Hi

Companies in India are now big on having manpower on temporary basis. Such resources are taken from Temp Staffing companies who hire candidates on their rolls and then have them placed on Client company rolls.

There are many 2nd tier SW firms who also place their resources to other SW companies on temp basis and these are termed "Contract Employees". Though these 2nd level SW companies essentially place their "Bench" as contract employees elsewhere, I also found out that they specifically hire resources just to have them "contracted" to other firms.

My question is what's the difference between Temp Staffing and Contract Staffing. Why should Client Companies pay Contract Staffing companies huge "Margins" (CTC + 20% Margin) for resources whilst Temp Staff Management Companies do the same service and all one has to pay is CTC + management fee.