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A managed services contract is a support-focused agreement designed for businesses who require assistance solely in that area. Key components include service level agreements (SLAs) that outline risk management regarding asset performance. Typically, these contracts are utilized when customers seek only support offerings. SLAs, usually detailed in a statement of work (SOW), are crucial for setting priorities and response times. Managed services contracts are structured for auto-renewal to ensure revenue stability, with a locking period to prevent termination. This setup secures ongoing support and aligns customer expectations regarding service delivery.