I believe outsourcing can be a symptom of not innovating anymore.
Imagine having to contract out every prototype to a metal working shop — it slows down your ability to iterate because you can’t just go downstairs and try it.
But once you have a design set in stone, outsourcing is cheaper than doing it in-house. These companies specialize in producing parts with economies of scale.
But if you do it for too long, you kind of lose the ability to quickly iterate. Striking a balance is hard.
Imagine having to contract out every prototype to a metal working shop — it slows down your ability to iterate because you can’t just go downstairs and try it.
But once you have a design set in stone, outsourcing is cheaper than doing it in-house. These companies specialize in producing parts with economies of scale.
But if you do it for too long, you kind of lose the ability to quickly iterate. Striking a balance is hard.