It is entirely possible the IT was outsourced to the highest bidder, probably with limited liability clauses etc etc. See Post Office for reference, they are still reaping contract money out of the government, years after having been proven as responsible for ruining people's lives for decades, and coverups.
Here in the UK it's not as simple as that. In order for your bid to be accepted there are a lot of hoops you go through to try to prove yourself.
Unfortunately these make it very hard for people to get contracts with the government, so most government contracts get awarded to a small number of contractors who can maintain the expertise needed to comply with the rules. Often they end up charging more than other companies and doing a worse job.
