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They started doing that 30-some years ago. The only "onsite" IT staff are usually those who do local computer setups/trouble-shooting/distribution or who act as COTRs (Contracting Officer Technical Reps) managing certain IT contractors, helping with needs assessments, and evaluating the contractor work.
ETA - adding this to show civil servants vs contractors -
(from here - https://www.brookings.edu/articles/is-government-too-big-reflections-on-the-size-and-composition-of-todays-federal-government/)
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