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

The Hidden Cost Of “Cheap” IT

July 06, 2025

You've heard the phrase: you get what you pay for. This is especially true in the world of IT.

At first glance, opting for a budget managed IT service might seem like a smart move—lower monthly fees, basic support, and maybe some cybersecurity features included. But if you look closer, hidden expenses, limited coverage, and critical omissions often emerge, ultimately costing you much more than expected.

Having reviewed countless IT contracts for small businesses over the years, we've identified recurring pitfalls. 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 alone does not equate to solid cybersecurity.

Yet many low-cost IT providers stop there—no two-factor authentication, no advanced endpoint detection, no employee cybersecurity training, and no backup safeguards in case of breach.

Why is this critical? Cyber insurance companies now mandate advanced cybersecurity protocols before issuing policies. Without these, your claim could be denied after an incident.

We've seen companies lose tens of thousands because their MSP failed to implement the necessary protections their insurance required. This isn't just poor IT support—it's 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 services only provide basic backup functions and are not designed for comprehensive disaster recovery or long-term retention.

Budget or inexperienced IT providers often neglect backups for cloud apps, CRMs, and third-party tools, leaving vital data exposed. Even more concerning, many lack immutable backups, now a requirement for many cyber insurance policies.

Think your backups are secure? Ask your provider exactly what's being backed up—and what isn't.

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

A common tactic is to advertise a low monthly fee, then add extra charges whenever you require support outside regular business hours or need someone on-site.

We believe in transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency support from their base fees to bill you later.

The fallout? You hesitate to call for help, your team delays reporting issues, and downtime costs escalate.

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

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

They may charge hourly fees just to liaise with your other vendors, and if your printer or other hardware isn't on their approved list, they might refuse assistance altogether.

We provide comprehensive vendor coordination and network support for all technology connected to your business, recognizing that issues can arise from multiple sources.

5. Unseasoned Technicians and No Dedicated Account Management

A major warning sign is a "one-person operation" or a provider relying on entry-level technicians without a strategic support plan.

With budget MSPs, you might receive reactive help, but you miss out on proactive guidance.

What you deserve is:

A dedicated account manager crafting a clear technology roadmap

Regular, proactive evaluations of your cybersecurity, compliance, and backup systems

Forecasting budgets and planning upgrades ahead of time

A trusted advisor relationship—not just a support ticket system

Final Thought: If It Seems Too Good to Be True, It Probably Is.

Most small businesses don't realize their IT is underprotected until disaster strikes—whether that's a ransomware breach, server failure, or hefty compliance penalty.

By then, the damage is done.

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

Curious about what your current IT contract might be missing? Let us analyze your network. We offer a free review of your IT solutions, identify any gaps, and provide straightforward, jargon-free advice on how to strengthen your defenses.

Click here or call us at 1300 765 014 to schedule your FREE 15-Minute Discovery Call.