A couple of points spring to my mind. Firstly, there is likely to be a Transfer of Undertakings (Protection of Employment) (TUPE) requirement on the GOCO so don't expect there to suddenly be a 'clean sweep' with lots of new staff.
Secondly, there might just be a chance that a commercial outfit might force the DE&S system to clean up its act. Perhaps this would prevent the sort of recent farce witnessed in a major UOR, in which the bizzare requirements set in the SRD guaranteed that no bidder could be compliant with the ITT! Net effect - significant delays in delivering an operational capability to the front line, and additional costs to the bidders, who all now have to re-compete against a revised SRD. DE&S' own rules state that the MOD expects bid costs to be recouped by the winning team in the delivery phase, so who do you think will ultimately be picking up the tab?
I work for a small commercial outfit and if we operated in the manner DE&S did, we'd be out of business in no time....