How Strong SLA Frameworks Drive Better MSP Performance

Many organizations still focus heavily on SLA metrics like uptime and ticket closure rates, but those metrics alone do not create strong governance or long-term value. In this episode of Insights for IT Negotiations, Kylie Chisholm is joined by UpperEdge managed services experts Greg Hall and Ally Kuppens to discuss why the structure behind SLAs is often more important than the metrics themselves. The conversation explores how modern SLA frameworks support flexibility over long-term managed services agreements, allowing organizations to adapt as business priorities change. Greg and Ally walk through the four core components of an effective SLA framework: risk sharing, SLA adjustment rights, termination for cause, and continuous improvement. They explain how each one helps balance accountability with a healthy provider relationship. Listeners will come away with practical guidance on how to design SLAs that stay relevant over time, align to real business outcomes, and create shared incentives for continuous improvement in managed services relationships. Resources: BLOG - ⁠AI and the Future of Managed Services Contracts: Lessons from MSP Earnings Calls WEBINAR - AI in Managed Services: Bridging the Gap Between Expectations and Reality About the Show: Welcome to Insights for IT Negotiations, a podcast by UpperEdge, a leading IT sourcing, negotiation, and project-execution advisory firm. Join John Belden, UpperEdge’s Chief Research & Strategy Officer, and Kylie Chisholm, UpperEdge’s Marketing Manager, every other week as they share high-impact insights to help you maximize the value of your key IT relationships. Episode Chapters: 00:00 Why SLA Metrics Alone Fall Short 01:02 Introducing the Guests and Today’s Topic 02:57 Why Traditional SLA Approaches No Longer Work 04:53 The Need for Flexible and Elastic SLA Structures 05:47 What an SLA Framework Really Is 06:56 The Four Core Components of an Effective SLA Framework 07:04 Risk Sharing and Creating Real Provider Accountability 09:40 How Risk Sharing Changes MSP Day to Day Behavior 13:29 Managing Providers and Avoiding SLA Gaming 15:33 SLA Adjustment Rights and Evolving Business Priorities 16:02 KPIs vs CPIs and Why the Difference Matters 17:59 How and When Clients Should Adjust SLAs 21:21 Termination for Cause Rights and Healthy Governance 24:32 Continuous Improvement That Actually Drives Value 26:05 Aligning SLAs to Business Outcomes Over Time 27:33 Key Takeaways and Final Thoughts