You're proving exactly why this is the case. With 2 people, it's easy to coordinate, agree upon a lot of things, accept compromise, meet face to face. Try 20 people. Infinite meetings, pushback from managers, resource allocation clashes, politics top to bottom.

I'm not defending any large company, they could if they wanted to, they just don't care. If this is "cheaper" and they can cut costs, this is what they'll do.