There's entire segments of code that are usually obsolete or do nothing... worse yet, silently fail; users just get tired of reporting bugs and find their own workarounds,
This. I've had to completely rewrite code like this that performed dismally, and was shocked when I saw how deep the crap was. It was obviously just a shit-throwing exercise, and when the wall was full, they shipped it. I've also had the joy of managing offshore groups, only to learn that the team had no experience with the product they were hired to code/test. Where I come from, that's called criminal fraud. Yet the shit keeps flowing...
One particularly memorable episode was an offshore team hired to write some integration code. After 4 months of silence (except for billing, of course), we finally dragged them into a demo session...which lasted about 5 minutes, ending with their team arguing heatedly with each other in Hindi, because they obviously hadn't done more than hacked a "hello world" app during their 4 billed months. Suffice to say lawsuits soon followed.
But that also raises a question I've pondered for awhile: why isn't there more news about the lawsuits against these "firms" ? I've personally witnessed several, yet I don't recall hearing anything similar in the news (tech or otherwise). Do these outfits just suck it up and settle silently, with the plaintiffs keeping silent as well, to cover their arses ?