DNS and hosting question

[Chong Yu Meng]

Hi All,

I was asked about a certain scenario this afternoon that really got me 
thinking. I'm not very familiar with the way web hosting providers work, 
so I'm going to ask my question here. Hopefully someone can help me. 
Here's the scenario I need a little help on :

1. Company XYZ has a website hosted at a 3rd party hosting provider (ABC 
Hosting Company) in a foreign country, under www.xyzdomain.com.
2. Company XYZ has a server it wants to deploy locally, and they want it 
to be somehost.xyzdomain.com

This scenario is quite common in my country, actually, because Singapore 
is an island with a LOT of restrictions, as some of you may know.

My thinking is that, in order for the local server to be accessible as 
somehost.xyzdomain.com, there needs to be a DNS entry for this server at 
the hosting provider, ABC Hosting Company. Am I correct ? If ABC Hosting 
Company requires additional payment and I cannot or do not want to pay 
for an additional DNS entry, how can I get the local server accessible 
by its fully-qualified hostname? How actually do hosting companies 
handle this sort of request?

Thanks in advance,

pascal chong