It's probably more like deciding that your organization is simply incapable of writing software (which I've seen before). The typical next step is to outsource

It's probably more like deciding that your organization is simply incapable of writing software (which I've seen before). The typical next step is to outsource it to an outside organization that will cost 3x as much and produce software of far lower quality. It's a win, though, because the exec's can point their fingers at them, perhaps even sue them, and in any case proclaim loudly that nothing could have been done. (And also, that they should get their bonuses anyway.) We'll see.