The contracting out of routine services and some sensitive functions has grown rapidly at every level of government in the United States. It not only has become a new method for human resource managers to provide needed public services, but it also poses new challenges for personnel management and for the training responsibilities of future public administrators. What accounts for the growth of privatization in recent years, despite strong and persistent opposition? This article suggests that the disappearance of some revenue sources accounts for the growth. Another factor is that the intellectual climate supports a shift away from public programs toward the private sector. For personnel specialists privatization carries with it a risk of transition in allegiance from the public to the private sector. This development leaves workers at the mercy of the marketplace and steps away from the government protection that they had once enjoyed. The article recommends that privatization should be limited to only those services that the people are willing to monitor or risk in order to safeguard democratic accountability.