that CTO's would want to spend more and not LESS on operational costs
The incentives are the same as they always were. A well run IT organization can coast on momentum for a long time - everything is neatly automated. So they sack their good engineers and hire an outsourcing company and save an amazing amount of money just long enough to get that next bonus or promotion, and they're long gone when the momentum runs out and the wheels come off. Repeating the same scam at another company.
The incentives are the same as they always were. A well run IT organization can coast on momentum for a long time - everything is neatly automated. So they sack their good engineers and hire an outsourcing company and save an amazing amount of money just long enough to get that next bonus or promotion, and they're long gone when the momentum runs out and the wheels come off. Repeating the same scam at another company.