What Should An MSP Charge

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What Should An MSP Charge

How much should you be paying for your Managed IT Solution? 

When businesses evaluate a potential purchase or investment, cost is always a key consideration. However, opting for the lowest price can often lead to false savings, especially when selecting an IT support provider. In this industry, choosing a bargain option may expose your business to unnecessary risks. It’s essential to remember the old adage: “If something sounds too good to be true, it likely is”.

Award Winning Managed IT Solutions for SMEs

What is a Good Deal? £25 per user, per month, for a Managed IT solution that includes proactive monitoring, “cyber protection” and unlimited support  – that sounds like a great deal, right?

Award Winning Managed IT Solutions for SMEs

Consider a small business with 15 users, and at £25 per user that’s £375 a month for a ‘Managed IT’ service – a good investment? But what does that £375 actually get you? A traditional ad-hoc IT support service typically costs £80 to £120 per hour – an MSP will use the same skilled technicians, so their rates are calculated on comparable labour costs, albeit assumed, plus any labour costs associated with ‘Monitoring’ an organisation, as well as any ‘Proactive Support’, plus any ‘Cyber Security’ software included in that £25 price point. 

Assuming they have the appropriate resources, that £375 equals a maximum of 4 hours support over the entire month, with at least a couple of hours needed for reactive support. And whilst the cost of their supplied software can vary, we’ll assume they’ve invested an appropriate amount to ensure your organisation is protected? So what’s left from that £375 to ‘proactively monitor’ and ‘maintain’ your organisations IT infrastructure, as well as further support and give you the confidence your IT and your business is in safe hands? 

At this point, you might be reconsidering whether that £25 per user is really such a ‘great deal, and whilst not every business needs the full suite of services that an enterprise-level MSP offers, there are budget-friendly, co-managed options. However, whoever you choose as your MSP, you’re selecting a partner—not just making a cost-saving decision. Even if you’re not using all their services, knowing they have the skills and resources in place (and you’re being billed appropriately) should give you confidence in their support.

Let’s explore a little more why cutting corners on IT support could ultimately cost you more in the long run…

Cheap Service or Genuine Partnership?

A low-cost Managed Service Provider (MSP) usually reflects the quality of service they can offer. Just because two MSPs claim to offer managed services doesn’t mean their offerings are equal. Take the time to dig deeper into what you’re really getting. A true IT partner will provide more than just basic support—they’ll be aligned with your business goals and work proactively to enhance your operations.

Lack of Resources Hurts Your Growth

Is the MSP a one-person operation? While small businesses can certainly deliver excellent services, they may not have the capacity to fully support a growing client base. There are only so many hours in a day, and insufficient staffing could limit their ability to address your needs promptly. You need a provider with the right resources and expertise to not only solve problems quickly but also contribute to your business’s long-term growth, not slow it down.

Proactive Protection Is Essential

A cheap MSP often lacks the infrastructure to proactively monitor and protect your business. While having a helpdesk for reactive support is useful, it’s far more important to have systems in place to prevent issues before they occur. The best IT support companies invest in top-tier monitoring and security tools that detect and address potential problems early—often resolving them before they affect your productivity. Regular updates, patches, and security measures are crucial to ensuring your data is safe and your technology runs smoothly.

Outgrowing Your IT Provider

A low-cost MSP may struggle to keep up as your business grows. They often lack the resources and expertise to scale their services at the pace you require. You need an IT provider capable of evolving alongside your business, offering flexible solutions that meet your expanding needs.

Long-Term Value Over Short-Term Savings

Focusing solely on cost can lead to overlooking long-term value. While a cheaper MSP might save you money upfront, the hidden costs of downtime, security breaches, or inefficiencies can quickly outweigh any initial savings. A reliable IT partner, even if it comes at a higher price, provides peace of mind and better return on investment by helping your business operate smoothly, securely, and efficiently.

