Software is not the end-goal itself. The point is not to make (or use) amazingly elegant software. The point is to make money.
If a supplier says "I will provide the same service as you are currently getting and cost you $X less" then that's a no-brainer regardless of what service they're providing. It's got nothing to do with technology, and technology doesn't change the nature of that decision.
"Having a throat to choke" is also a matter of insurance. You can't insure against your own incompetence, but you can sue a supplier for not fulfilling the terms of their contract. Executives would much rather negotiate what they think is a tough contract with a supplier than manage a complex project themselves. To that mindset, the removal of risk (because if anything goes wrong they can sue the supplier) is a huge bonus.
It's a totally different mindset from those of us who actually make things.