I always wondered why, and I came to following conclusion: 1. Orgs outsourcing projects are optimising on costs. 2. Outsourcing IT companies are optimising on margins(nearly the same thing).

If orgs outsourcing projects start optimising on quality of deliverables or security, or speed of delivery, we will see drastic change in behaviour of these IT companies.

IT companies will be better incentivised to hire smart graduates, invest in trainings etc.