Are IT Projects Really Included in Managed Services — and What’s the Catch?
Short Answer: Yes, But Not With Most MSPs
Yes — some managed service providers include IT projects in their monthly fee, but most do not.
In the South of Boston, MA market, traditional MSPs charge $150–$225 per hour for projects like migrations, upgrades, and security improvements. MSPs that include projects typically charge $225–$275 per user per month to eliminate surprise costs and reduce long-term IT spending.
The “catch” isn’t hidden fees — it’s qualification and control.
What Most MSPs Mean by “Projects”
When MSPs talk about projects, they usually mean:
- Server replacements
- Network upgrades
- Cloud migrations
- Security remediation
- Office moves or expansions
- New computers
In most cases, these are not included in the monthly fee and are billed separately, even if the issue was caused by aging infrastructure or security gaps.
How Traditional Project Billing Really Works
With a traditional MSP model:
- Monthly fees cover basic support
- Projects are billed separately
- Hourly rates range from $150–$225
- Fixed-fee projects often include change orders
For firms with 25–80 employees, annual project spending often reaches $20,000–$40,000, depending on infrastructure age and security requirements.
This is why “cheap” monthly fees often result in higher annual IT costs.
How Included-Project Models Actually Work
MSPs that include projects operate differently:
- Higher monthly fee
- Standardized, secure environments
- Proactive planning instead of reactive upgrades
- MSP controls the technology stack
The key requirement:
You can’t include projects if you don’t control the environment.
This model allows MSPs to improve systems continuously without constant approvals or invoices.
What Isn’t Included (And Why)
Even with project-inclusive models, some work is typically excluded:
- New office locations
- Mergers and acquisitions
- Net-new business initiatives
- Non-standard or unsupported software
These exclusions exist because they introduce new scope and risk, not because of hidden fees. Clear boundaries protect both the client and the MSP.
When Included Projects Reduce Total Cost of Ownership
For professional services firms, included projects often lead to:
- Faster infrastructure modernization
- Fewer security gaps
- No surprise invoices
- Better long-term planning
Over 12–24 months, firms often spend less overall compared to project-based billing, while experiencing fewer disruptions.
Client Example
A 30-employee professional services firm previously spent $25,000–$40,000 per year on IT projects.
After moving to a $245 per user per month fully managed plan with projects included:
- Annual project costs dropped to $0
- Infrastructure upgrades were completed proactively
- Downtime during upgrades was minimized
- IT budgeting became fully predictable
The firm reduced risk while simplifying decision-making.
Why Some MSPs Include Projects
MSPs that include projects focus on:
- Long-term client relationships
- Stable, secure environments
- Predictable outcomes
- Shared incentives for improvement
When the MSP is responsible for results, it makes sense to remove barriers to fixing problems.
Final Thought
Including projects in managed services isn’t a gimmick — it’s a different operating model.
For professional services firms that value predictability, reduced risk, and proactive improvement, project-inclusive managed IT often delivers a lower total cost of ownership and fewer headaches.