Well, what if they are fulfilling the role perfectly well, but by outsourcing you lose the role and the money they cost, and give the money instead to a private company which passes the profits to its shareholders. Is this fair on a perfectly competent individual? A lot of these affected individuals will be older (middle-management types being relatively senior, as these things go) and either forced into early retirement against their will, or forced into the jobs market where they will have to compete for posts against younger, cheaper competition.
You'll have guessed that I'm broadly ideologically opposed to outsourcing in the terms I think you're describing, because I'm not sure I've seen evidence that there are genuine savings to be had (the outsourcing firm needs to make a profit and pay investors and shareholders their due, and this is paid for by the client), and I've seen the harm, and the downright incompetence of many of the outsourcing firms: G4S, Serco, Capita...