Definition & Scope
Manufacturing outsourcing is the practice of contracting external companies to produce goods or components on behalf of a business. This includes contract manufacturing, original equipment manufacturing (OEM), and assembly outsourcing.
Why Companies Outsource
Companies outsource manufacturing to reduce production costs, access specialized facilities, increase production flexibility, and focus internal resources on design, marketing, and sales. Vietnam, China, and Mexico are among the most common manufacturing outsourcing destinations.