I was going to reply in a long winded way about why it's necessary in an outsourced/contractual basis, but i'll just reply 'MONEY'! It's a way to prove the amount of work you are doing for the company so the company gets it's $$$ and if you cant prove you were doing it then your company gets hit with penalties. Simples. (And if you think it's small fry, i worked on a contract where a failure of a 1hr SLA was a $1m service penalty!)
Another very good point

Everything is about the money, it's what drives pretty much everything.
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