Government Development jobs just don't pay enough to be competitive for talent. So instead talent goes to outsourcers. Here in the Netherlands that has meant most big government development projects are done by outsourcers. Which leads to bad incentive alignment. Yielding cost overruns, projects that are DOA, and projects with way to large scope. And at the bottom line, the consultancies are better of keeping it this way than to improve things.
But government is not agile enough to pay fair wage for development work. Besides, it would be unfair to all other government employees if these developers made so much more money with less time on the job and the same level of education. (sarcasm)