Outsourced = expense
Salary increase = fixed cost can only write-off %.
It's probably the other managers who don't have the issue not wanting to increase their wages. Or explaining why the worst employees were paid more etc.
> explaining why the worst employees were paid more
except they were likely only viewed as 'worst employees' because of the theft. stopping theft - internal and external - would normally be chalked up to 'best employees', who would be quite deserving of raises (in a hypothetical world).