b0rg:
Lower cost means a reduction in quality of work done, and/or a reduction in the skill level of those doing te work, as people leave for better paid roles overseas or in other industries.
Not only is this whole fiasco bad for the contractors, it is also bad for the industry, and bad for the end users who will have to use the reduced quality products and services from less skilled staff.
This is completely unrelated - however it is a common theme here, in that case why do people keep demanding cheaper services?