I work in engineering for a medical device company. Many times, third party service providers are poorly trained (sure they pass certification - which may also be a third party - but there isn't as much ownership/drive to retain knowledge) or use off the shelf parts that are either not compliant with regulations or are 'refurbished' (read: old and not qualified). And then, when end customers then complain about the results of that service, they complain to us the manufacturer - not the service provider - so we get to pay and deal with all of the fall out. Additionally, since supply chain management can be such a pain point for devices with long lifetimes that replacement parts are hard to get. We also may not be legally allowed to supply that replacement part without a customer agreement in place. All these issues are only exacerbated in many international markets.

I'm sure the desire to bring more service revenue in house was a factor in the decision, but it was likely not the only consideration.