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 financial move — lower monthly fees, basic assistance, and maybe some cybersecurity features included. But look closer, and you'll often uncover hidden expenses, limited coverage, and exclusions that can cost you far more over time.
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. Inadequate or Missing Cybersecurity Protections
Basic antivirus alone does not constitute effective cybersecurity.
Yet many budget IT providers settle for this minimal setup and consider their job done. They skip crucial elements like two-factor authentication (2FA), advanced endpoint detection, employee cybersecurity training, and contingency plans for breaches.
Why is this critical? Cyber insurance companies now require robust cybersecurity measures before issuing policies. Without these protections, your insurance claims could be denied following an incident.
We've witnessed businesses face losses of tens of thousands of dollars because their MSP failed to implement the required safeguards. This isn't just poor service — it's negligent IT management.
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 are not designed for comprehensive disaster recovery or long-term data retention.
Low-cost or inexperienced IT providers frequently neglect backing up cloud applications, CRMs, and third-party platforms, leaving vital information vulnerable. Even more concerning, many lack immutable backups, which are increasingly mandated by cyber insurance policies.
Think your backups are secure? It's essential to ask your current provider exactly what data they protect — and what they don't.
3. Unexpected Charges for On-Site or After-Hours Support
A common tactic is to offer a low monthly rate but then add fees whenever you require support outside regular business hours or need an on-site visit.
We advocate for transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency services from their base fees, allowing them to charge extra later.
This approach leaves you hesitating to call for help, causing delays that can increase costly downtime for your business.
4. Lack of Support for Vendors and Third-Party Devices
Issues with your phones, internet, or security cameras? Some IT companies will simply say, "That's not our responsibility."
They may even charge hourly rates just to coordinate with your other vendors. And if a device like your printer isn't on their "approved" hardware list, they might refuse assistance altogether.
We provide comprehensive vendor coordination and network support for all technology connected to your business, recognizing that problems can arise from multiple sources.
5. Unskilled Technicians and No Dedicated Account Management
A major warning sign is a "one-person operation" or a company relying on entry-level contractors without a strategic support plan.
With budget MSPs, you might receive basic assistance, but you won't get expert guidance.
What you deserve is:
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A dedicated account manager to help you develop a clear technology roadmap
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Regular, proactive evaluations of your cybersecurity, compliance, and backup status
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Budget planning and upgrade strategies
● A trusted advisor role rather than just a ticket-based tech support system
Bottom Line: If It Seems Too Good to Be True, It Probably Is.
Many small businesses remain unaware of their vulnerabilities until a crisis hits — whether a ransomware attack, server failure, or hefty compliance penalty.
By then, the damage is done.
To truly protect your business with IT, you must look beyond just the monthly cost. Ask the tough questions, demand honest answers, and avoid contracts that leave you exposed.
If you're unsure what your IT contract lacks, let us examine your network. We'll provide a free review of your current IT setup, highlight any gaps, and offer straightforward, jargon-free advice on how to secure your systems.
Click here or call us at 952-941-7333 to schedule your FREE Consult.
