and response times, working in tandem with the main agreement. The design of a managed services contract aims for auto-renewal to secure long-term revenue, incorporating a pricing structure that includes a locking period to prevent termination by clients.