Well, actually it is. you observed that it's often used in the context of the social security debate. I pointed to a clear example in Wikipedia, In fact, it's very often explicitly defined that way, e.g., from a quick google search.
http://www.answers.com/topic/privatization: "...Services formerly provided by government may be contracted out ..."
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Date: 22/2/11 18:06 (UTC)http://www.answers.com/topic/privatization: "...Services formerly provided by government may be contracted out ..."