We quite literally need to look at every part of government and what the public sector does, and rethink who should be making the decisions about how they function and what they do, based on the who, the why, the what, and with only the delivery itself becoming an issue of cost.
The technology now exists to ensure that even if operational delivery is implemented at a broader level or by a service delivery organisation of some kind, the decisions about that delivery can now be taken as locally as it is possible for them to be.