Outsourcing

In-house vs. outsourced production: what’s right for OEMs in renewables?

​​Market insights​

May 30, 2025

5 min read

Balancing control, cost, and scalability is critical, especially in a fast-moving, high-stakes industry like renewable energy. 

As the global push for clean energy accelerates, original equipment manufacturers (OEMs) in the renewables sector are facing increasing pressure to deliver reliable, high-quality solutions at scale. One strategic decision stands out as particularly complex and consequential: whether to keep production in-house or outsource it. 

There is no one-size-fits-all answer, but understanding the trade-offs is essential. In this blog post, we break down the key differences between in-house production and outsourcing, and explore how to approach this strategic decision in a way that best supports your growth. 

In-house production ensures control and clarity

For many OEMs, in-house production offers a sense of control that is hard to replicate through third parties. You set the standards, monitor the process, and respond to design changes or technical challenges. This can be especially valuable for: 

  • Maintaining product quality and consistency 
  • Protecting proprietary technology and IP 
  • Iterating in R&D-heavy environments 
  • Building internal expertise 

The downside of in-house teams

However, the trade-off comes in the form of high upfront capital investment, longer lead times to scale, and greater operational complexity, especially in global supply chains. 

Outsourcing production gives flexibility, speed, and cost efficiency

Outsourcing production to specialized manufacturers can unlock agility. It allows OEMs to scale more quickly and focus on innovation, sales, and service – their core business, which adds most value. 

For renewables, where market demand can surge based on policy shifts or regulatory incentives, outsourcing enables faster time to market. It also provides access to: 

  • Advanced manufacturing capabilities without the capital cost 
  • Global networks and logistics support 
  • Labor and operational cost efficiencies 
  • A responsive partner that can quickly adapt to changing needs  
  • Simplified stakeholder management  
  • Flexibility to meet customer-specific requirements through agile partners 

The downside of outsourcing production

Handover of control, supply chain visibility, and data security can become pain points. Long-term dependence on third parties may also limit responsiveness in volatile markets. 

Striking the balance with the right outsourcing partner

The decision is often not binary. Many leading OEMs adopt a hybrid approach – maintaining core or strategic production in-house while outsourcing components or non-differentiating processes. This allows them to:
 
  • Stay close to critical technology 
  • Keep operational flexibility 
  • Optimize cost and performance 
 

The key is to align your production strategy with your long-term goals – and to choose an outsourcing partner who can bring that vision to life.  

The right partner helps you design a production setup that works for your business, enabling you to deliver on time, meet customer-specific needs, and navigate challenges with confidence. It is not just about capacity – it is about having a partner you can count on. 

Outsourcing production doesn’t mean giving up control

As OEMs in the renewable energy sector navigate rising demand and tighter timelines, the choice between in-house and outsourced production becomes critical. 

In-house offers control and customization, while outsourcing provides speed, flexibility, and cost efficiency. Many successful companies find the right balance through a hybrid approach, keeping strategic capabilities internal while leveraging trusted partners for scale. 

At Opoura, we help OEMs scale smarter by offering reliable, high-quality outsourcing solutions tailored to the renewables industry. Our expertise, global reach, and commitment to sustainability make us the right partner for growth. Ready to scale with confidence? 
 

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