compensation and benefits is often a deciding factor for man

compensation and benefits is often a deciding factor for many companies for those considering outsourcing jobs. Give an example of an ethical situation that may arise while outsourcing a part of your (or any) company operations. How should the situation be handled?

Solution

Take the example of a bank which has outsourced the function of filing \"tax deducted at source\" returns to a professional accountancy/audit firm.

The bank deducts taxes on various payments it makes to its employees, vendors, landlord, contractors. A return has to be filed on a quarterly basis for these taxes deducted. The bank has outsourced this function to a professional accountancy/audit firm which takes care of all documentation and legal work.

The situation demands that the job be outsourced to the best and the most professional firm. The ethical situation or dilemma is that the bank should not compromise on the quality of the professional firm to save its costs in terms of compensation that will be paid to the accountancy/audit firm.

The situation should be handled in a pragmatic way by giving the highest importance to the competency and professionalsim of the firms being considered. The cost in terms of compensation should be considered after this.