For most companies, hiring good quality FTEs is complicated, and very expensive. It makes sense, in many cases, to delegate some things to external vendors ( SaaS companies). There is a line to be drawn somewhere, and it will vary between companies and industries - e.g. a tech company could probably easily handle auth in-house, while i wouldn't expect a law firm or whatever to handle that ( and i wouldn't want them to).
> For most companies, hiring good quality FTEs is complicated, and very expensive.
This is cope - managers repeat this narrative so they can blame some other factor rather than having to put in the work to fix the problem of hiring good FTEs. Unfortunately, this narrative has been repeated so often that it is perceived to be axiomatic, which is why it is repeated without any criticism.
No, its not that hard to find good FTEs, you just haven't tried hard enough, or you're not paying enough, or your glassdoor reviews are bad.
this is not a negligible barrier. Sure you could argue that a business that isnt successful enough to hire for that expensive FTE maybe shouldnt exist at all, but a lot more is possible by being able to outsource it. And there really isnt a good reason why it cannot be outsourced from an operations standpoint - it is entirely a security problem. It's not like auth is hard to do for a third party.