July 07, 2025
You've likely 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 services plan might look appealing—offering reduced monthly fees, basic support, and perhaps some cybersecurity features included. But when you look closer, hidden fees, limited coverage, and gaps in protection often emerge, leading to much higher costs down the road.
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 create expensive problems for business owners.
1. Insufficient or Missing Cybersecurity Measures
Basic antivirus software is not enough to protect your business.
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 a threat bypasses initial safeguards.
This is critical because cyber insurance companies now require robust cybersecurity protocols before issuing policies. Without these in place, your insurance claim may be denied after an incident.
We've witnessed businesses lose tens of thousands due to MSPs failing to implement the cybersecurity protections their insurance demanded. 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 fully back up their data.
In reality, these tools offer only basic backup capabilities and are not designed for comprehensive disaster recovery or long-term data retention.
Lower-cost or inexperienced IT providers often neglect backing up cloud apps, CRMs, and third-party software, leaving vital information vulnerable. Worse, many fail to provide immutable backups, now a mandatory feature 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
Here's a common tactic: advertise a low monthly fee, then add extra costs whenever you need help outside regular hours or require an on-site visit.
We believe in transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency support from their base fees so they can bill you later.
This approach causes hesitation when calling for help, leading to delays that increase downtime and costs.
4. Refusal to Support Vendors and Third-Party Devices
Having trouble with your phones, internet, or security cameras? Some IT companies will simply say, "That's outside our scope."
They may even charge hourly fees just to communicate with your other vendors. If your printer or device isn't on their "approved" list, they might decline to assist entirely.
We provide comprehensive vendor coordination and network support for all technology connected to your business, because issues can arise from multiple sources.
5. Lack of Experienced Technicians and Dedicated Account Management
A major warning sign is a "one-person operation" or firms relying on entry-level contractors without a clear support strategy.
With budget MSPs, you might receive some assistance, but you won't get strategic guidance.
What you should expect includes:
● A dedicated account manager who partners with you to develop a technology roadmap
● Regular proactive evaluations of your cybersecurity, compliance, and backup health
● Budget forecasting and upgrade planning to keep your technology future-ready
● A trusted advisor providing personalized support—not just a ticketing system
Bottom Line: If It Seems Too Good to Be True, It Probably Is.
Many small businesses don't realize their IT protections are insufficient until a crisis hits—be it a ransomware breach, server failure, or costly compliance penalty.
By then, damage control is often too late.
If you want IT services that truly safeguard your business, look beyond the price tag. Ask tough questions, demand honest answers, and avoid contracts that leave you vulnerable.
Curious what your current IT contract might be missing? Let us review your network at no cost. We'll identify any gaps, explain them clearly, and offer straightforward advice on how to strengthen your defenses.
Click here or call us at 336-904-2445 to schedule your FREE 15-Minute Discovery Call.
