In that case any IT consultancy could fool those people. If a US consulting firm is chosen, how could anyone make the claim that they were chosen on merit?
I know quite a few "business-focused" people. It is not so easy to fool them even if IT is not their core competency. Businesses typically will include several protection clauses in the contract and set the legal jurisdiction to their own country. I don't believe it is easy to fool businesses for years on end. They would go out of business pretty quickly.
>They'll promise them the world at a fraction of the cost of competitors, and the business guys will present a healthy set of cost savings to their board. Once the customer is fully locked in, they will fail to deliver on a few of those promises. Then the excuses start. Then the timelines slip. Then, after many months of this charade, they might get fired. Then the customer might try another company. Then they go back to on-shoring their dev team.
Then data would show that those firms have no long term contracts or repeat business from previous clients. Does it?
If it's a US firm, then there can be financial and legal repercussions. Good luck going after a firm in India.
This isn't just an India thing. This is how government contracts work in the US too. The government contracts out to Lockheed Martin for a big IT project (used to anyway, LM got out of the business on the civilian side at least), LM hires the cheapest 'talent' they can find, loading projects 80/20 management/engineering, drag their feet for a few years, and eventually someone on the government side decides they're going to make their career by being the person who brings this project across the finish line. So they ignore or lie about the requirements being fulfilled and drag the steaming mess in-house, while LM hosts a champagne-drenched celebration. Contracting has fundamentally perverse incentives.
>Except the person on the US side who fought for and won the ability to outsource the project to save money is personally invested in success. He has decided this will make his career. So when it comes to fulfilling those contractual obligations, he will sign off on it, then bring it in house and try to quietly put together a team to fix the system to make it actually function.
Its hard to imagine the owner(s) of the company not being good with numbers here. Surely, such frauds will be found out eventually? In any case if a company has indeed hired such a dishonest person, I would hope they improve their hiring process and do some due diligence on their previous record to weed out such people in the future.
It's a systemic problem, a problem of corporate structure and incentives, and exactly the ecosystem where these kinds of contractors thrive.
If most of the firms that have outsourced have got really bad work from these big firms then why are they not suing for bad quality work? Why do they give bigger and bigger contracts? That shows the type of people in your management which you should take a hard look at before complaining about the quality of work of these big service companies.
Source: I have been on both sides. I have seen the internals of them doing business and it is a freaking mess.
Basically, it's not (1) or (2), but instead (3): that these guys are master scammers, liars and confidence tricksters. They exaggerate without committing to anything and lull their customers into a false sense of security. They are THE slipperiest eels in the industry.
If you don't believe me, I encourage you to give them a try just once - it will probably convince you.