Is this actually sustainable?

Hey everyone,

I was catching up with a buddy of mine who’s been grinding in the dev space for a few years. He was always stressed, constantly hiring and firing, and basically just breaking even. He told me he recently made a huge pivot in how he handles his workflow. Apparently, he went down a rabbit hole after reading a blog post on white-label strategy from a website named CSSChopper (they do a lot of that stuff), and it clicked for him that he was doing it all wrong.

Instead of trying to manage a massive in-house team for every single project, he started outsourcing the heavy lifting to a white-label partner. He basically rebranded the whole operation. Now he’s focusing 100% on sales and client relations while the partner handles the execution. It seems to be working for him, his margins are up, and he’s way less frantic, but it got me thinking about the long-term viability.

Just wanted to see if anyone else has gone this route and what the "ugly" side of it is that people don't usually mention.