I disagree. For a smaller company, it is usually more cost effective to outsource manufacturing because they rarely have the infrastructure required for production. It is usually larger companies that are producing many products that can justify and afford the facilities, equipment, personnel, expertise, etc. for in-house manufacturing.

However, because of that, smaller companies must have adept technical or design transfer professionals that not only manage the CMOs well, but also have the insight to know what can go wrong so as to prevent it. This can be a major con for outsourcing, especially since not all CMOs are of top quality.