- A US intermediator can know the climate in India and navigate the cultural differences because they do this day in day out.
- A US tech company can properly vet whom they're subcontracting to because they have engineers in-house
- A US tech company will have a contract in US jurisdiction. If there is e.g. a data leak, there is liability through US courts. A step down from that, a US company can have US-based oversight and escalation mechanisms
- Social networks and relationships matter too. If you're working with Bob from the golf course, and his company messes up, you'll see Bob again next month at the golf course and chew him out.
... and so on.
I'm not suggesting you or I (personally) should subcontract through IBM, but for a US-based non-tech firm, it can make a lot of sense.
To flip this around, whom would you rather hire to do your accounting (presuming you're not an accountant and know nothing about accounting):
- A US company which outsources to India
- A random company in India
I would go for the former, since I know there would be liability if they messed up, and they'd make sure the US tax code was properly complied with. There's nothing wrong with the latter, but I'd have no way to vet them, and if they messed up, no recourse.