Earlier quoted context omitted.
They both reduce institutional knowlage. This tends to be extremely detrimental in the long term. Outsourcing software is like burning all the design documentation for hardware your having someone else build. Even something as well known as injection molding tends to work vastly better if you have experienced staff as part of the design process. And software is worse than that because the design process is part of de…
I agree with your point. Its just that not all consulting or outsourcing is bad. A decade ago, at least in my experience, Chinese products were synonymous with bad quality and were not considered reliable. Nowadays, while those kinds of products do exist there also exist very good products designed and made in China (eg: DJI, OnePlus, etc.). I reckon its still early days for software and going forward, we will learn…
In the short term it can often work really well. Somewhat more rarely it can also work long term.
The trick IMO is to be hands on. Apple's approach to manufacturing is to be aware of what's going on even if they are not actually doing it.