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, a low-cost managed IT service plan might look appealing—offering reduced monthly fees, basic support, and maybe some cybersecurity features included. But when you look closer, hidden expenses, limited coverage, and critical exclusions often emerge, costing you 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 business owners.
1. Inadequate or Missing Cybersecurity Measures
Simply installing basic antivirus software does not equate to effective cybersecurity.
Yet, many affordable IT providers stop there—no two-factor authentication, no advanced endpoint protection, no employee security training, and no backup defenses if a threat bypasses initial safeguards.
Why is this critical? Cyber insurance companies now mandate advanced cybersecurity protocols before issuing policies, and lacking these can lead to claim denials after an incident.
We've witnessed businesses incur tens of thousands in losses because their MSP failed to implement the cybersecurity measures required by their insurance. This isn't just poor service—it's negligence.
2. Incomplete Data Backups That Risk Your Business
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace fully back up their data.
However, these services provide only basic backup capabilities and do not serve as comprehensive disaster recovery or long-term data retention solutions.
Low-cost or inexperienced IT providers often neglect backing up cloud applications, CRMs, and third-party platforms, leaving vital data vulnerable. Even more concerning, many lack immutable backups, which are essential for meeting many cyber insurance requirements.
Think your data is safe? Verify with your current provider exactly what is—and isn't—being backed up.
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 you require support outside regular business hours or need an on-site visit.
We advocate for transparent, flat-rate pricing. Unfortunately, many providers exclude on-site visits, after-hours assistance, and emergency support from their base rates to increase fees later.
This practice leaves you hesitant to seek help, causing your team to delay contacting support and ultimately increasing costly downtime.
4. No Assistance with Vendors or External Devices
Experiencing issues with your phones, internet, or security cameras? Some IT companies will simply say, "That's outside our scope."
They may even charge hourly rates just to communicate with your other vendors. If your printer or other devices aren't on their "approved" list, they might refuse support altogether.
We provide complete vendor coordination and network support for all technology connected to your business, because problems can arise from any source.
5. Lack of Experienced Technicians and Account Management
A major warning sign is a "one-person operation" or firms relying on entry-level techs hired as contractors without a strategic support plan.
With budget MSPs, you may receive basic assistance, but not expert guidance.
What you deserve is:
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A dedicated account manager who collaborates with you to develop a tailored technology roadmap
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Regular, proactive evaluations of your cybersecurity, compliance, and backup status
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Forecasting budgets and planning upgrades strategically
● A trusted advisor dedicated to your success—not just a ticketing system
Final Thought: If It Sounds Too Good To Be True, It Probably Is.
Many small businesses don't realize they're vulnerable until disaster strikes—be it ransomware, hardware failure, or costly compliance penalties.
By then, the damage is done.
If you want IT services that truly safeguard your business, look beyond just the price. Ask tough questions, demand clear answers, and avoid contracts that leave you exposed.
Curious about what your current IT contract might be missing? Let us evaluate your network for free. We'll identify any gaps, explain them clearly, and offer straightforward advice on how to secure your technology.
Click here or call us at 281-402-2620 to schedule your FREE 15-Minute Discovery Call.
