A few years ago, I worked with a nice couple who had purchased a failing sign franchise. These people were new immigrants who spoke English tentatively, and had no sign industry experience whatsoever. Their work backgrounds were in retail sales and merchandising. Within two years (this is before involving me in their business) they had grown sales from roughly $50K per year to $480K per year...with just two employees (just them).
Do you want to know their secret?
They focused on sales and marketing, and outsourced production for 80% of what they sold to other (distant, non-competing) stores in their franchise network.
It was a real eye-opener to me.
So, Pat is right. While it might be hard to imagine anyone outsourcing more than 40%, it is done...and done very successfully.