This study focuses on the impact of outsourcing on labour-management relations in the banking sector, with reference to Diamond bank plc, Onitsha. The study was designed to explore the human relations aspect of outsourcing, as a result of which the Social Exchange theory was applied as the theoretical framework for this study. The research seeks to ascertain if outsourcing has any impact on labour and management relations, investigate whether outsourcing leads to conflict in the bank as well as discuss the effect of outsourcing on workers performance and organizational growth. This research made use of Chi-square Goodness-of-Fit statistical tool to test the hypotheses generated from this research in order to access the impact of outsourcing on labour-management relations, work performance and industrial conflict in the bank. A sample size of ninety-six was chosen for this study through the use Taro Yarmane’s formula, out of which, seventy-seven participants including managers, direct employees and outsourced staff responded to the questionnaires distributed for the purpose of this study. The research findings points to three main conclusions. First, outsourcing does not have any impact on labour-management relations. Secondly, outsourcing does not have a significant effect of workers’ performance and organizational growth. Lastly, outsourcing does not contribute to industrial conflict within diamond bank.
