The Government of Odisha has introduced stringent new guidelines to regulate the outsourcing of manpower across its administrative departments, effective immediately.
A directive issued by Saswata Mishra, IAS, Principal Secretary of the Finance Department, on July 24, 2025, mandates that all departments must seek prior concurrence from the Finance Department before engaging manpower through outsourcing. This move aims to bring transparency and fiscal discipline to a practice that has seen growing use under the state’s Odisha BPO Policy 2021.
The circular, addressed to Development Commissioners, Additional Chief Secretaries, Principal Secretaries, Commissioners, and Secretaries across all departments, clarifies that while initial approval is mandatory, subsequent renewals of outsourcing contracts do not require fresh concurrence if the manpower numbers remain within the previously approved limits. However, any proposal to increase manpower at the renewal stage will necessitate re-approval from the Finance Department. This rule is designed to prevent unchecked hiring spikes that could strain the state’s budget.
The directive also addresses a potential misinterpretation of the Delegation of Financial Power Rules, 1978, amended on March 4, 2025. It emphasises that the delegated powers under Rule 12 are intended for contract execution and expenditure sanctioning, not as a means to bypass the mandatory requirement of obtaining Finance Department approval.
