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 rings especially true in the world of IT.

At first glance, opting for a low-cost managed IT service might seem like a smart move—lower monthly fees, basic support, and some cybersecurity features included. But if you look closer, hidden fees, limited coverage, and crucial exclusions often lurk beneath, leading to far greater expenses down the road.

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 those shortcuts can turn into expensive problems for your business.

1. Insufficient or Missing Cybersecurity Measures

Basic antivirus alone is not adequate cybersecurity.

Yet many budget IT providers stop there, offering no two-factor authentication, no advanced endpoint security, no employee awareness training, and no backup protections in case of breaches.

Why is this critical? Cyber insurance providers now mandate advanced cybersecurity protocols before issuing policies. Without them, your claims risk being denied after an incident.

We've witnessed businesses lose tens of thousands of dollars because their MSP failed to implement the necessary protections required by their insurance. This isn't just poor service—it's outright negligence.

2. Incomplete Backup Solutions 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 provide only basic backup capabilities—not comprehensive disaster recovery or long-term data retention.

Low-cost or inexperienced IT providers often neglect backups for cloud applications, CRMs, and third-party tools, leaving vital data vulnerable. Even worse, many fail to offer immutable backups, now a requirement for numerous cyber insurance policies.

Think your data is secure? Ask your current provider exactly what is—and isn't—being backed up.

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

A common tactic is to lure you in with a low monthly fee, then add extra charges whenever you require support outside regular hours or need an on-site visit.

We advocate for transparent, flat-rate pricing. But many providers exclude on-site visits, after-hours assistance, and emergency support to add surprise fees later.

The outcome? You hesitate to call for help, your team delays reporting issues, and downtime—and costs—skyrocket.

4. Refusal to Assist with Vendors or Third-Party Equipment

Problems with your phones, internet, or security cameras? Some IT companies simply say, "That's outside our scope."

They may charge you hourly just to liaise with other vendors, or refuse service if your devices aren't on their "approved" list.

We provide comprehensive vendor coordination and network support for all technology integral to your business, because issues rarely stem from a single source.

5. Underqualified 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 strategic support plan.

Budget MSPs might offer assistance but rarely provide strategic guidance.

What you deserve is:

● A dedicated account manager to help craft your technology roadmap

● Regular, proactive assessments of your cybersecurity, compliance, and backup systems

● Budget planning and upgrade strategy

● A trusted advisor—not just a ticketing system for tech support

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

Most small businesses don't realize their IT protections are inadequate until disaster strikes—be it ransomware, server failure, or costly compliance penalties.

By then, the damage is done.

If you want IT services that truly safeguard your business, look beyond just the price. Ask tough questions. Demand clear answers. Don't get trapped in a contract that leaves you vulnerable.

Curious about what your IT contract might be missing? Let us evaluate your network. We'll provide a free review of your current IT setup, identify any gaps, and offer straightforward, jargon-free advice on how to protect your business better.

Click here or call us at (918) 770-9150 to schedule your FREE 15-Minute Discovery Call.