Yeah, this isnt cost effective or efficient. Instead what it does is moves tax money from the people, to oligarchs/rich. This was the argument back in 1980s as they were migrating public works to private company bidding.
Which, as we see today, isnt a smart move by the people, but it is for those with those businesses, they get rich off of this, where as public works, no one gets rich, they just get paid and then pay taxes on that, literally a circular monetary system vs the Oligarch hording one.