Investing in Expertise Ensures Stability

Your IT provider should be more than just a vendor—they should be an extension of your team. A provider with skilled technicians and proven expertise can ensure stable, uninterrupted business operations. They will have the tools, processes, and resources necessary to not just respond to issues, but to prevent them, so your team stays focused on what they do best.

What to Expect

Our ‘Enterprise’ Managed IT Solution ensures that Users are provided with a guaranteed level of support, as well as providing 24/7 Monitoring and protection for your systems and data, with our Pro, Essentials and StarterCare solutions also offering a range of features, ensuring the right fit for your business – and depending on your requirements, you can complement your Managed IT service with our Add-Ons.

Enterprise – Managed IT

Pro – Managed IT

Essentials – Managed IT

There’s no such thing as too much support – but if Managed IT is new to you, or you’re looking for a more streamlined option, our StarterCare plan is a great place to begin. Designed for microbusinesses or those just starting their IT journey, our StarterCare plan gives you access to our award-winning IT support and a 24/7 Online Service Desk – all at an accessible price point.

While remote support is included, it’s intended for light-touch environments and subject to fair use. For more frequent or advanced support needs, our Essentials plan includes unlimited remote assistance, faster SLAs, and a more proactive service experience.

Take a look at what StarterCare includes below, and also our Cloud Suites and Cyber Suite Add-Ons.

StarterCare – Managed IT

Cloud Suite ’25 (add-on)

Cloud+ Suite ’25 (add-on)

Cyber+ Suite ’25 (add-on)

Which bundle/Microsoft Plan is the best fit for your organisation? It really depends on your specific needs and priorities, but here are some factors to consider when making your decision:

Company size: If your organisation has between 10 and 300 users and requires a comprehensive productivity suite with built-in security and device management features, Business Premium (included as part of our Cloud+ Suite) is likely the better option. However, if you have more than 300 users or anticipate rapid growth, M365 E3 / E5 may be a better fit (as an upgrade to our Cloud+ Suite). 

If you have less than 10 users and are not overly concerned about management features, our Cloud Suite (including Microsoft 365 Standard) should be adequate – and you always have the option of upgrading to our Cloud+ Suite if your requirements change…

Security and compliance needs: If your organisation has strict compliance requirements or needs advanced security features, Business Premium has a strong set of tools included, but E3 provides a more viable upgrade path to E5 security and compliance.

Budget: Business Premium is generally more affordable than E3, making it an attractive choice for cost-conscious SMBs. However, its worth checking the benefits of M365 E3’s advanced features against the additional cost to determine the best value for your organisation.

Per User Licensing & Device Policy

  • All plans are priced per registered user and include support for one primary device (e.g. a workstation or laptop).
  • Additional devices (e.g. a laptop and a workstation) can be added for a supplementary charge.
  • All users, devices, and computers within the organisation — including contractors using company-provided hardware or software — must be included in your plan.
  • All users within the same organisation must be subscribed to the same plan tier.
  • Hot Desks are treated as a single device per registered user. No discounts apply for users sharing a workstation.

 

Project Work & Exclusions

Support coverage includes day-to-day reactive and proactive assistance for users and supported devices, such as resolving faults, maintaining systems, and ensuring general IT health. However, support does not cover project-based work, including (but not limited to):

  • New workstation setups or user onboarding
  • Client-initiated software rollouts or upgrades
  • Infrastructure changes (e.g. server, firewall, or network installs)
  • Office moves or reconfigurations
  • Major system migrations or integrations

These services are treated as separate, billable projects, unless explicitly included under a Service Day allowance or quoted separately in writing.

 

Microsoft 365 Support & Licensing

  • Businesses using Microsoft 365 Business services (including Exchange, SharePoint, OneDrive, Entra, and Office apps) will incur a £6/month ‘Microsoft 365 Admin Support’ fee per registered user.
  • This fee is waived if ‘Managed’ Microsoft 365 licences are purchased through ITCS Global, either individually or via our Cloud Suites.

