Sad IT professional next to $99/month price tag with downtime, ransomware, compliance, and data loss risks.

The Hidden Cost Of “Cheap” IT

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, choosing a low-cost managed IT service might seem like a smart move—lower monthly fees, basic support, and maybe some cybersecurity tools included. But look closer, and you'll often uncover hidden charges, limited coverage, and exclusions that end up costing your business far 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 those shortcuts can lead to expensive problems for your company.

1. Insufficient or Missing Cybersecurity Measures

Basic antivirus software alone does NOT equate to proper cybersecurity.

Yet many low-cost IT providers stop there—no two-factor authentication, no advanced endpoint protection, no staff training, and no backup defenses for breaches.

Why is this critical? Cyber insurance providers now mandate robust cybersecurity before issuing policies. Without adequate protection, your insurance claims could be denied after an attack.

We've witnessed businesses lose tens of thousands because their MSP failed to implement the required safeguards. This isn't support—it's negligence.

2. Incomplete Backup Solutions That Risk Your Data

Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace provide full data backups.

In reality, these platforms offer only basic backup capabilities—not comprehensive disaster recovery or long-term data retention.

Budget or inexperienced IT providers often neglect backups for cloud apps, CRMs, and third-party tools, leaving vital data vulnerable. Even worse, many omit immutable backups, now a requirement for most cyber insurance policies.

Think your data is safe? Ask your provider exactly what they back up—and what they leave out.

3. Unexpected Charges for On-Site Visits and After-Hours Support

Here's a common tactic: advertise a low monthly rate, then add fees whenever you need help outside regular business hours or require an on-site visit.

We advocate for transparent, flat-rate pricing. However, many providers exclude on-site service, after-hours assistance, and emergencies from their base fees to charge extra later.

The consequence? You hesitate to call for support, and your team delays seeking help, which only increases costly downtime.

4. Lack of Support for Vendors and Third-Party Devices

Problems with phones, internet, or security cameras? Some IT companies will simply say, "That's not our responsibility."

They may even bill you by the hour just to communicate with other vendors. If your printer or other devices aren't on their "approved" list, they might refuse to assist altogether.

We provide comprehensive vendor coordination and network support for all technology impacting your business, because issues 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 clear support strategy.

With budget MSPs, you might receive assistance, but lack strategic guidance.

What you deserve is:

A dedicated account manager who crafts a tailored technology roadmap

Regular proactive reviews of your cybersecurity, compliance, and backup integrity

Budget planning and technology upgrade forecasting

A trusted IT advisor—not just a help desk ticket system

The Bottom Line: If It Seems Too Good to Be True, It Probably Is.

Most small businesses don't realize their IT protections are insufficient until disaster strikes—whether that's a ransomware breach, server failure, or costly compliance penalty.

By then, it's often too late.

If you want IT services that truly safeguard your business, look beyond the price tag. Ask tough questions, demand honest answers, and avoid contracts that leave you vulnerable.

If you're unsure about your current IT contract, let us evaluate your network. We'll provide a free assessment, identify any gaps, and offer clear, jargon-free recommendations to strengthen your defenses.

Click here or call us at 866-523-2985 to schedule your FREE 15-Minute Discovery Call.