Privatization: in much of the (neo)liberal West, it is seen as better to use commercial providers. They're supposed to be cheaper and better, because they're not using (union) civil service staff.
Yes, this results in enshittification.
The thing that results in enshittification is market consolidation. Notice that Comcast sucks whereas there aren't a lot of complaints about Big Shampoo because that's a fairly competitive market.
If the government needs trucks then they should just buy trucks, not build a factory to make trucks and then another factory to make lead acid batteries for the trucks and then start mining lead to make the batteries etc.
At some point they have to interface with the market and you still have to solve the problem of keeping the market competitive and keeping the bidding process from being captured. If you're not doing those things then you're screwed either way; if you are doing them then it's better to just buy finished goods than to have civil servants manufacturing doorknobs and operating rubber tree plantations to make weather stripping.
Ah yes, the art of making things shitty.
I'd understand contracting a commercial provider to run the government infra, with extensive contractual obligations surrounding exactly how data is to be handled. What's wild to me is turning government bureaucrats loose to send and receive likely very sensitive information using the third party provider of their choice.