There are always pros and cons with outsourcing, however, this is not really dependent on the size of a company, but more so to do with time, cost or if you have the expertize and setup to do the job in-house. Additional when company decides that it’s going to outsource a product in development, a lot of time the manufacturer are involved in the design process from the beginning and helps with prototyping for verification and validation.
In cases where the manufacturers are not involved until after the validation process, this will increase the chance of failure during the design transfer.