Capacity Constraint—your own facilities are running at full capacity or your current product mix does not allow you to produce a product you need to satisfy current customers / markets / commitments.
Growth—you have potential new products but before you commit capital to the purchase and installation of new equipment you want to introduce the product to the market while limiting your financial commitment.
Alternate products—you have development plans for alternate products in your current facilities but you want to continue to supply and satisfy the customers of your existing products.
Avoid flammable solvent—you have the ability to produce a product but you would prefer not to have to deal with the safety and regulatory complications associated with the solvent required.
Avoid solids handling / combustible dusts and their associated safety and regulatory requirements.
Equipment limitation—your current facilities and equipment are stretched to the limits and beyond of their capabilities.
Cost savings—alignment of production volumes to match market demands results in inefficient use of your current facilities.
Not a core competency—you want to continue as a supplier of a product without making the commitment in time, effort and expense to refine the technology.
Outside the scope of your expertise—you have market opportunities that you are unable to capitalize on without significant investment for the necessary production capability.