Managing financials in the Canadian Public sector Case Study

Managing financials in the Canadian Public sector - Case Study Example In other approach, contracting these services would create room for specialization; the companies will use the best janitors/ janitresses in the job to enhance quality and efficiency thus cutting down on extra costs for the same job, and employees will have ample time to serve the members of the public assuming that these companies will be doing their tasks efficiently and on timely manner (Frey, 2005). Further, outsourcing these services to other companies has a financial merit in the long run; apart from one time severance payment the ministry will cut off the recurrent expenditure in the subsequent years, these companies will dedicate their skills and expertise to offer quality services with hope of license renewal after five years, with which the surplus can be channeled in other sectors/ ministries. Externalities such as injuries to employees while doing the janitorial services in a rush to get started for the day’s work will be ruled out once the contracting process is c omplete. Retaining in-house services on the other hand might be profitable in the short run as the employees are engaged in other creative activities but it is costly to the financiers or the exchequer in the long run. Contracting route on the other hand is faced by legal and other challenges which can socially and /or economically tumble the wellbeing of the country and the public confidence towards the ministry. For instance, depending with the government’s provision for public contracts, a 35% requirement (Graham & Q.U, 2005) would mean that the favorite bidder would be Adanac Cleaners who despite their costly service of $440000 a year have a greater chance of approval from the government. The major problem for the management will be the decision making process on which company to award the contract factoring in issues of cost, performance and the public policies by the government. Question 2: The major external control factors to be considered in