In the name of welfare privatization, there are so many changes in the deli very system of social services in Taiwan. It is claimed that public financial problems, social services quality, and citizen participation will be improved by the strategies of contracting out. According to Principal-Agent Theory, bureaucratic autonomy that is the main reason of services inefficiencies will be reduced by these strategies. However, we doubt this kind of argument. In our study, I intend to point out that the space of welfare bureaucracy will be expanded. Taiwan's government outsourcing experience is probably different from western. And these results are not so bad for us. It means that it is still possible that governmen outsourcing to NGOs/private sector is beneficial which is a good example of privatization on government policy, that will help improve the quality of service.