Abstract: The origin of purchase of service contracting (POSC) in the West can be traced back to the crisis of the welfare states including governments financial crisis and the subsequent government reform, the wave of marketoriented privatization of public services, and the rise of the idea of new public management. However, in this process of “entrustingbeing entrusted”, there exists a complicated principalagent relationship and multiple accountability issues. While the context in China is different, there is much room for exploring the content, specifications, and the purchasing ways of POSC. It is also imperative to avoid the hasty and overheated development of social work services. The article attempts to illustrate this argument through an example of social service organization in Guangzhou that was established years ago and has participated in the early stage of the government purchase of services.

Key words: government purchase of services, purchase of service contracting (POSC), contract entrusting, new public management, multiaccountability, principalagent relationship