Yep, I have to say I agree.
I was with EDS prior to, and then through the HP takeover. I lasted a couple of years once HP had the wheel, and my experience was pretty much the same as yours. Lots of inefficiency, layer upon layer upon layer of "management" and "leaders", none of whom knew anything about the others. It was a poorly run, rudderless organization and at first, I was amazed that it was even functioning.
But, as you astutely point out, so much of the enterprise business simply can't be moved for legal reasons, or the cost to move the stuff is so immense, it would take many years of active, focused effort (and billions and billions of dollars) to move it. In my Data Center, we had a lot of the major airlines as clients as well as some of the financial and regulatory clients, so I know exactly what you mean.
By the way, for what it's worth, when I left HP, I went to work for another ITO provider. Another major, Fortune 100 corporation that you would definitely know (I just would prefer not to name them here). I can tell you that it's actually the same here, if not worse. No one knows which way is up, I can't believe the ship hasn't sunk, but there is so much money on the line and so many clients hanging on for dear life that we're golden. I do hope that companies like mine and like the HP's and IBM's of the world figure out that the current course of action isn't maintainable. You can't keep running your ITO organizations so poorly and expect to be able to stay competitive. True, today there are only a handful of enterprise grade ITO companies that can truly provide the service for gigantic corporations, and it does take a surprising amount of money to operate a company like this. But, it's only a matter or time before someone with some money decides to put together a REAL ITO company that is actually run well, and when that happens, goodnight HP, IBM, and others. I don't think it'll happen soon, because the market is still so dependent on legacy providers, but it's inevitable, I believe.