What was the initial bid of the Indian company that ended up costing $6 million dollars?
Stories like these make my blood boil. And to be fair it's not just Indian companies. There are plenty of EU/US based dev teams that consistently fail to deliver and the company still keeps paying them.
I wonder if management just can't deal with sunken costs or if someone is trying to steal money from their own company by making under-the-table deals with the development team.
I've had a couple of clients that dealt with "cheap" teams and wasted years of their life trying to get a product up and running. Taking them on felt like rescuing abused puppies from a shelter. Their eyes would light up every time they witnessed a working feature, no matter how simple it was.