July 07, 2025
You've heard the phrase: You get what you pay for. This couldn't be truer in the world of IT.
At first glance, a low-cost managed IT service plan might appear to save you money with reduced monthly fees and basic support, possibly including some cybersecurity features. But a closer look often reveals hidden expenses, limited coverage, and critical exclusions that can cost your business significantly 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 lead to expensive problems down the road.
1. Insufficient or Missing Cybersecurity Protections
Basic antivirus software alone does not constitute comprehensive cybersecurity.
Yet many low-priced IT providers stop there, offering no multi-factor authentication, advanced endpoint detection, employee cybersecurity training, or backup defenses in case of breaches.
Why is this critical? Cyber insurance companies now mandate robust cybersecurity measures before issuing policies, and lacking these protections can result in denied claims following an attack.
We've witnessed businesses lose tens of thousands of dollars because their MSP failed to implement the necessary security protocols required by their insurance. This isn't just poor service—it’s reckless negligence.
2. Incomplete Backups That Endanger Your Data
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace automatically back up all their data.
In reality, these services provide only basic backup capabilities and are not designed for full 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. Even more concerning, many do not offer immutable backups, a requirement for numerous cyber insurance policies today.
Unsure about your backup coverage? Ask your current provider exactly what data is being backed up—and what is not.
3. Hidden Charges for On-Site and After-Hours Support
Here's a common bait-and-switch: a low monthly fee is quoted, but additional charges apply every time you require support outside regular business hours or need an on-site visit.
We advocate for transparent, flat-rate pricing. Unfortunately, many providers exclude on-site visits, after-hours assistance, and emergency support from their base fees, tacking on extra costs later.
The outcome? You hesitate to seek help, and your team delays support calls, which only increases costly downtime.
4. No Assistance with Vendors or Third-Party Devices
Problems with your phones, internet, or security cameras? Some IT companies will simply say, "That’s outside our scope."
They might even charge you by the hour just to coordinate with other vendors. If your printer or other hardware isn't on their "approved" list, they may refuse support altogether.
We provide comprehensive vendor coordination and network support for all technology impacting your business, because issues often span multiple systems.
5. Unskilled Technicians and Lack of 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 receive reactive help, but not proactive guidance.
What you deserve is:
● A dedicated account manager to develop your technology roadmap
● Regular assessments of your cybersecurity, compliance, and backup status
● Budget planning and upgrade forecasting
● A trusted advisor, not just a tech support ticket responder
Final Thought: If It Seems 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 penalty.
By then, recovery is expensive and stressful.
If you want IT services that truly safeguard your business, focus beyond just the monthly cost. Ask detailed questions, demand clear answers, and avoid contracts that leave you exposed.
Curious about what your current IT contract might be missing? Let us evaluate your network at no charge. 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 503-210-5203 to schedule your FREE Systems Assessment.
