Great post - I think you are right on. The dinosaurs can’t compete using their existing business models. Any group of experienced local consultants should be able to run rings around them.
There is this large FMCG company that nearly 15 years ago sold off its technology dev + support to a large American outsourcer
Thigns soon broke down as people didn't want to treat their former colleagues as customers
nimbler companies (including one I worked for) tore off pieces of business
Then cloud computing came in and a massive chunk of support died. Then the fad for devops and more of the outsourcers work died
Then the outsourcer split into three companies and the services dinosaur merged with another services dinosaur - to the detriment of the customer
Now the merged dinosaur doesn't do anything but cut headcount and show "great numbers" to the financial analysts. Meanwhile the CEO sells off chunks of his stocks to make million$$