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I'm skipping all that above but I use an Indian outsource company for level 1 and 2 and server management. When I first went looking for help, I tried using an American company. I gave up on them after three weeks of complaints from my clients because they flat out sucked. And actually wound up being more trouble and work for me than if they weren't helping.
We use a private Indian company and wind up paying a fair amount more than what's generally acceptable in the field. While we do have the occasional language problem, it's not at the level that those stories online make it.
In fact it's kind of fun. Their equivalent of the Girl Scouts has sister troops with some of our clients in the US and the UK. Trade pictures, video chats and the like.
We also use some interns and a couple of part time folks around the globe.
I have LEB's with quite a few providers here. You're right that some of them don't staff their support well. But those are quick one and done providers or the "you get what you pay for" kind.
But on the other end of the spectrum, there are several LEB providers I use that answer tickets and do things very quickly. In addition, oftentimes, with LEB providers I receive much more personal support rather than just being another number at the big name providers.
There are good and bad budget providers, just like there are good and bad "big-name" providers.
miTgiB & Aldryic yes of course, I can fully accept points from your personal perspective and there will be always bright exceptions however sadly this don't apply to whole budget hosting industry. Many, many individuals in this low margin business simply get fed up with all this through time which long term often lead into service degradation. LEB site offer us plenty examples of this.
Who cares about the quality as long as it's cheap
People that actually want to use it? O_o
You forgot your <sarcasm/> tag. If people don't care about quality, we won't even have the discussions here, nor hundreds of comments on LowEndBox each day -- people will simply accept the fact that quality does not matter as long as it's cheap. But no, people complain whenever they feel the quality has degraded.
I'm being sarcastic >_>
The fact is, people will buy anything if it's cheap. That's why we have so many "companies" and that's why the deadpool is growing every month.