July 07, 2025
You've heard the phrase: "You get what you pay for." This is especially true in the world of IT services.
At first glance, a low-cost managed IT service plan might look appealing—offering reduced monthly fees, basic support, and maybe a few cybersecurity features included. However, a closer look often reveals hidden expenses, limited coverage, and critical exclusions that can end up costing your business much more over time.
After years of evaluating IT contracts for small businesses, we've identified recurring pitfalls. Here are five common ways "budget" MSPs compromise quality, leading to expensive problems for business owners.
1. Insufficient or Missing Cybersecurity Measures
Basic antivirus software alone does not constitute adequate cybersecurity.
Yet, many budget IT providers stop there—no two-factor authentication, no advanced endpoint detection, no employee security training, and no backup safeguards if threats bypass defenses.
Why is this critical? Cyber insurance providers now mandate robust cybersecurity protocols before issuing policies, and lacking these can lead to claim denials after an incident.
We've witnessed businesses lose tens of thousands due to MSPs failing to implement the necessary protections their insurance required. This isn't just poor service—it's negligence.
2. Incomplete Backups That Risk Your Data
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace fully back up their data.
In reality, these platforms offer only basic backup capabilities and are not designed for comprehensive disaster recovery or long-term data retention.
Cost-conscious or inexperienced providers often neglect backing up cloud applications, CRMs, and third-party software, leaving vital data vulnerable. Even more concerning, many lack immutable backups, a requirement for numerous cyber insurance policies.
Think your backups are secure? Verify with your current provider exactly what data is protected—and what isn't.
3. Hidden Charges for On-Site or After-Hours Support
Here's a typical tactic: offer a low monthly rate but add extra fees whenever you need help outside regular hours or require an on-site visit.
We advocate for transparent, flat-rate pricing. Unfortunately, many providers exclude on-site visits, after-hours assistance, and emergency services from their base fees, tacking on surprise charges later.
This leads to hesitation in seeking support, causing delays and costly downtime for your team.
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 outside our scope."
They may even charge by the hour just to coordinate with your other vendors. If a device like your printer isn't on their approved list, they might refuse to assist altogether.
We provide comprehensive vendor coordination and network support for all technology connected to your business, because problems often stem from multiple sources.
5. Unskilled Technicians and No Dedicated Account Management
A major warning sign is a "one-person operation" or firms relying on entry-level contractors without strategic oversight.
Budget MSPs might offer reactive help, but they won't provide proactive guidance.
What you deserve is:
● A dedicated account manager who crafts a tailored technology roadmap
● Regular, proactive evaluations of your cybersecurity, compliance, and backup systems
● Budget planning and upgrade strategies
● A trusted technology 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 a crisis hits—be it ransomware, system failure, or a costly compliance issue.
By then, recovery is often too late.
If you want IT services that truly safeguard your business, look beyond just the price. Ask critical questions, demand clear answers, and avoid contracts that leave you exposed.
Curious about what your IT contract might be missing? Let us review your network at no cost. We'll identify gaps, explain what's lacking in plain language, and offer honest advice on strengthening your defenses.
Click here or call us at 978-664-1680 to schedule your FREE 15-minute Discovery Call.
