Hello Forrest,
I am assuming when you mean "outsource" you are talking overseas and importing the product. I have found that working through an agent that is "in-country" benefits the importer (you) immensely. It solves the language barrier and their is a little more accountability and less money skimming. Typically agents charge 5-8% for this service which does increase then landed cost which you ultimately pay duty on. However in my experience the factories know if you're sourcing direct vs. working through an agent and they will charge you more because they know you're making more on the item because you don't have to pay the agent fee. However, the biggest benefit is in the quality control. You create the product specification including the packaging and shipping requirements and give that to your agent and the agent must inspect the goods before shipment and if there is a problem you have recourse with the agent. You get caught in a black hole when you have to argue about quality specs directly with the factory.
This is all great but how do you find a good agent? You can:
1/. Ask the factories for agents that they work with.
2/. Call non-competing businesses that import and see who they use as an agent - most agents diversify the products they represent in order to insulate themselves from market flucuations. If the agent can't help you they will know someone else in country
3/. Network with colleagues and find out what agents competing companies use and contact them directly.
Good luck
John Bateson