the key trick is that once you outsource enough of your key competitive advantage - the question arises - what is the company and who creates value - contractors or company management?
why shouldn't these contractors open their own company, do the same work and capture entire value they produce, instead of working for fixed salary?
what is exactly IP in software world?
Your backend app written in Spring with postgres schema like thousands other CRUD apps?
or cookie cutter front-end in React with Tailwind?
I don't think wide moats in form of IP ever existed in software world
why shouldn't these contractors open their own company, do the same work and capture entire value they produce, instead of working for fixed salary?