[osullivj]

I've worked as permanent staff for ISV product companies and banks. I've also worked for a consulting firm on banking projects, and as a contractor at banks and ISV product companies. I could say a lot about the differences [1], but I'll confine myself to one point here: the interests of client and consultant are never truly aligned. Why? Because the consultancy wants maximum duration and headcount from any project to maximise billing. The client wants the project done, and the consultants gone. Yes, I'm assuming time and material billing here, not fixed price. That misalignment means that the consulting org can never really be honest with the client about the true state of the project. I've seen this play out at a cost of tens of millions at first hand. And we've all seen it in industry news, often with large govt contracts.

[1] https://etrading.wordpress.com/2006/05/31/permie-vs-consulta...