Assume you work for a U.S.-based financial services firm that positions itself as having experts that personally manage the clients’ accounts. The clients are unaware that most of the tax preparation work, the bookkeeping, and other record keeping are done by a company in India. The local office simply reviews the file and signs the cover letters. Yet as your manager pointed out, there is still only one person that manages each account. After recent news stories about the practice of offshoring sensitive transactions such as tax preparation, clients have been commenting about how grateful they are to have a local firm.

What, if anything, should you tell your clients about the firm’s practice of offshoring?