The practice involves a company creating a software solution that another company can then rebrand and sell under its own name. This allows the reseller to offer a technology product without the significant investment and time required for independent development. A common example is a customer relationship management (CRM) system built by one firm but marketed by several others, each with their branding and pricing strategies.
This approach presents several advantages. It reduces time-to-market for businesses seeking to expand their product offerings or enter new markets. Resources can be focused on sales, marketing, and customer support rather than on complex coding and testing. Historically, this model has been successful in various industries, enabling rapid innovation and wider accessibility to specialized technology solutions.