PUBLIC SERVICES – Outsourcing of supporting services in the Government Departments – Guidelines – Orders – Issued.

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G.O.Rt.No. 4459                                                                            Dated: 27.12.2006.

                                                                                                Read the following:-

1.      G.O.Rt.No. 2501, Finance (SMPC) Department, Dated: 13.7.2006.




Government have decided for outsourcing certain services in the Government departments to the agencies and accordingly Government have outsourcing the responsibility of supplying the required manpower to the private agencies.  Accordingly Government have permitted several departments to outsource certain functions and functionaries for support services.


2.         Specific guidelines on outsourcing or on method of outsourcing and the qualifications for the outsourcing agencies have not been prescribed by the Government resulting in lot of complaints about the manner in which the outsourcing is presently taking place.


3.         In order to have specific guidelines for outsourcing the services in the Government Departments, Government after careful examination hereby issue the guidelines as annexed to the G.O. for better implementation of the functions under outsourcing.


4.         It is also ordered that a Committee with the following officers is constituted for selection of outsourcing agencies at the district level headed by the District Collector since most of the outsourcing of the functions and functionaries in the districts is done locally.


District Collector                             Chairman.

Dy. Director T&A                             Member.

District Labour Officer                    Member

District Employment Officer          Member –Convener.


5.         The District Employment Officer at the district level is the officer responsible to move the proposal for outsourcing of the functions and functionaries and take the orders of the Collector and other Members concerned.






6.         It is also ordered that for outsourcing the functions and functionaries in the offices located at Hyderabad both at Secretariat and Heads of Departments, the General Administration (Services) Department shall act as nodal department since they are dealing with service matters and finalize the outsourcing agency/ agencies from whom the Departments located at Hyderabad would access their requirements.


7.         All the departments of the Secretariat, Heads of Departments and all the District Collectors are requested to follow the guidelines scrupulously and should ensure that the identification and allotment of the work to the outsourcing agencies should be done in a transparent manner going to the open tender as indicated in the reference cited.








All the Departments of the Secretariat.

All the Heads of Departments.

The Director of Treasuries and Accounts, A.P., Hyderabad.

The Pay& Accounts Officer, Hyderabad.

The Dy. P.A.O. Secretariat Branch, Hyderabad.

All the District Collectors.

All the Dy. Directors O/o D.T.O. in the State.

All the District Employment Officers.

All the District Labour Officers.



// Forwarded :: By Order//





Annexure to G.O.Rt.No. 4459, Fin. (SMPC) Dept., Dt: 27.12.2006.




The Head of Office or Department who is principal employer should get permission from the Government in Finance Department to engage for outsourcing the services.


2.         The principal employer for outsourcing Agencies shall have to register his office or department as per the provisions of Contract Labour (Regulation and Adoption) Act, 1970 to engage the outsourcing services.


3.         The principal employer i.e. Heads of Department or Head of Office shall get registration certificate under section-7 of the said Act, 1970. 


4.         When the outsourcing Agency gets the permission from the HOD/Head of Office for outsourcing the services in the said Department or Office, the details of registration of principal employer shall be furnished to the Labour Department under section 13 of the said Labour Act, 1970 and rules made there under for grant of license. 


5.         The outsourcing agency at the time of obtaining contract labour license for supplying man power to the principal employer shall pay necessary fees and deposits into the Government Treasury as per the provision of the said Act.


6.         The Outsourcing Agency shall renew its license every year. 


7.         The individuals sent by the outsourcing Agency are eligible for 15 days Casual Leave per year or proportionately to the actual outsourcing period and there shall not be any reduction from the remuneration due to availing of such Casual Leave.


8.         The outsourcing Agency is responsible for payment of remuneration to each individual by the Agency before the expiry of such period as prescribed.


9.         The outsourcing Agency should pay the remuneration as ordered by the Government from time to time to the categories of posts indicated therein.  This should be closely monitored by the department and any violation in this regard should be brought to the notice of the Collector in the district or Secretary, General Administration (Services) Department at Hyderabad as the case may be who will black-list concerned agency against whom such complaints on verification are found true.





10.       The women individuals are eligible for 120 days maternity leave without paying remuneration for the said period.


11.       E.S.I. contribution will be made as per rules. 


12.       As far as E.P.F. is concerned employees contribution would be deducted from his remuneration, as far as employers contribution is concerned agency will pay it.  There will be no reimbursement of this amount separately to the agency and the agency has to quote its commission keeping this in mind.  However a certificate should be produced by the agency regarding proper remittance of EPF/ESI for release of payment for subsequent month.


13.       Payment of service tax is the responsibility of the agent and he will hence to quote his commission including this as well.