Part of the problem is a lot of IT talent is more interested in building the latest social networking gizmo than solving Detroit IT problems.
I seem to recall we had a similar discussion in the wake of the disastrous healthcare.gov rollout. For example, https://news.ycombinator.com/item?id=7855295
Also I try to only take smaller projects (up to $100000 or so) since they tend to be handled by much more sane people all around.
There may be some pointers here applicable to the US scene. Nevertheless, it's good to see management finally realizing the cost benefits of smaller-scale operators.
You're in a bubble if you think that.