You know the saying: You get what you pay for. Nowhere is that more obvious than in technology—especially when it comes to cheap managed IT services.

On the surface, signing with a budget MSP (Managed Services Provider) might seem like a financial win. Lower monthly costs. Basic support. Maybe even a few cybersecurity tools thrown in for good measure. But behind that low price tag are hidden costs, missing services, and security gaps that could cost your business tens—or hundreds—of thousands down the line.

As a trusted IT partner for small and mid-sized businesses, we’ve reviewed dozens of “bargain” MSP contracts. We see the same five red flags again and again—and they’re all too easy to miss until it’s too late.

1. Weak (or Nonexistent) Cybersecurity Protections

A cheap provider will often install basic antivirus software and call it “cybersecurity.” But modern threats require much more.

No multi-factor authentication. No endpoint detection and response (EDR). No employee security training. No regular patching or vulnerability scanning. No backup defense plan.

And here’s the kicker: most cyber insurance providers now require advanced protections. Without them, your claim after an attack could be denied—even if you were paying for “IT support.”

Real talk: We’ve seen businesses suffer six-figure losses because their MSP failed to implement the very safeguards insurance policies require. Learn more from CISA about why cybersecurity is non-negotiable.

2. Backups That Don’t Actually Back You Up

Many small business owners assume platforms like Microsoft 365 or Google Workspace automatically back up all their data.

They don’t.

These platforms have basic retention policies, but they’re not designed for disaster recovery or long-term archiving. Budget IT providers often skip backups for CRMs, cloud applications, and third-party systems—and rarely offer immutable backups, which are becoming a cyber insurance requirement.

Want to test your coverage? Ask your current provider to list exactly what they’re backing up—and what they’re not.

3. Surprise Fees for On-Site or After-Hours Support

Here’s a common tactic: quote a low monthly price, then tack on fees every time you call after 5 p.m. or need an on-site visit.

The result? Your staff delays asking for help, leading to longer downtime and lower productivity—exactly the thing your IT provider is supposed to prevent.

At Iler Networking & Computing, we believe in transparent, flat-rate pricing so you’re never penalized for needing support.

4. No Help with Vendors or Third-Party Devices

What happens when your internet goes out? Or your phones crash? Or your security cameras stop recording?

If you’re working with a discount MSP, the answer might be: “Not our problem.”

Vendor management is often excluded from cheap managed IT services. And if your equipment wasn’t purchased through their narrow list of “approved” devices, you may be on your own.

We take a different approach: if it connects to your network, we help support it—full stop.

5. Entry-Level Techs and No Strategic Oversight

Many low-cost MSPs are little more than a rotating cast of freelancers or a single overwhelmed tech with no backup. You might get someone who can fix your printer, but no one to help you plan for the future.

That’s a problem.

You deserve:

• A dedicated account manager who understands your goals

• Quarterly technology reviews and roadmap planning

• Proactive compliance, cybersecurity, and backup audits

• An advisor—not just a break/fix technician

The Bottom Line: If It Looks Too Good to Be True, It Is

Most small businesses don’t realize they’re under protected until it’s too late—a ransomware attack, a server failure, a surprise compliance audit.

And by then? The real cost of those “cheap managed IT services” hits hard.

Don’t gamble with your business’s future.

If you want to know what corners your current IT provider might be cutting, let us take a look—no strings attached. We’ll review your network, assess your risk, and give you a plain-English breakdown of what’s missing and how to fix it.

Book your FREE IT Risk Assessment now and get peace of mind from a team that puts protection before profits.