July 07, 2025
The old adage "You get what you pay for" couldn't be truer in the IT world.
At first glance, a low-cost managed IT services plan might look appealing with modest monthly fees and standard support, plus some cybersecurity features included. But when you dig deeper, hidden expenses, limited coverage, and loopholes often emerge—costing you much more over time.
After years of scrutinizing IT contracts for small businesses, we've identified recurring pitfalls. Here are five common ways subpar "budget" MSPs cut corners—and how those shortcuts translate into costly issues for business owners.
1. Inadequate or Absent Cybersecurity Measures
Relying solely on basic antivirus software is far from sufficient cybersecurity.
Yet that's precisely what most bargain IT providers install before calling it a day. No multi-factor authentication (2FA), no advanced endpoint monitoring, no employee cyber-awareness training, and no fallback protections.
Why is this critical? Cyber insurance now mandates sophisticated cybersecurity controls before approving policies. Without them, claims might be rejected post-incident.
We've witnessed businesses lose tens of thousands because their MSP failed to implement mandatory protections for insurance compliance. That's not support; that's negligence.
2. Incomplete Data Backups Putting Your Assets at Risk
Many business owners wrongly assume platforms like Microsoft 365 or Google Workspace automatically safeguard all their data.
These tools offer only basic backup capabilities and aren't designed for complete disaster recovery or long-term retention.
Budget IT providers frequently neglect backups for cloud apps, CRM systems, and other third-party tools, leaving critical data vulnerable. Even worse, many overlook immutable backups, which cyber insurers increasingly require.
Think your data's protected? Verify with your current provider exactly what they back up—and what they leave exposed.
3. Unexpected Charges for On-Site Visits and After-Hours Support
A common tactic: advertise a low flat monthly fee but add surprise charges whenever support is needed outside normal business hours or requires an in-person visit.
We believe in transparent, predictable pricing. But many MSPs exclude on-site support, after-hours assistance, and emergency services from their base plan so they can upsell fees.
This leads to hesitation when calling for help and delays in resolving issues, which ultimately increases costly downtime.
4. Refusal to Assist with Third-Party Vendors and Devices
Problems with phones, internet service, or security cameras? Some IT companies will simply say, "That's outside our scope."
They may even charge hourly rates just to liaise with your other service providers. If your printer isn't on their approved list, help might not be offered at all.
We cover full vendor coordination and network support for all technology impacting your business because issues don't always stem from a single source.
5. Lack of Experienced Technicians and Dedicated Account Management
A major warning sign is an MSP run by a single individual or staffed with entry-level contractors lacking a strategic approach.
With budget providers, you get reactive help but no proactive guidance.
What you deserve instead is:
● A dedicated account manager to build a customized technology roadmap
● Regular, proactive audits of your cybersecurity, compliance, and backup status
● Budget forecasts and strategic upgrade planning
● A trusted advisor relationship—not just a help desk ticketing system
Conclusion: Beware Offers That Seem Too Good to Be True
Most small businesses only realize their IT protection is insufficient after a devastating event—such as a ransomware attack, system failure, or heavy compliance penalty.
By then, the damage is often irreversible.
For IT services that truly safeguard your business, focus beyond the price. Ask penetrating questions, demand clear answers, and never settle for a contract that leaves you vulnerable.
If you want an expert review of your IT contract, we can analyze your network at no cost. We'll identify gaps, explain what's missing in clear terms, and provide honest guidance on closing those vulnerabilities.
Click here or call us at (502) 473-9330 to schedule your FREE 15-Minute Discovery Call.
