I would add to this that almost all the companies I have worked for (from local businesses to multi national corps) constantly "save" money by hiding it in labor costs. There is some line item or other thing that is clearly definable on a budget and so they will outsource it in some capacity and then pat themselves on the back for the cost savings. However, what ends up happening is the resulting product that comes in is dog shit and it forces the people on the ground to fix it or otherwise make it work.

Most regular people just want to do their job and not rock the boat, so rather than make this new issue a pain point for management, they just deal with it. Over time those types of things start to add up and burn people out, but the higher ups are never directly effected and so I think they get a weird sense of anything they say ultimately "just working out".