Earlier quoted context omitted.
It really is one of the dumbest things in government work. Politicians want to "shrink government" so they don't want many actual employees that would probably be well paid, stable, but someone needs to do the work. Thus, enter the I-too-want-to-shrink-the-government politicians who agree but then farm it out to contractors, some whom they might work for one day (or even come from in some cases in the US!). And so th…
It is also nice to have an entity to throw under the bus if necessary.
It's notoriously hard to fire public servants, or shut down underperforming departments.
It's comparatively easier to shut down an outsourced project, or switch suppliers.
(Alas, not easy enough; and the organizational skills required to win government bids are different from those required to actually deliver quality.)