If you consider overcharging (perceivably) to be akin to defrauding, then a lot more doctors, pharmacy cos. and lawyers are defrauding clients than outsourcing cos. Even though the repercussions of them defrauding their clients is a lot higher. Also it's a fraud because of the oaths they take, of which outsourcing cos. are obliged to take none.
Given how it's such a common thing that it doesn't surprise anyone on the engineering side of things, I'd expect that the corporate management would've wised up to this already. This makes me wonder if both sides of the deal are in on it, and are together extracting money from the larger corporate entity.
