The risk of non-delivery exists for these large firms too - see Hertz vs Accenture, for example. Or Indiana vs IBM. In my company, to hire a company like IBM o

The risk of non-delivery exists for these large firms too - see Hertz vs Accenture, for example. Or Indiana vs IBM. In my company, to hire a company like IBM or Accenture we have to propose a plan, which has to be approved by many layers of bureaucracy. This plan includes a budget. A real risk is that the consultant underdelivers, or we need more budget. Then we have the sunk cost problem, and we have a bureaucratic one as well to increase the budget. And the consultant already costs more than hiring on our own and doing it in house.