The Public Sector does a lot of things well, but it is not great at many others and thus private/public partnerships are an absolute requirement for government to run effectively. If the Public Sector were really out to avoid all outsourcing, it would be detrimental to the core competencies of its staff.
So, if we're to take a step back and say that a lot of government's utilize SIRE or GovDelivery to host, manage, and deliver their documents to the public, are you instead suggesting that the Public Sector bring these functions in-house and build infrastructure and management solutions to do this themselves?
You believe that web/email hosting solutions should not go to IaaS organizations and instead should be handled by high-cost internal IT groups which may not be as inexpensive or effective as those in the Private Sector?
I think your view is incredibly short-sighted for many of the functions of the Public Sector. While the Public Sector *must* do a better job managing the Private, that is besides the point; they simply cannot do what you claim they should, especially while being mindful and reacting quickly to their citizens.