Outsourcing is defined as taking a process or product, and obtaining it from another source besides your own internal resources.
Automation is defined as taking a process or product, and designing a machine to assist is the making of this product, specifically for the purposes of cutting costs, improving productivity, and improving quality.
In general, to set up an outsourcing company you must train them to be as good or better at producing your product as you are. Care must be taken to prevent them from being your next big competitor.
Outsourcing companies make their living manufacturing a variety of products. More successful partners will have several products besides yours to stabilize their business. This could cause your product to become low priority. Financial or political difficulties at your outsource can arrive with little or no warning, leaving your company with no means of production.
Issues Regarding Manufacturing