It is good that you are being honest. A lot of smaller hosting providers claim to offer 24/7 support but in reality it is just a one man show - clients have to basically wait for the owner to wake up and finish his breakfast before they can get a response.
Outsourcing support is expensive especially if you are a smaller business and the outsourced support will definitely lack in quality compared to if you were handling it yourself.
I believe as a smaller setup, it will be much better to compete based on your dedication to client support. Even if you responded a few hours slower, as long as the client can tell you are concerned about their query, they would still remain happy.
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