There a number of general financial reasons why a company may choose to outsource a portion of a business. Generally, these tend to depend on cash flow and the growth avenues a company chooses to focus on. When facing a cash flow issues, it is generally wiser to outsource a business segment. Despite outsourcing being more expensive, it requires significantly lower upfront investment costs. Even when cash flow is not a significant issue, a company may choose to use its resources to engage in growth in a different segment than the one being outsourced. This can often be a wise decision.

Of course, as Akash mentioned, outsourcing a design, it is essential that communication is very clear, and that costs, transportation, and manufacturing design well communicated and accounted for.