No outsourcing appointments without Odisha Finance Department’s approval; govt issues new directive

The Odisha government has issued a strict directive prohibiting all departments from making outsourcing appointments without prior approval from the Finance Department. This move aims to streamline workforce management, ensure fiscal discipline, and avoid unauthorized recruitment through third-party contracts.

In an official circular, the Finance Department has informed all government departments in writing that no new outsourcing engagements can be initiated unless they have received formal sanction. The letter clearly states that Finance Department approval is mandatory not only for new outsourcing appointments but also for renewals of previously sanctioned posts.

Furthermore, if a department already has prior approval for outsourcing manpower, they must still obtain fresh permission for renewal at the end of the contract period. Importantly, any increase in the number of outsourced personnel beyond the originally sanctioned count will also require additional clearance.

This instruction is expected to bring tighter control over workforce outsourcing and curb unplanned expenditures by various departments. The Finance Department's directive comes amid growing scrutiny over the rising trend of outsourced appointments in public offices.

All departments have been asked to comply with the new guidelines with immediate effect. Non-compliance may attract administrative action or rejection of payments related to unauthorized outsourcing contracts.

This step is part of Odisha’s broader effort to ensure transparent recruitment practices, financial accountability, and the efficient use of public funds.

“Pior concurrence of Finance Department is mandatorily required for engaging manpower on outsourcing basis. However, concurrence of Finance Department is not required for subsequent renewal of such engagement if the post-renewal number of manpower to be engaged is not more than the number approved by Finance Department,” the official notification read.

But, if more number of manpower is proposed to be engaged at the renewal stage, prior concurrence of Finance Department shall be required for the additional number of manpower proposed to be engaged.