Outsourcing is definitely not dead. Most non-tech F500 companies outsource their software to vendors. Most gov agencies outsource their software to vendors. Heck, most GovTech staff are vendor managers (those attached to agencies, in particular). The shiny in-house engineering stuff that GovTech likes to publicize represents a only small portion of GovTech, which only represents a small portion of the public service. So no, outsourcing is definitely not dead. Just need to look beyond the shiny advertising.

Source: Work in Govtech (not hive)