July 07, 2025
You've heard the phrase: You get what you pay for. This couldn't be truer than in the world of IT services.
At first glance, a low-cost managed IT service plan might look appealing—offering reduced monthly fees, basic support, and maybe a few cybersecurity features included. 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 evaluating 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 problems for business owners.
1. Insufficient or Missing Cybersecurity Measures
Basic antivirus alone does not constitute real cybersecurity.
Yet many low-priced IT providers stop there—no two-factor authentication, no advanced endpoint protection, no employee training, and no backup defenses if threats get through.
This is crucial because cyber insurance companies now mandate advanced cybersecurity protocols before offering coverage. Without them, your insurance claim could be denied after an attack.
We've witnessed businesses lose tens of thousands due to MSPs failing to implement the required protections. This isn't support—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 backups—not comprehensive disaster recovery or long-term retention.
Budget IT providers often exclude backups for cloud apps, CRMs, and third-party platforms, leaving vital information vulnerable. Even worse, many lack immutable backups, now a requirement for many cyber insurance policies.
Think your backups are safe? Ask your current provider exactly what is—and isn't—being backed up.
3. Unexpected Charges for On-Site and After-Hours Support
Here's a common tactic: offer a low monthly fee, but add extra costs for support outside regular hours or for on-site visits.
We advocate for transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergencies to inflate bills later.
This leads to hesitation in reaching out for help, causing delays that increase downtime and expenses.
4. Lack of Support for Vendors and Third-Party Devices
Issues with phones, internet, or security cameras? Some IT firms will simply say, "That's outside our scope."
They might even charge hourly fees just to coordinate with your other vendors. If your printer or other devices aren't on their "approved" list, they may refuse assistance altogether.
We provide comprehensive vendor coordination and full network support for all technology connected to your business, because problems can arise anywhere.
5. Unskilled Technicians and No Dedicated Account Management
A major warning sign is a "one-person operation" or a company relying on inexperienced techs hired as contractors, lacking a strategic support plan.
Budget MSPs might offer assistance, but they rarely provide strategic guidance.
What you deserve is:
● A dedicated account manager to develop your technology roadmap
● Regular, proactive evaluations of your cybersecurity, compliance, and backup status
● Budget planning and upgrade strategies
● A trusted advisor, not just a help desk ticket handler
Bottom Line: If It Sounds Too Good to Be True, It Probably Is.
Many small businesses don't realize their IT protection is inadequate until disaster strikes—be it ransomware, system failure, or hefty compliance penalties.
By then, it's often too late.
If you want IT services that truly safeguard your business, look beyond the price. 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 review your network at no cost. We'll identify any gaps and provide straightforward, jargon-free advice on how to strengthen your IT defenses.
Click here or call us at 916-626-4000 to schedule your FREE 15-Minute Discovery Call.
