1. When a company needs a specific skill set only for a short term, some of those skilled contractors or consultants don’t like to work full-time jobs.
2. Contractors are preferred when a company requires somebody on an immediate basis, as it takes more time to fill the full-time position. Interviews offer acceptance, relocation, etc. take a lot longer.
3. The cost of hiring contractors is much lessor than the full-time employees as the organization does not have to pay benefits like vacations, sick leaves, medical insurance and the likes. Even if they are prices higher on an hourly basis, they would comparatively less expensive for a project or for a limited time.
4. The temporary resource can be tested to see if he/she is a fit for the full-time job – and can be converted to permanent later
5. When a company is limited by its investor/owners/management to limit the headcount for the permanent employees to maintain long term commitment, expenses and workforce flexibility.