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 move: reduced monthly fees, basic support, and maybe some cybersecurity tools included. But beneath the surface, hidden fees, limited coverage, and overlooked exclusions can lead to much higher expenses down the line.
After years of analyzing IT contracts for small businesses, we've noticed recurring issues. Here are five common ways "budget" MSPs cut corners—and how these shortcuts can create expensive problems for your business.
1. Insufficient or Missing Cybersecurity Protections
Basic antivirus software is not enough to protect your business.
Yet many budget IT providers stop there—no two-factor authentication, no advanced endpoint detection, no employee cybersecurity training, and no backup safeguards if an attack occurs.
Why is this critical? Cyber insurance providers now mandate advanced cybersecurity measures to qualify for coverage. Without these, your insurance claim could be denied after a cyberattack.
We've seen businesses face tens of thousands in losses because their MSP failed to implement the required protections. This isn't just poor IT support—it's negligence.
2. Incomplete Backups That Risk Your Critical Data
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace automatically back up all their data.
In reality, these services offer only basic backup capabilities and are not designed for full disaster recovery or long-term data retention.
Lower-cost or inexperienced IT providers often neglect backups for cloud apps, CRMs, and third-party tools, leaving vital information vulnerable. Even worse, many fail to provide immutable backups, a requirement for many cyber insurance policies today.
Think your data is safe? Ask your provider exactly what is—and isn't—being backed up.
3. Hidden Charges for On-Site and After-Hours Support
Here's a common bait-and-switch: advertise a low monthly fee, then add extra charges whenever you need support outside regular business hours or require an on-site visit.
We believe in transparent, flat-rate pricing. Unfortunately, many providers exclude on-site visits, after-hours assistance, and emergency support to charge you more later.
The result? You hesitate to call for help, and your team delays reporting issues—leading to costly downtime and frustration.
4. No Support for Vendors or Third-Party Devices
Problems with your phones, internet, or security cameras? Some IT companies will simply say, "That's outside our scope."
They might even charge you hourly just to liaise with other vendors. If your printer or other hardware isn't on their "approved" list, they may refuse to assist altogether.
Our approach includes comprehensive vendor coordination and support for all technology connected to your business, because issues can arise from any source.
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 without a clear support strategy.
With budget MSPs, you might get reactive help—but not proactive guidance.
What you deserve is:
●
A dedicated account manager to craft a strategic technology roadmap
●
Regular, proactive reviews of your cybersecurity, compliance, and backup status
●
Budget forecasting and technology upgrade planning
● A trusted advisor who prioritizes your business—not just a ticketing system
Bottom Line: If It Sounds Too Good To Be True, It Probably Is.
Many small businesses remain unaware they're underprotected until disaster strikes—whether it's a ransomware attack, server failure, or hefty compliance penalty.
By then, the damage is done.
If you want IT services that truly safeguard your business, look beyond just the price. Ask the tough questions, demand clear answers, and avoid contracts that leave you vulnerable.
Curious about what your current IT contract might be missing? Let us evaluate your network for free. We'll identify any gaps, explain them in plain language, and offer honest advice on how to strengthen your defenses.
Click here or call us at (925) 766-4005 to schedule your FREE 15-Minute Discovery Call.
