When would firms want to vertically integrate rather than outsource? In the development of new products and services, coordination requirements play a major role in determining whether a vertical integration or outsourcing decision should be made. The company/firm may choose to vertically integrate to be able to control the quality of the materials used, the manufacturing process, and the supply chain. By doing this, a more efficient process can be created, cost savings can be realized, and the final product can be improved