When evaluating IT service options, many businesses find themselves choosing between a break-fix model and a managed services approach. At its core, this decision comes down to how proactive you want your IT support to be—and how much risk your organization can tolerate when it comes to downtime, data loss, and reactive problem-solving.
With break-fix, companies pay only when something goes wrong. While this can seem cost-effective up front, but can lead to unpredictable expenses, delayed fixes, and more issues down the road. On the other hand, managed services provide ongoing, proactive information technology (IT) support for a fixed monthly fee. This model emphasizes continuous monitoring, maintenance, and prevention—keeping systems stable, secure, and aligned with long-term business goals.
When deciding which model is right for your organization, consider factors like your internal IT capacity, budget, and need for short vs long-term strategic IT planning. The choice can significantly impact your team’s productivity, security posture, and ability to scale with business growth.
What is Break-Fix Servicing?
The break-fix model is project-based to fix issues when there’s a problem. Only when something is broken is it repaired. As the name suggests: no break, no fix. Break-fix companies and their business model are all about solving problems as they appear and allowing company operations to continue afterward.
When an issue pops up that your company can’t resolve, the break-fix technicians are available and typically do not have service level agreements. In essence, the term “break-fix” refers to the fee for service method of providing technology services to businesses.
Using this method, the provider performs services as needed and bills the customer for the work done. The service typically includes repairs, upgrades or installation of systems/components, networking or software. It can be very difficult to manage costs for pay-as-you-go service. The more service you require, the more you are charged. Plus it’s a very reactive model to IT services. There is no incentive for the break-fix company to help you solve potential underlying issues.
Often small businesses encounter repeated IT problems like recurring downtime, poor response times or find they require a different level of service altogether. When service is poor and costs get out of hand, businesses choose to transition from a break-fix model of IT maintenance to a proactive model of IT services working with Managed Service Providers (MSP).
Pros of Break-Fix Servicing
- Pay-as-you-go flexibility: You only pay for services when something breaks, which may seem cost-effective for small or infrequent issues.
- No recurring fees: There are no monthly service charges, making budgeting simpler for very small businesses without ongoing IT needs.
- Freedom of vendor choice: You’re not locked into a contract, so you can switch providers if you’re unhappy with service or pricing.
Cons of Break-Fix Servicing
- Unpredictable costs: Emergency repairs and unplanned downtime can lead to sudden and significant expenses.
- Reactive, not proactive: Problems are only addressed after they’ve occurred, which can increase the risk of data loss, downtime, and security breaches.
- Longer resolution times: Technicians may not be immediately available, leading to extended periods of system downtime.
- No ongoing system optimization: Without regular monitoring or maintenance, systems may become outdated or vulnerable over time.
What are Managed IT Services?
Where break-fix companies exist to resolve problems, the other side of that coin is the managed services model whose mission is to ensure that there isn’t a problem to fix. The focus is on preventive, proactive and real-time maintenance; it doesn’t look at a single issue in the IT infrastructure but rather the IT infrastructure as a whole.
Think of your IT problem like it’s a stalled car. If your car stops running or is performing sluggishly, you take it in for repair. That’s break-fix. With managed IT services, mechanics are constantly checking on your car, while it’s working, so that it doesn’t break down.
With a proactive approach to IT, businesses pay monthly fees for service. It’s a recurring expense and service is provided within service level agreement (SLA) standards. A Managed Service Provider’s (MSP) goal is to prevent regular issues and company downtime.
Jesse Kuykendall, NetGain Technology OneSource expert, explains the difference between Managed Services vs. Break-Fix and the pros and cons of both.
Pros of Managed IT Services
- Proactive monitoring and maintenance: Issues are often detected and resolved before they disrupt operations, minimizing downtime.
- Predictable monthly costs: Fixed monthly pricing helps businesses better forecast IT expenses and avoid surprise repair bills.
- Improved cybersecurity: Managed service providers (MSPs) often include layered security solutions, compliance support, and ongoing risk management.
- Access to a team of experts: Instead of relying on one internal IT person, you gain access to a full team with varied expertise across multiple technologies. MSPs can also bring strong vendor relationships into the mix for even more support and expertise for IT planning and resolving issues.
- Scalability and strategic guidance: MSPs can scale services as your business grows and provide strategic technology guidance aligned with your budget and goals.
Cons of Managed IT Services
- Recurring monthly costs: Some businesses may see the ongoing subscription model as more expensive compared to ad-hoc support.
- Less control over day-to-day decisions: Relying on an external provider means giving up some direct control over IT systems.
- Service quality depends on provider: Not all MSPs offer the same level of support, expertise, or responsiveness—making provider selection critical.
- Contractual limitations: Service level agreements (SLAs) may limit what’s covered under the contract, with additional costs for out-of-scope work.
The Difference Between Managed Services vs. Break-Fix
Let’s compare managed services vs break fix. Imagine you own a home and wait for shingles to start missing, or a hole to appear in your roof before you take action. You wait until something happens as a sign to replace, and now you may have water damage too.
Now consider a second scenario where a team inspects your roof and home in its entirety on a recurring basis. Proactive notation of wear and tear, and other potential hazards help to appropriately budget within a timeline for replacement.
When we compare managed IT services vs break-fix, the analogies above present a stark contrast between the two. Like our home, the technology used in a business can become outdated, break down and require continuous maintenance to evolve based on the needs of the business.
Technology runs most of today’s business operations. Most technical experience has been deprecated or superseded by new technology within a few years after it’s released. Many break-fix models have one individual to consult on repairs and improvements (as opposed to a team of experts). This can lead to incorrect recommendations and missed opportunities.
FAQs About Break-Fix vs. Managed Services
What’s the main difference between break-fix and managed services?
The biggest difference is reactive vs. proactive support. Break-fix means you only call for IT help when something goes wrong, while managed services provide ongoing monitoring, maintenance, and support to prevent problems before they happen.
Is break-fix cheaper than managed services?
Break-fix may seem less expensive initially since you only pay when something breaks. However, unexpected issues, downtime, and emergency repair costs can add up quickly. Managed services offer predictable monthly fees and help reduce long-term costs by preventing problems and increasing uptime.
Do I need managed services if I already have an internal IT person?
Maybe! Many businesses use managed services to support or extend their internal IT team. An MSP can provide 24/7 monitoring, specialized expertise, and additional capacity, especially during PTO, after-hours incidents, or complex cybersecurity needs.
Which model is better for a growing business?
Managed services are typically a better fit for growing businesses because they offer scalability, proactive support, and strategic guidance. As your company adds users, locations, or technology, an MSP can help you scale efficiently and securely.
Can I switch from break-fix to managed services easily?
Yes. Many businesses transition from break-fix to managed services as they experience more frequent IT issues or want more stability. The switch involves onboarding and an assessment of your current environment, after which your MSP sets up monitoring tools and ongoing support processes.
Are managed services only for large businesses?
Not at all. In fact, small and mid-sized businesses often benefit the most from managed services, as they may not have the resources for a full internal IT team. MSPs bring enterprise-level support and security at a price point that fits SMB budgets.
For more information about how your business can reap the benefits of managed services, contact us today.
