Closing that office was one of the required cost savings in the Aspire contract and it would have happened regardless of who won.The IR were too cowardly to do it themselves (bad for the morale of other Civil Servants no doubt, not to mention the bad publicity for the Government) so they opted to pay the supplier to do the dirty work.
an all too common occurrence, not just in government but other industries too.
It's not just the staff that get outsourced, the bad publicity goes too.