That's the kind of work that was supposed to be brought in-house with contingent labour to supplement the new digitally-capable civil servants, so whole government services didn't completely lose accountability when they were outsourced
The trouble is (as I once pointed out in a leaving interview,) for most IT stuff, they are directly competing with the private sector. I'm a Unix sys admin, and I've done the same job for a government agency as for an investment bank, an international telecoms country and a start-up fibre company. What I do is pretty much the same, I mean, it's changed over the years because tech has changed, but the applications and services on top are where the real differences are. Servers and storage and networks underneath it all tend to be similar. But the government role paid far less than the others. This means they're unlikely to get the best staff, because they can get a lot more money elsewhere - quite possibly doing literally the same thing but for an external company on a contract.