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A managed services contract primarily addresses the support aspect of a business, focusing on service level agreements (SLAs) and risk management. It is relevant when customers seek only support offerings, making it suitable to propose a managed services contract in such cases. SLAs, typically outlined in the statement of work (SOW), detail priorities and response times alongside the main agreement. The design of a managed services contract includes provisions for auto-renewal, which helps secure revenue for extended periods. Pricing is structured to enforce a locking period, minimizing the potential for early termination.