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India Reseller Web Hosting Outfits: Outsourced Reselling?

Aug 17, 2007
Outsourcing was a hot issue a while back. As budding web entrepreneurs, we can't stop thinking about it just because the issue has faded, because we all have to stay up to date on issues related to our prospective businesses. If you are looking into putting up a reseller hosting company, for example, you'll know that offshore reseller hosting is increasingly becoming a hot ticket. But if we pay more serious attention to the outsourcing issue, we'll have to ask ourselves: Are India reseller web hosting outfits in fact outsourced service providers?

We're not talking about Indian support agents or customer relations representatives answering queries for a reseller outfit based in North America or in Europe. Chances are that reseller outfit will not advertise that it is outsourcing certain back office services to lower cost locations. No, we're talking about India reseller web hosting companies - individuals or entire business units licensed to operate independently within India, with a mostly-Indian labor pool.

First off, we have to define what "outsourcing" really is. There is a remarkable difference between outsourcing and franchising, two very lucrative business processes that have spelled out success for smart global-minded entrepreneurs over the decades. Outsourcing means recruiting workers in lower-cost locations to address a target market residing in an advanced nation. Franchising means setting up a base in a lower-cost location to address the needs of the residents of that lower-cost location.

A common example of franchising is Yahoo!'s method: there is a Yahoo!Japan, a Yahoo!Singapore, a Yahoo!China, and many other versions, everywhere in the world. Some of these franchises may be in low-cost locations, but the idea is that the market is localized. It is also important to note that any transactions with international clients is done under the global Yahoo! banner.

If a company is based in India, then, and it is addressing a mainly Indian clientele, it is not an outsourcing company. And if it does not tie back to a mother corporation or a global banner, neither is it a franchise. It is, quite simply, an independent all-Indian venture.

However, these independent ventures may address an international audience! This is one of those things you could take advantage of, as a web space reseller. An Indian reseller web hosting outfit would be able to offer you significantly cheaper space, which you could then redistribute at optimum rates. You are able to save not through outsourcing, but through a strategic partnership!
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