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I think a lot of it has to do with poor understanding of tech. People don't understand the complexity and challenge of creating an e-commerce site or iOS app so they think they can get it for cheap when in reality they would likely be better off just burning the money given the headache it will involve.
Where I've found outsourcing works is for small, mundane tasks like front end development. But even then you need a knowledgeable person managing the process who can correct mistakes, provide quality control etc.