So we end up with expensive consultants doing the work. Consultants have the wrong incentive. They don't want to stay in one place to long because it looks bad on their resume and overruns mean more money for them.
So really, I can see why a seasoned politician chooses the safest option for him. By the time an overrun occurs he will have moved on to the next job. I don't think left or right-wing politics has much to do with this dynamic. How will a left-wing politician magically get capable IT staff that higher paying industry can't even get enough of?