Product Development Outsourcing

Outsourcing product development services can be very beneficial for companies whose strategic focus is centered on distribution, sales, and customer support. Most mid-sized businesses know their customers extremely well and can manufacture—or manage manufacturing of—their products effectively. However, transforming those products or creating new ones can dilute their core resources. 

The best time to outsource innovation services is in the very first stage—starting from the initial solution concept. Most companies launch innovation initiatives internally and, once they realize the pace of investment is becoming hard to control and there are no tangible milestones, they rush to hire an external engineering partner. That is the worst-case scenario. 

The outcome of the innovation process—design files, code, and any other developments required to make the product work—is always delivered to the company, which typically goes on to patent it. 

There are industrial design agencies, engineering firms specialized in electronics, and others focused on sourcing and small modifications in China. If you need a custom design or want to modify aspects of a product or its packaging, an agency can be ideal. When it comes to outsourcing product modifications or new developments with a certain level of uncertainty, a product development company is the better fit. 

The main frustration with outsourced innovation services is often tied to a lack of control over the process—projects that seem to never end. This risk can be mitigated by strengthening leadership and project management within the company. At Let´s Prototype, we continuously work within collaboration frameworks where the involvement of the company’s Product Manager—or the CEO themselves—is key.

Cost control throughout the entire process is critical for successful innovation. In addition, the link between the creative process and mass production can become dangerously blurred, putting a company’s financial health at risk. 

There are industrial design agencies, engineering firms specialized in electronics, and others focused on sourcing and small modifications in China. If you need a custom design or want to modify aspects of a product or its packaging, an agency can be ideal. When it comes to outsourcing product modifications or new developments with a certain level of uncertainty, a product development company is the better fit.