|Contract Resource||Permanent Resource|
♠ Resources available for short periods.
♠ Quick Turn around time.
♠ Need not take responsibility of PF, Medical etc.
♠ Replacement provided on short notice.
♠ Huge cost saving for projects requirements <12 months.
♠ Candidates skills can be assessed in real time and if desired can be enrolled to permanence on meeting set performance criteria. (This eliminates selection of wrong candidature through written tests and interviews)
♠ Successful model when recruiting candidates where experience level is less than 5 years.Disadvantage
♠ Not profitable on long term as costs involved will be slightly higher.
♠ Availability of resources who are highly skilled (5+yrs exp) and with managerial capabilities is scarce or Costs are high.
♠ Attrition is lesser.
♠ Long-term advantage in terms of cost saving.
♠ Highly skilled resources with managerial resources available at much lesser costs.
♠ Candidates are more committed.
♠ Resources are more responsible and hence companies can have higher sense of security.Disadvantage
♠ Selection process is extensive and involves high costs and effort.
♠ All capabilities are not measured during selection. (Could land up selecting the wrong candidate).
♠ Company is responsible for all fringe benefits, PF, insurance, medical and other HR activities.
♠ A loss making proposition when bench period between projects are too long.