  We show that the outer automorphism group of a polycyclic-by-finite group is
an arithmetic group. This result follows from a detailed structural analysis of
the automorphism groups of such groups. We use an extended version of the
theory of the algebraic hull functor initiated by Mostow. We thus make
applicable refined methods from the theory of algebraic and arithmetic groups.
We also construct examples of polycyclic-by-finite groups which have an
automorphism group which does not contain an arithmetic group of finite index.
Finally we discuss applications of our results to the groups of homotopy
self-equivalences of K(\Gamma, 1)-spaces and obtain an extension of
arithmeticity results of Sullivan in rational homotopy theory.
