That's exactly it.
Another trend I've noticed recently is that a lot of the technical staff in large companies are moving into more Project Management / Architecture roles and the technical roles are outsourced. It probably makes sense as it would be slow and expensive to keep staff up-to on IT advances and staff would be the subject matter experts anyway so it's a better use of their skill. Good times for contractors though!
I know of contractors who seem to have any number of 'layers' above them, all taking a cut but who seem to be adding little or no value. One contractor, working ultimately for IBM, told me of two other layers of contracting companies (not including his own independent company), all taking a cut of the day rate.
Why?