Many OEMs want to add a new manufacturing location, but very few actually do it.

The reason is simple:
Changing a contract manufacturer feels risky.

Procurement teams worry about delayed shipments.
Engineering teams worry about quality changes.
Management worries about customer impact.

In reality, most companies are not afraid of India.
They are afraid of production disruption.

A manufacturing transfer can be done safely – but only when it follows a structured, engineering-driven process rather than a commercial handover.

This guide explains how OEMs successfully transfer electronics production to India while maintaining continuity, certification, and product reliability.

Why Companies Decide to Transfer Manufacturing

The trigger is usually not price.

Most transfers start because of operational risk:

Overdependence on a single supplier
Long lead times
Capacity constraints
Communication delays
Geopolitical exposure
Lack of responsiveness for engineering changes

Many European OEMs are not replacing their supplier immediately.
Instead, they want a second qualified manufacturing location – also called dual sourcing.

The objective is stability, not replacement.

The Biggest Myth About Manufacturing Transfer

Companies assume they must “stop production → move factory → restart production.”

This is exactly what should never happen.

A safe transfer is done gradually while the existing supplier continues production.
The new manufacturer is qualified in parallel until both sources produce identical results.

This process is called controlled industrialisation.

Step 1 – Technical Data Collection (The Most Critical Phase)

The first mistake companies make is sending only Gerber files and BOM.

That is not enough to manufacture a product reliably.

A proper transfer requires a complete technical package:

BOM (with manufacturer part numbers)
Gerber & PCB fabrication drawings
Pick & place data
Assembly drawings
Test procedure
Programming files (firmware, calibration data)
Test jig details
Label format
Packaging instructions
Acceptance criteria

Without a test and inspection definition, quality cannot be replicated – even if the assembly is correct.

This stage prevents 70% of future problems.

Step 2 – BOM Review & Component Risk Analysis

Before any production starts, the new manufacturer performs an engineering review.

The purpose is not to change your design.
The purpose is to identify supply risks.

Typical findings:

Obsolete components
Region-specific parts
Single-source ICs
Connector availability issues
Long lead-time semiconductors

At this stage, alternates are proposed only with OEM approval.
Nothing should be substituted without formal acceptance.

This protects product performance and certification.

Step 3 – Process Replication (Not Re-Engineering)

A reliable transfer does not redesign your product.

The goal is to replicate:

Soldering profile
Assembly sequence
Inspection criteria
Test coverage

The new factory builds internal work instructions and control plans before building the first unit.

This ensures production knowledge does not depend on operator experience.

Step 4 – Prototype Build (Engineering Validation)

Now the first buildings start.

This phase is not for volume production.
It is for learning.

Activities include:

First article build
Process adjustments
Fixture validation
Programming verification
Test debugging

The OEM engineering team usually reviews the first assembled units and confirms build conformity.

No shipment to customers should happen yet.

Step 5 – Pilot Production (Process Validation)

After prototype approval, the manufacturer performs a pilot batch.

This is the most important stage of the transfer.

Here, the objective changes from “Can we build it?” to “Can we build it consistently?”

During pilot:

Yield is measured
Repeatability is verified
Inspection records are created
Traceability is confirmed

The results from this phase prove that the manufacturing process is not just the product.

Step 6 – Parallel Production (Zero-Risk Transition)

This is the step that eliminates risk.

The existing supplier continues supplying customers.
The new manufacturer builds and stocks units in parallel.

Only after consistent performance is demonstrated does shipment begin.

This avoids:

Delivery interruption
Line stoppage at the customer
Field reliability concerns

In other words, the transfer becomes invisible to your end customers.

Step 7 – Documentation & Traceability

Professional transfers include documentation alignment:

Serial number tracking
Batch traceability
Test records
Inspection reports
Material lot tracking

This is especially critical for:

Medical electronics
Industrial equipment
Safety products

Traceability ensures audits, certification, and warranty support remain valid after the transfer.

Common Mistakes That Create Transfer Failures

Most unsuccessful transfers fail not because of manufacturing but because of process gaps.

Typical issues include:

Commercial handover instead of engineering handover
Sales teams exchange files without technical review.

No defined acceptance criteria
Suppliers and OEMs measure quality differently.

Immediate volume orders
Skipping the prototype and pilot phase.

Uncontrolled component substitutions
Different components affecting performance.

No test replication
The assembly is correct, but the product function is not verified.

Avoiding these mistakes dramatically improves the success rate.

How Long Does a Safe Transfer Take?

For most electronics products:

Product Type	Typical Timeline
Simple PCBA	6–8 weeks
Mixed technology assembly	8–12 weeks
Box build system	10–16 weeks
Medical/regulated product	3–6 months

A fast transfer is rarely a safe transfer.
A structured transfer is a stable one.

The Real Objective of Manufacturing Transfer

The purpose is not to abandon your current supplier.

The real objective is:
supply security.

After qualification, companies gain:

Backup production capability
Reduced dependency
Better lead time flexibility
Negotiation stability
Risk diversification

Many OEMs continue working with both suppliers long-term.

Conclusion

Transferring electronics manufacturing to India does not have to involve operational risk.
When approached as an engineering qualification project rather than a purchasing activity, the process becomes predictable and controlled.

A phased transfer – technical review, prototype, pilot, and parallel production – ensures continuity while establishing a reliable second manufacturing source.

With proper planning and documentation, companies can expand their supply chain footprint while maintaining quality, certification, and customer confidence.