July 07, 2025
You've heard the phrase: You get what you pay for. This is especially true when it comes to IT services.
At first glance, a low-cost managed IT service plan might look appealing — with reduced monthly fees, basic support, and maybe some cybersecurity features included. But if you look closer, hidden expenses, limited coverage, and exclusions often surface, ultimately costing you much more over time.
After years of analyzing 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
Basic antivirus software does not equal comprehensive cybersecurity.
Many budget IT providers stop at installing simple antivirus and call it complete protection. They often skip essential features like two-factor authentication, advanced endpoint detection, employee cybersecurity training, and backup defenses.
Why is this critical? Cyber insurance companies now require robust cybersecurity protocols before issuing policies, and lacking these can lead to claim denials after an incident.
We've witnessed businesses face tens of thousands in losses because their MSP failed to implement the cybersecurity safeguards their insurance demanded. This is not just poor service — it’s negligence.
2. Insufficient Backup Coverage Leaving Critical Data At Risk
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace provide full data backups.
In reality, these services offer only basic backup functions and do not serve as comprehensive disaster recovery or long-term data retention solutions.
Low-cost or inexperienced IT providers often neglect backups for cloud applications, CRMs, and third-party platforms, leaving vital information vulnerable. Even more concerning, many fail to provide immutable backups, a critical requirement for many cyber insurance policies today.
Think your data is safe? Ask your current provider exactly what is backed up — and what isn't.
3. Unexpected Charges for On-Site or After-Hours Support
A common tactic is to advertise a low monthly fee, but then add extra charges whenever you require support outside normal business hours or need an in-person visit.
We advocate for transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency support from their base plans so they can add fees later.
The consequence? You hesitate to reach out for help, and your team delays contacting support, resulting in costly downtime.
4. No Support for Vendors or Third-Party Devices
If you encounter issues with phones, internet, or security cameras, some IT companies will simply say, "That's not our responsibility."
They may even bill you hourly just to communicate with other vendors. And if a device like your printer isn’t on their "approved" list, they might refuse assistance altogether.
We offer comprehensive vendor coordination and network support for all technology integral to your business, because problems can arise from multiple sources.
5. Unskilled Technicians and Lack of Dedicated Account Management
A major warning sign is a "one-person operation" or a company that hires inexperienced techs on a contract basis without a clear support strategy.
With budget MSPs, you might receive assistance, but you won’t get strategic guidance.
What you deserve is:
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A dedicated account manager to help you develop a tailored technology roadmap
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Regular, proactive evaluations of your cybersecurity, compliance, and backup systems
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Budget planning and technology upgrade forecasting
● A trusted advisor — not just a help desk ticket processor
Final Thought: If It Seems Too Good To Be True, It Usually Is.
Many small businesses remain unaware they are inadequately protected until a crisis hits — whether it’s a ransomware attack, server failure, or costly compliance violation.
By then, it’s often too late.
If you want IT services that truly safeguard your business, look beyond the monthly rate. Ask tough questions, demand honest answers, and avoid contracts that leave you vulnerable.
If you’re curious about what your current IT contract might be missing, let us evaluate your network. We’ll provide a complimentary review of your IT solutions, highlight any gaps, and offer straightforward advice on how to strengthen your defenses — all with no jargon.
Click here or call us at (646) 989-9900 to schedule your FREE Business Technology Alignment Assessment.
