July 06, 2025
You've heard the phrase: You get what you pay for. This couldn't be truer than in the world of IT.
At first glance, a low-cost managed IT service plan might seem appealing—offering reduced monthly fees, basic support, and possibly some cybersecurity features. But when you look closely, hidden expenses, limited coverage, and loopholes often emerge, resulting in much higher costs down the line.
After years of analyzing IT contracts for small businesses, we consistently notice recurring pitfalls. Here are five common ways budget MSPs cut corners—and how these shortcuts can lead to expensive headaches for business owners.
1. Insufficient or Absent Cybersecurity Measures
Simple antivirus software does not equate to full cybersecurity coverage.
Yet many budget IT providers install only basic antivirus and call it a day—no two-factor authentication, advanced threat detection, cybersecurity training, or contingency plans if an attack gets through.
Your cyber insurance provider now requires robust cybersecurity protections before issuing policies. Missing these safeguards can lead to denied claims after an incident.
We've witnessed companies lose tens of thousands because their MSP failed to implement the necessary protections their insurance demanded. That's not IT support—that's neglect.
2. Incomplete Backup Solutions That Risk Your Data
Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace automatically secure their data.
In reality, these tools provide only minimal backup capabilities—not comprehensive disaster recovery or long-term data retention.
Cheap or inexperienced IT services often neglect backing up cloud apps, CRMs, or third-party software, leaving vital information exposed. Moreover, many do not offer immutable backups, now mandatory for many cyber insurance requirements.
Wondering if your backups are truly protected? Ask your current provider which systems and data are included—and what isn't.
3. Unexpected Charges for On-Site and Off-Hours Support
Here's a common bait-and-switch: advertise a low monthly fee, then charge extra whenever you need support outside regular hours—or require an on-site visit.
We advocate transparent, all-inclusive pricing. But many MSPs exclude on-site, after-hours, and emergency support so they can add fees later.
This leads to hesitation when calling for help, causing delayed response times and increased downtime costs.
4. No Assistance With Vendors or Third-Party Devices
Experiencing issues with your phones, internet, or security cameras? Some IT providers will simply say, "That's outside our scope."
They may even bill you hourly just for liaising with other vendors. If a device isn't on their approved list, like your network printer, they might refuse assistance altogether.
We deliver full vendor coordination and network support for all technology that powers your business, understanding that issues can originate anywhere.
5. Underqualified Technicians and Lack of Account Management
A major warning sign is a "one-person operation" or teams relying on entry-level contractors without a strategic support plan.
With budget MSPs, you might get some assistance, but rarely proactive guidance.
What you deserve is:
● A dedicated account manager who collaborates with you to craft a tailored technology roadmap
● Regular proactive assessments of your cybersecurity defenses, compliance status, and data backup integrity
● Detailed budget planning and upgrade strategies
● A trusted advisor focused on partnership—not just a help desk ticket system
Bottom Line: If It Seems Too Good to Be True, It Probably Is.
Most small businesses remain unaware of their IT vulnerabilities until disaster strikes—whether a ransomware attack, server failure, or costly compliance penalty.
By then, damage is already done.
If you want reliable IT solutions that truly protect your business, don't just shop based on price. Ask detailed questions, demand transparent answers, and avoid contracts that leave you exposed.
If you're curious about what your current IT contract may be missing, let us analyze your network. We'll perform a free review of your existing IT infrastructure, highlight any gaps, and provide straightforward, jargon-free advice on how to safeguard your operations.
Click here or call us at 1300 136 410 to schedule your FREE 15-Minute Discovery Call.
