why big companies are hiring in contract?
Question by kp r: why big companies are hiring in contract?
why are biggies like TCS, Wipro, GE etc are hiring experienced professionals in contract?Initially employees would be on the pay-role of some consultancy and these consultancies take them in saying that every employee would definitely get placed at their client location unless and until their performance is too bad .
How safe are these jobs?How about chances of getting permanently placed ?
Best answer:
Answer by scobranchi
If I understand your question you’re asking why these companies are hiring people as contractors as opposed to full time employees. If so, the answer is very simple…it’s easier and cheaper. Contract employees typically do not get the same benefits as full time employees. The get payed less, the company does not have to deal with health insurance, social security, etc. since they are not payed directly by the company. Also, it makes it much easier to adjust your staffing as your needs rapidly change. In other words, it’s easier and cheaper to layoff contractors (no unemployment costs) if things don’t work out or the company’s staffing needs change.
As for how safe the positions are or chances of getting a permanent position there’s no way to tell. In some companies it’s almost a lock while others may keep you as a contractor for years or even permanently. You would have to check with the company to see what the percentages are. If you were to interview with a company, I would say that asking about that would certainly be a legitimate question to ask.
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