The best way to outsource your manufacturing service is to find a manufacturer that can produce your product at a cmpetitive price and one that you can legally go after if they don't live up to their obligations.   A manufacturer in the US that can offer a competitive price will be an advantage over an overseas manufacturer that can't be held accountable in a US court of law.  However, many overseas manufacturers can offer more competitive prices over US manufacturers.  Something to think about!

Most companies that perform prototyping services also performs manufacturing and may be a good source to get your product manufactured.  To find manufacturers visit the sbz suppliers/manufacturers web page.

Advantages:

It can be lest costly than establishing a manufacturing process from scratch.

You don’t have to worry about environmental factors.  Your manufacturer will have to worry about that.

The manufacturer will have to deal with personnel issues (pay, benefits, discipline).  This saves you the headache.

Disadvantages:

Manufacturers often require that you purchase your product in bulk quantities in order to make it economical for them to produce it.  This will require that you pay large sums of money up-front to get the items before you can turn around and sell them.

Manufacturers may also charge you for storage of large quantities of your product or you will have to rent a facility large enough to store them on your own.  Either way there will likely be a large storage cost. 

Your manufacturer may not be able to produce on the cycle and quantities you require if you product is in high demand.

Quality control may slip.  It could be too late by the time you find out.