July 07, 2025
You've probably heard the phrase: You get what you pay for. This is especially true in the world of IT.
At first glance, opting for a low-cost managed IT service might look like a smart move—lower monthly fees, basic support, and maybe some cybersecurity features included. But when you look closer, hidden fees, limited coverage, and important exclusions often surface, leading to much higher expenses down the road.
After years of analyzing IT contracts for small businesses, we've noticed recurring issues. Here are five common ways "budget" MSPs cut corners—and how these shortcuts can cause expensive problems for business owners.
1. Insufficient or Missing Cybersecurity Measures
Basic antivirus software does not equate to solid cybersecurity.
Yet many budget IT providers stop there. They skip essential layers like two-factor authentication, advanced endpoint detection, employee cybersecurity training, and backup defenses for breaches.
Why is this critical? Cyber insurance companies now mandate advanced cybersecurity protocols before approving coverage. Without these, your insurance claim could be rejected after an incident.
We've witnessed businesses lose tens of thousands because their MSP failed to implement the required protections. This isn’t just poor service—it’s outright negligence.
2. Incomplete Backups That Risk Your Data
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace fully back up their data.
In reality, these tools offer only basic backup functionality and do not provide comprehensive disaster recovery or long-term data retention.
Low-cost or inexperienced IT providers often neglect backups for cloud apps, CRMs, and third-party platforms, leaving vital information vulnerable. Even more concerning, many don’t provide immutable backups, which are increasingly required by cyber insurance policies.
Think your backups are safe? Ask your current provider exactly what data is protected—and what isn’t.
3. Hidden Charges for On-Site or After-Hours Support
Here’s a common bait-and-switch: advertise a low monthly fee, then add extra charges whenever you need support outside standard hours or require an on-site visit.
We believe in transparent, flat-rate pricing. But many providers exclude on-site visits, after-hours assistance, and emergency support from their base plans so they can bill you later.
The outcome? You hesitate to call for help, and your team delays reaching out, leading to longer downtime and higher costs.
4. No Support for Vendors or Third-Party Devices
Experiencing issues with phones, internet, or security cameras? Some IT companies will simply say, "That’s outside our scope."
They may even charge you hourly just to communicate with your other vendors. And 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 rarely come from just one source.
5. Unqualified Technicians and Lack of Account Management
A major warning sign is a "one-person operation" or firms that hire entry-level techs on 1099 contracts without a clear support strategy.
With budget MSPs, you might receive some assistance, but you won’t get expert guidance.
What you deserve is:
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A dedicated account manager to develop a tailored technology roadmap
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Regular proactive assessments of your cybersecurity, compliance, and backup status
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Budget planning and upgrade strategies
● A trusted advisor—not just a help desk ticket system
The Bottom Line: If It Seems Too Good to Be True, It Probably Is.
Many small businesses don’t realize their IT protection is insufficient until disaster strikes—whether it’s a ransomware attack, server failure, or costly compliance violation.
By then, the damage is done.
If you want IT solutions that truly safeguard your business, look beyond the price tag. Ask tough questions, demand clear answers, and avoid contracts that leave you vulnerable.
Curious about what your current IT contract might be missing? Let us analyze your network. We’ll provide a free review of your IT setup, explain any gaps in plain language, and offer straightforward advice on how to strengthen your defenses.
Click here or call us at 858-202-0304 to schedule your FREE 15-Minute Discovery Call.