 

Cloud & Cyber Suite Compatibility

  • The Cloud Suite add-on is available with Essentials, Pro, and Enterprise plans.
  • Cloud+ Suite and Cyber+ Suite are only available with Pro and Enterprise plans.
  • Clients enrolled in any Suite (Cloud, Cloud+, or Cyber+) will be automatically upgraded to the latest version (e.g. from Cloud+ Suite ‘24 to Cloud+ Suite ‘25) when it is released.
  • This upgrade may occur during your existing contract and may result in additional charges due to new features or licensing updates.

 

Fair Usage Policy & Custom Solution Surcharge

  • All “unlimited support” is subject to a Fair Usage Policy:
  • A Custom Solution Surcharge may apply for clients who:
  • Have unusually complex infrastructures,
  • Consistently require above-average user support, or
  • Experience repeated security incidents due to not implementing recommended security solutions, resulting in a low Risk Mitigation Score (reviewed quarterly).
  • Note: Over 95% of customers are NOT affected by this surcharge.

 

Onsite Support Terms

  • Plans that include onsite support are limited to 1 incident per week per 10 users.
  • Additional onsite support (including “Discounted Onsite Support”) is billed at 50% of standard onsite rates.
  • For onsite visits within Central London, a £20/hour surcharge applies.
  • Workstation installations (e.g. for new users or hardware upgrades) are treated as billable projects, unless carried out under accrued Service Days.

 

Service Days (Enterprise Plan Only)

  • Service Days accrue at a rate of 0.5 days per 10 users per month, capped at 1 day per week.
  • Unused Service Days do not carry over from month to month.

 

SLA Hours & Response Times

  • Plan Tier Business Hours
    Standard Mon–Fri, 9:00am – 5:00pm
    Pro Mon–Fri, 8:00am – 6:00pm
    Enterprise Mon–Sat, 8:00am – 8:00pm
  • Phone Response and Ticket SLA times are estimated and based on historical service data from January 2024 to October 2024. These are not guaranteed.

 

StarterCare Plan Specifics

  • StarterCare is only available to new customers.
  • It is limited to small/micro businesses (up to 9 users).
  • Existing customers are not eligible to downgrade to StarterCare.
  • RMM monitoring under StarterCare focuses on essential system health indicators, with a reduced number of checks compared to our Essentials, Pro, and Enterprise plans.
  • Remote support under the StarterCare plan limited, capped at a maximum of 2 remote support incidents per user, per calendar month. Additional incidents may be billed at our standard hourly support rate or may require an upgrade to a higher support tier.

 

Contract Terms, Renewals & Onboarding

  • All Managed IT & Support Plans have a minimum initial term of 12 months, and are billed monthly in advance of the covered month.
  • Contracts automatically renew on their anniversary date:
  • Essentials, Pro, and Enterprise Plans renew on a rolling 3-month minimum term, unless cancelled with notice.
  • StarterCare Plans renew for a full 12-month term, unless cancelled prior to the renewal date.
  • Each Managed IT & Support Plan carries a minimum monthly billing commitment equivalent to 5 registered users, irrespective of the number of users onboarded
  • Add-ons that include annual-commitment licences (e.g. Microsoft 365) remain active until the licence period ends.
  • If a support plan is cancelled before these licences expire, they will be billed at our standard standalone rates for the remaining term.
  • An onboarding fee is applicable for all Managed IT Plans and Cloud Suites, charged at a rate equivalent to the full monthly subscription cost (per user/device), and is payable in advance. Any required onsite onboarding for StarterCare or Essentials plans will be billed separately at standard onsite rates, in addition to the standard onboarding fee.

 

Price Adjustments

  • ITCS Global reserves the right to apply a standardised annual price increase of up to 15%, typically between January and March.
  • This increase is not linked to your contract anniversary.
  • New clients are exempt from any price rise during their first 12 months.

 

Terms and Conditions are subject to change without notice. Please contact us if you have any questions regarding the above.