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Some people are arguing councils have call centres and could do this work in a distributed way: https://www.theguardian.com/society/2020/may/05/private-covid-19-tracing-disaster-councils
I hate to reason that this makes sense on some level, but it does to me. Serco have huge call centres & call handling staff geared up for quickly taking on new contracts. Imagine trying to establish this from scratch via a new company, or within the NHS itself, at this point in time.