Re: I work in the public sector.. I constantly fight against outsourcing
It's not just IT that suffers from this. During my very brief stay in the public sector the Wise Ones at the Top decided to outsource a large chunk of Facilities Management to a well known provider of Facilities Management services. It rapidly became clear from first hand observation, and from talking to folks in other authorities, that this contracting firm had a very simple business principal: No matter how the contract is written, whatever it includes, anything the client wants is "Extra to Contract" and will be charged for at the penalty rate agreed for messing around with the contract. Everything, always, was Extra to Contract.
That was 20 years or so ago. So it is a bit soon for the public sector to have learned.