July 07, 2025
You've likely heard the phrase: You get what you pay for. This couldn't be truer than in the world of IT services.
At first glance, opting for a low-cost managed IT service might seem like a smart financial move—lower monthly fees, basic support, and perhaps some cybersecurity tools included. But beneath the surface, hidden fees, limited coverage, and critical exclusions often lurk, which can end up costing your business significantly more over time.
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 these shortcuts can lead to expensive challenges for business owners.
1. Insufficient or Missing Cybersecurity Measures
Basic antivirus software alone is not adequate cybersecurity.
Yet many budget IT providers stop there, offering no two-factor authentication, no advanced endpoint detection, no employee cybersecurity training, and no backup defenses if threats bypass initial protections.
Why is this critical? Cyber insurance providers now mandate robust cybersecurity protocols before issuing policies. Without these safeguards, your insurance claim could be denied after an incident.
We've witnessed businesses face tens of thousands in losses because their MSP failed to implement the necessary protections required by their insurance. This goes beyond poor service—it’s negligence.
2. Incomplete Backup Solutions That Risk Your Data
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace automatically back up their data.
In reality, these services provide only basic backup capabilities and are not designed for comprehensive disaster recovery or long-term data retention.
Low-cost or inexperienced IT providers often neglect backups for cloud applications, CRMs, and third-party platforms, leaving vital data vulnerable. Even more concerning, many omit immutable backups, a critical requirement for many cyber insurance policies.
Think your backups are secure? Ask your provider exactly what data they protect—and what they don't.
3. Hidden Charges for On-Site and After-Hours Support
A common tactic is to advertise a low monthly fee, then add extra charges whenever support is needed outside regular business hours or requires an on-site visit.
We advocate for transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency support from their base fees to impose additional costs later.
The consequence? You hesitate to seek help, and your team delays contacting support, resulting in longer downtime and higher losses.
4. Lack of Support for Vendors and Third-Party Devices
Encounter problems with your phones, internet, or security cameras? Some IT firms will simply say, "That's outside our scope."
They may even charge you by the hour just to liaise with your other vendors. If a device like your printer 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 issues can arise from any source.
5. Inexperienced Technicians and Lack of Account Management
One major warning sign is a "one-person operation" or a company that hires entry-level technicians as contractors without a strategic plan for your IT support.
With budget MSPs, you might get reactive help, but rarely proactive guidance.
Here’s what you should expect:
● A dedicated account manager to develop a tailored technology roadmap
● Regular proactive assessments of your cybersecurity, compliance, and backup status
● Budget forecasting and upgrade planning
● A trusted advisor, not just a ticketing system
Final Thoughts: If It Seems Too Good to Be True, It Probably Is.
Most small businesses remain unaware of their IT vulnerabilities until disaster strikes—be it ransomware, server failures, or hefty compliance penalties.
By then, it's often too late.
If you want IT services that truly safeguard your business, focus beyond just the monthly cost. Ask the tough questions, demand clear answers, and avoid contracts that leave you exposed.
Curious about what your current IT contract might be missing? Let us review your network for free. We’ll identify any gaps, explain what’s needed in plain language, and offer honest advice on how to secure your systems.
Click here or call us at 1-310-798-0405 to schedule your FREE 15-Minute Discovery Call.
