There are many reasons why outsourcing is beneficial to medical device OEMs. A recent article from MPO goes into more detail. There is a huge point made in this article with respect to R&D:
“The most forward-looking companies recognize that the majority of R&D and engineering resources must be focused on developing new products and new revenue streams—but pressing issues associated with current products today consume a disproportionately large amount of limited resources.
Although R&D resources continue to shrink, consumers continue to demand the most innovative products, expecting the latest technology faster and at a lower cost. This creates a void—the need for medical OEMs to focus on new product innovation while sustaining current and new versions of existing products under budget constrictions. As a result, many OEMs try to prioritize their new product development initiatives over sustaining engineering efforts for current products. However, with so much intellectual property and financial resources invested in existing products, companies often fail to achieve the desired focus.”
The article further describes a product stewardship model OEMs should consider with CM partners.