July 07, 2025
You've heard the phrase: You get what you pay for. This rings especially true in the world of IT.
At first glance, opting for a cheaper managed IT service might look like a smart move—lower monthly fees, basic support, and perhaps some cybersecurity features included. But beneath the surface, hidden charges, limited coverage, and critical exclusions often lurk, ultimately costing your business much more.
After years of analyzing IT contracts for small businesses, we've identified recurring issues. Here are five common ways "budget" MSPs cut corners—and how those shortcuts can lead to expensive problems for your company.
1. Insufficient or Missing Cybersecurity Measures
Relying solely on basic antivirus software is not true cybersecurity.
Yet, many low-cost IT providers stop there. They skip essential protections like two-factor authentication, advanced endpoint detection, employee cybersecurity training, and fail-safe backups.
Why is this critical? Cyber insurance companies now mandate advanced cybersecurity protocols before issuing policies. Without these, your insurance claim could be denied after an attack.
We've witnessed businesses suffer losses of tens of thousands of dollars because their MSP neglected to implement the required protections. This isn't support—it's negligence.
2. Incomplete Backup Solutions That Risk Your Critical Data
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace fully back up their data.
In reality, these services provide only basic backup functionality and do not serve as comprehensive disaster recovery or long-term retention solutions.
Budget IT providers often neglect backups for cloud applications, CRMs, and third-party tools, leaving vital data vulnerable. Even worse, many lack immutable backups, a requirement for many cyber insurance policies today.
Think your data is safe? Verify with your current provider exactly what is—and isn't—being backed up.
3. Unexpected Charges for On-Site Visits and After-Hours Support
Here's a common tactic: advertise a low monthly fee, then add extra charges whenever you need support outside regular hours or require an in-person visit.
We advocate for transparent, flat-rate pricing. However, many providers exclude on-site services, after-hours assistance, and emergency support from their base rate to increase fees later.
The outcome? You hesitate to call for help, your team delays reporting issues, and downtime—and costs—escalate.
4. Lack of Support for Vendors and Third-Party Devices
Issues with your phones, internet, or security cameras? Some IT firms will simply say, "That's outside our scope."
They may even charge hourly fees just to communicate with your other vendors. If your printer or other hardware isn't on their approved list, they might refuse to assist altogether.
We provide comprehensive vendor coordination and network support for all technology connected to your business, because problems can originate from many sources.
5. Unskilled Technicians and No Dedicated Account Management
A major warning sign is a "one-person operation" or a company employing entry-level techs on 1099 contracts without a strategic support plan.
With budget MSPs, you might get reactive help, but you won't receive proactive guidance.
What you deserve is:
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A dedicated account manager to develop your technology roadmap
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Regular assessments of your cybersecurity, compliance, and backup integrity
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Budget planning and upgrade strategy
● A trusted advisor—not just a ticketing system
Final Thought: If It Seems Too Good to Be True, It Probably Is.
Many small businesses remain unaware of their vulnerabilities until a crisis hits—whether it's a ransomware breach, server failure, or costly compliance penalty.
By then, the damage is done.
To truly safeguard your business, look beyond just the monthly price. Ask tough questions, demand honest answers, and avoid contracts that leave you exposed.
If you want a thorough review of your IT contract, let us assess your network. We offer a free evaluation of your current IT setup, identify any gaps, and provide clear, jargon-free advice on how to strengthen your defenses.
Click here or call us at 929-523-2921 to schedule your FREE Call With Our CEO.
