Some MSP contracts have hidden fees due to unclear service definitions, additional charges for exceeding agreed limits, or undisclosed costs for optional services. These fees often arise from poor transparency or deliberate attempts to upsell services.
Common reasons for hidden fees in MSP contracts
Vague service definitions
- Contracts may not clearly define what is included in “basic” or “standard” services.
- Ambiguities allow MSPs to charge extra for services assumed to be included.
Overage charges
- Exceeding user, device, or bandwidth limits often results in additional fees.
- Unclear thresholds for usage can lead to unexpected costs.
Optional services not disclosed upfront
- Some MSPs charge extra for services like on-site support, advanced cybersecurity tools, or employee training.
- These add-ons might not be highlighted during initial discussions.
Setup and onboarding fees
- One-time charges for implementation or onboarding may not be disclosed until after signing the contract.
- These costs can include software licensing, initial assessments, or hardware configurations.
Emergency or after-hours support
- Some contracts exclude 24/7 support, leading to additional charges for after-hours assistance.
- Emergency response times may carry premium fees not outlined upfront.
Hardware or software costs
- While MSPs often manage IT infrastructure, the cost of new hardware or software licenses might not be included.
- Businesses might need to pay separately for upgrades, repairs, or new installations.
Compliance-related services
- Services for regulatory compliance, such as audits or documentation, may be treated as add-ons.
- These costs can surprise businesses in regulated industries like healthcare or finance.
Lack of contract transparency
- Complex or lengthy contracts may intentionally obscure additional fees.
- Businesses might overlook hidden clauses due to confusing terms.
How to avoid hidden fees in MSP contracts
- Request detailed service descriptions: Ensure all included services and limitations are clearly outlined.
- Understand overage policies: Confirm usage limits and the costs for exceeding them.
- Clarify optional services: Ask upfront about potential add-ons and their fees.
- Review the SLA carefully: Look for clauses related to response times, after-hours support, or emergency services.
- Seek a transparent provider: Choose MSPs with a reputation for clear and straightforward contracts.
Ready for an MSP with no hidden fees?
Medha Cloud offers transparent contracts with clear pricing for managed IT services.
