If there's something to blame then it's obsolete tender process that make it impossible for quality vendors to compete or for outsourcing firms to make realising proposals.
Overpromising and underdelivering is not fraud. Fraud is what VW, FB and Theranos and the likes have done.
I just think it’s not fair to accuse them of fraud.
It is. That's like saying selling a Merc with a Suzuki Swift engine inside is not fraud.
I think India is a challenging place to make a living and thus many people do whatever they can to make a buck, at least that is how I explain this behavior to myself.
It’s lack of regulation, funds and a lot of other things.
You’re right though, it’s going to affect reputation for sure. Not like it’s going to make the bad actors mindful, because as you suggest, it’s survival that’s on their mind.
Imagine you own a store with broken locks. A thief learns of that, and comes one night, and plunders your store. Yes, you'd be to blame for being irresponsible and stupid. But the thief would still be liable for theft.
Facebook, VW, Theranos and many many more.
Maybe in the your household blaming the victim when they hire a company with such a well known track-record of failing to deliver is acceptable, but many people have different values.
It’s a different matter that I don’t think very highly of them.
I just don’t think it’s fair to accuse them of fraud. W/o considering the fact that they’re from a country with a lot less resources competing for contracts that perfectly competent people reward to them.