Outsourcing items not directly in your line of specialty can help ensure overall quality and reduce costs. But outsourcing is also the biggest possible vulnerability of an original equipment manufacturer (OEM). A single little item can hold up the whole large project if the outsourcing contractor defaults in timely delivery. And a single small outsourced item can ruin the project if it does not have the requisite quality. The smallest glitch in timing, or quality can irreparably damage the reputation of the most established OEM.
So, should we stop outsourcing? No; sometimes it is the wisest course. Outsourcing is necessary, but with due caution. The following are some important questions you must answer about your prospective outsourcing contractor.