They say they need it. They often do need it to achieve their goals. Then they block everyone that can do it unless they'll do it for a ridiculously low amount. One so low that it seems to result in half-assed results in most IT work that cause them trouble down the line. They just can't afford that $10-20k for real production work.

That said, they can pay someone $1+ mil a year to let the people under him do all the work. Give executives raises. Pay for meetings in expensive hotels that could happen over the phone. Buy lavish furnishings for their buildings. So on and so forth. Don't buy into the idea that most of these companies are ultra-rational actors investing only what they need for the benefit of the company. Lots of politics, gaming the numbers, and people on top trying to move more money their way in most of them.