I work for an outsourcer (but for how much longer I don't know) and like any organisation they have a mix of people of varying abilities. I see some pretty stupid things at times and wonder why I am cleaning up messes that could (and should) have been avoided both on a customer side and as the outsourcer.
We had 2 contractors recently let go simply because their contracts were up for renewal and some beancounter said we had to get rid of bodies. These guys were experienced and knew the customer's environment inside and out - in the mean time, we've got another 160 systems coming online that will need additional resources to provide support - the organisation is now attempting to hire replacements - based overseas.
Another thing that is happening is a global contracting company who supplies labour to my organisation is bringing in foreign workers by sponsoring them, housing them etc and paying them 40% of what the local contractors get paid - this is now putting pressure on the contractors when they try to renew their contracts.