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SIA research: How to negotiate MSAs, other supplier agreements

Negotiating and concluding a master service agreement, or MSA, and the adjacent supplier agreements can be challenging. However, the exercise can be executed more efficiently with proper information and preparation.

Staffing Industry Analysts’ report, “The Master Service Agreement and Supplier Agreement in an MSP Program [1],” describes several MSA and supplier agreement characteristics to help contingent workforce managers understand how such agreements should be drafted.

“This report is a useful tool for any contingent workforce program manager looking to enter into a relationship with a managed service provider; the outline structure included within the report can be used as a framework from which to build a tailored MSA,” said Jo Matkin, SIA’s global workforce solutions research director and an author of the report.

SIA’s Global Lexicon defines the master service agreement [2] as: “A contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements. Often companies will craft an MSA to outline the parameters of the legal relationship and include additional countries and or service lines as additional schedules to the MSA. This ensures that key contract provisions are uniform and saves time.”

The following recommendations can be deduced from the report:

The full report [1] is available online to CWS Council members. An outline of the structure of an MSA and adjacent SA is included within this report as a reference tool.

For information on CWS Council membership, click here [3].