July 07, 2025
You've likely heard the phrase: You get what you pay for. This couldn't be truer than in the IT world.
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 maybe some cybersecurity add-ons. But when you look closer, hidden expenses, limited coverage, and overlooked exclusions often emerge, ultimately costing you far more in downtime and risk.
After years of examining 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 your business.
1. Inadequate or Missing Cybersecurity Measures
Relying on basic antivirus software is not sufficient cybersecurity.
Unfortunately, many low-priced IT providers stop at this minimal level—no two-factor authentication, no advanced endpoint detection, no employee cybersecurity training, and no backup defenses for breaches.
Why is this critical? Cyber insurance companies now require robust cybersecurity protocols before issuing policies. Without these in place, your insurance claims could be denied following an attack.
We've witnessed businesses lose tens of thousands of dollars because their MSP failed to implement the necessary protections mandated by their insurance. This is not 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 do not provide comprehensive disaster recovery or long-term data retention.
Budget IT providers often neglect backups for cloud applications, CRMs, and third-party systems, leaving vital information vulnerable. Worse, many omit immutable backups, which are essential for meeting modern cyber insurance requirements.
Think your data is safe? Ask your current provider exactly what is backed up—and what isn't.
3. Hidden Charges for On-Site and After-Hours Support
Many providers lure you in with a low monthly fee but then add extra costs whenever you require help outside standard hours or need an on-site visit.
We believe in transparent, flat-rate pricing. However, numerous MSPs exclude on-site visits, after-hours assistance, and emergency support from their base fees, tacking on surprise charges later.
This approach makes you hesitate to call for help, causing delays and leading to more expensive downtime.
4. No Support for Third-Party Vendors or Devices
Issues 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 coordinate with your other vendors. Plus, if a device like a printer isn't on their approved hardware list, they could refuse assistance altogether.
We provide comprehensive vendor coordination and network support for every technology component that powers your business, because problems often span multiple systems.
5. Lack of Experienced Technicians and Dedicated Account Management
A major warning sign is a "one-person operation" or a company relying on entry-level contractors without a clear support strategy.
With budget MSPs, you might get reactive help, but rarely 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 planning and upgrade forecasting
● A trusted advisor—not just a ticket responder
Bottom Line: If It Sounds Too Good to Be True, It Probably Is.
Many small businesses remain unaware of their vulnerabilities until disaster strikes—whether a ransomware attack, server failure, or costly compliance violation.
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 honest answers, and avoid contracts that leave you exposed.
Curious about what your current IT contract might be missing? Let us analyze your network for free. We'll identify gaps, explain them clearly, and offer straightforward advice to strengthen your defenses.
Click here or call us at 323-410-7785 to schedule your FREE 10-Minute Discovery Call.
