Yes -- among other reasons, none of them related to quality. WITCH companies are notorious for this. Accenture, for example, boasted similarly ginormous numbers for a contract with the NHS (11 bn GBP), which never produced any working software before being scrapped after several years.
Absolutely. Do you think any manager at Daimler wants to say/justify “I went with this noname 10 person company in the midwestern US” over “I went with Infosys because everyone in the G500 does, and have you seen those prices? I have 100 people working on this project where otherwise I’d have only 10.”
And what’s more, if one of them realizes their mistake, do you think any of them want to admit that to themselves, much less their boss, after sinking billions into it?