"That design violated basic principles of redundancy for generations of Boeing engineers, and the company apparently never tested to see how the software would respond, Lemme said. “It was a stunning fail,” he said. “A lot of people should have thought of this problem – not one person – and asked about it.”
Seems like the blame has to fall squarely on the shoulders of Boeing. The Indian subcontractors are free to submit poorly engineered software and systems design all day long. It's the REVIEW process that is an essential part of any safety-critical design process. I have not worked in avionics, but I have worked in IEC61508 projects, and it's the same thing there. It's about engineering rigour, and being able to DEMONSTRATE, in a court of law if so required, that appropriate rigour was applied at all stages of the design, from initial requirements gathering to integration testing.
This is a slam-dunk. People should be going to jail. It's an American company though, so nobody will go to jail.