​​You mention how there are cost advantages to outsourcing business. I mentioned the same thing in my initial response. However, there are some hidden costs, as well. "Although companies see an immediate benefit to the bottom line when outsourcing, there are often hidden costs that can negate any of those savings. Outsourcing almost always means job eliminations, which can have a negative effect on morale, loyalty and productivity among the employees who remain. A difference in time zones, particularly when outsourcing to offshore companies, can severely affect the productivity of employees who oversee and manage that piece of the business. And travel and related expenses can pile on these employees as they travel back and forth for training and other meetings (Wickford, n.d)."

You also lose some control over your manufacturing if you are not present at all times and you may place yourself in a vulnerable position where the suppliers hike costs up just because they can. For example, when HP decided to outsource with contract manufacturers, they run the risk that component prices will be artificially inflated. "And it has less visibility of supply and demand patterns for strategic components. Other negatives include weaker buying power, reduced enforcement of contractual agreements with suppliers, and a greater chance that lower-level components will not meet strict quality standards (HP, n.d)." Thus, you have to develop a strategy around remaining in control and maintaining cost visibility. ​