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This paper aims to provide a brief overview of outsourcing and the extent of its use in Australia, a discussion of some of the key human resources management (HRM) and employee relations (ER) issues arising from outsourcing, and suggestions for further research. The paper defines outsourcing as a situation where 'an external vendor provides, on a recurring basis, a service that would normally be performed within the organisation'. HRM/ER issues discussed include the employee relations climate, employee commitment, training skills, trade unionism, occupational health and safety, unemployment and legal aspects.