I think you would find that if you got rid of "quangos", rosequartz which are in many cases, government departments put at arms length in a effort to make them more efficient, many if not all would go back to being government departments.
I worked for one at one stage and the people with the specific knowledge for the area we were in had been changed many times. They had all worked together before, and then not as the areas were separated out, and then back together. Usually there is a small group with the core knowledge and very few others in the country that have that knowledge. You might redistribute them and save by getting rid of a few highly paid CEOs but they would no doubt come under a highly paid someone else. These people are usually very good at knowing how government works but can milk their positions. So, you may, in the end, get rid of a few highly paid people, who would be replaced by one or two fewer highly paid people with the savings being off-set by the costs of change.