[kmeisthax]

So, the problem isn't outsourcing bad or vertical integration bad. Vertical integration has benefits for things that can differentiate you (e.g. Apple's custom silicon and operating system software). If it's not differentiating, then buy instead of build.

The problem is that there's a mismatch between the customers and management as to what the core focus of the business actually is. Every business wants to become a weirdly shaped futures trader that just arbitrages on other people's work - i.e. one that has no core competency whatsoever. Everything gets outsourced so that cost pressure can be used to obfuscate fraud.