Many societies, including Hong Kong, allow for outsourcing curriculum delivery to third parties using government funds (state-funded ed-outsourcing). Previous research conducted in other contexts at the respective levels of government and schools suggests that outsourced education perpetuates or even aggravates the educational inequity observed in overall education. However, empirical research documenting the interaction between government policies and school-level practices is very limited, especially in the Asian context. Considering the great role played by context in shaping the impact of a policy, there is a need for research that addresses this gap. This paper, drawing on government documents on relevant policies as well as reports on grant use allocated for ed-outsourcing from a third of Hong Kong secondary schools, shows that while the government is trying to ensure educational equity through ed-outsourcing, some equity-related issues have remained. It also identifies the factors contributing to the equity landscape around ed-outsourcing and presents policy suggestions to ensure the equity of education provided in partnership with third parties. Copyright © 2019 Asian Productivity Organization.