The same underlying service is being done. It hasn't been cut. It's been shifted from a government service, to a private industry. The government pays roughly the same amount they were previously paying (or in a lot of cases slightly more, with the promise of paying less in the future), the private company provides the service as cheaply as they can, and takes a cut of the cost for profit, benefiting a small number of people, while providing a worse service level for tax payers.
This isn't a capitalism vs socialism thing. My issue with it is that privatization is blatant corruption sold as "capitalism". There's no capitalism here, because there's no competition, outside of the bidding on the contract. Competing on who can provide the cheapest service doesn't improve the service; in fact, it reduces the service quality to maximize profit. Reducing service quality to maximize profit would be fine, from a capitalism point of view, if others were offering the same service to the customer.
Capitalism would be to provide multiple options to the users of the service, and have the providers compete against each other in a proper market.
I used to work for the government (Naval Oceanographic Office), and I worked with the contracting agencies on areas that had been privatized and it was a nightmare. Every few years you'd have multiple companies bid to run the service, but for the most part the same contractor would win the bid because they wrote the software in such a way that only they could run. It had relatively no documentation, had piss poor processes wrapping it, and the subject matter experts worked for the contracting agency. When the contract did change, everything would grind to a halt. For sure, that was more expensive than the original government provided service, but once something is privatized, it can never go back.
I agree we need to have more nuance here. You for some reason think I'm suggesting that "things such as requisitions of commodity items" shouldn't be private, which is not at all what I'm saying. I'm saying that existing government provided services, like the post office, for example, are run cheaper and more effectively by the government, and turning services like these private is for the sake of corruption.