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Outsourcing is a part of the solution - not all of it. I agree with you completely, properly specced contracts are crucial and they are often lacking in specificity - which is a fault of both sides really.Not sure outsourcing will solve the problem by itself.
The Victorian Myki was outsourced and what happened?
"OOOh! We've run out of money. Can we please have another couple of hundred million$$"
What's needed is properly specced contracts with less wriggle room and milestones with real funding implications.
No delivery = no money, or a significant penalty.
And no bonuses for dragging a project full of shortcuts and compromises over the line on time.
Outsourcing simply allows for tangible penalty. Internally run govt projects can fail spectacularly and all it does is allow political parties to sledge one another about it, whereas a commercial entity can lose millions if it fails to deliver.