July 07, 2025
You've 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 seem like a smart way to save money—offering reduced monthly fees, basic support, and perhaps some cybersecurity features. However, a closer look often reveals hidden charges, limited coverage, and critical exclusions that can end up costing your business significantly more over time.
After years of analyzing IT contracts for small businesses, we've identified recurring pitfalls. Here are five common ways "budget" MSPs cut corners—and how these shortcuts can lead to expensive problems for your company.
1. Insufficient or Missing Cybersecurity Measures
Simply installing basic antivirus software does NOT equate to proper cybersecurity.
Yet many budget IT providers stop there—no two-factor authentication, no advanced endpoint detection, no staff training, and no backup defenses if threats slip past.
Why is this critical? Cyber insurance providers now mandate advanced cybersecurity protocols before issuing policies. Without these in place, your insurance claim could be denied after a breach.
We've witnessed businesses lose tens of thousands because their MSP failed to implement the necessary protections required by their insurance. This isn't just 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 fully back up their data.
In reality, these services offer only basic backup capabilities and aren't designed for comprehensive disaster recovery or long-term retention.
Low-cost or inexperienced IT providers often omit backups for cloud apps, CRMs, and third-party platforms, leaving vital data vulnerable. Even worse, many lack immutable backups, now essential for most cyber insurance policies.
Think your backups are secure? It's essential to ask your provider exactly what data is protected—and what isn't.
3. Hidden Charges for On-Site and After-Hours Support
One common tactic is advertising a low monthly fee, then adding extra costs whenever you require support outside regular business hours or need an on-site visit.
We advocate for transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency services from their base pricing to charge more later.
This approach causes you to hesitate before calling for help, leading to delayed support and increased downtime that can cost your business dearly.
4. Lack of Support for Vendors and Third-Party Devices
Experiencing problems with your phones, internet, or security cameras? Some IT companies will simply say, "That's not our responsibility."
They might even charge you hourly just to communicate with your other vendors. If a device like your printer is connected to your network but not on their "approved" list, they may refuse to assist altogether.
We provide comprehensive vendor coordination and network support for all technology that powers your business, because issues can arise from any source.
5. Unqualified Technicians and No Dedicated Account Management
A major warning sign is an MSP run by a single individual or staffed with entry-level contractors hired without a strategic support plan.
With budget providers, you might receive basic assistance, but not expert guidance.
Here's what you deserve:
● A dedicated account manager crafting a clear technology roadmap
● Regular, proactive evaluations of your cybersecurity, compliance, and backup systems
● Strategic budget planning and upgrade recommendations
● A trusted advisor focused on your business, not just a ticketing system
Bottom Line: If It Seems Too Good To Be True, It Probably Is.
Many small businesses remain unaware of their vulnerabilities until disaster strikes—be it ransomware, system failures, or costly compliance penalties.
By that point, the damage is often irreversible.
To truly safeguard your business, look beyond just the price. Ask tough questions, demand clear answers, and avoid contracts that leave you exposed.
If you're unsure about your current IT contract, let us review your network. We'll provide a free assessment, identify any gaps, and offer straightforward, jargon-free advice on how to strengthen your defenses.
Click here or call us at 832-536-9012 to schedule your FREE Discovery Call.
