This discussion is mainly focused on product design and development issues and not production, marketing, distribution and service issues; although design and development concerns pertinent to these following stages are noted.

There are many references and discussions about the various contract design and manufacturing businesses which provide 'outsourcing' services of all kinds.  The most common are termed PDC, ODM, OEM, EMS, CMS, DMS and 'Turnkey'.  The exact services of these businesses change over time and even overlap within industries. Because of this, the definitions sometimes conflict as any one of the businesses may claim to provide design and development outsourcing, as well as many of the follow-on production and support services.  So, for this discussion we'll use the following definition.  BTW - it's the service described, not the name, that is important. 

Outsourcing does not necessarily mean 'off-shoring', but it can also cover 'Co-sourcing', 'near-sourcing' and 'far-sourcing' concepts.

1. Product Development Company (PDC) is an independent business with which your company can contract to design only or to design and develop a product to prepare it for production elsewhere.  Your company would then brand the product for retail.


2. Original Design Manufacturer (ODM) is an independent business with which your company can contract to design, develop and manufacture a product that is specified by your company and that your company will then brand for retail.


3. Original Equipment Manufacturer (OEM) is an independent business with which your company can contract to manufacture one of the OEM's existing products for your rebranding, bundling with one of your other products or repackaging by your company for retail.


4. Electronic Manufacturing Service (EMS) is an independent business with which your company can contract to develop, test, manufacture, distribute, manage fulfillment and logistics, manage customers, and provide post sales product support (e.g., return and repair, warranty, licensing) services for your product. Basically, an EMS provides services to companies that have their own product brands and no other basic product support capabilities.  (Note that some ODMs and OEMs claim to provide these services too.)

Contract Manufacturing Service (CMS), Design Manufacturing Service (DMS) and other variations of the above outsourcing businesses descriptions and won't be further referenced in the following.