[rideg]

I would not say it is that flawed, since many of not most of these h1b folks work for these big companies. I don't know the exact numbers but around 2017 there were almost as many contractors at Google as FTEs working in the same offices on the same projects, but getting half or third of the FTE salaries.

[kube-system]

These large consultancies staff at a lot of places that aren’t big tech. While they certainly have some good talent the overwhelming reputation with body shops is that they place some pretty mediocre talent.

[SilverElfin]

> I don't know the exact numbers but around 2017 there were almost as many contractors at Google as FTEs working in the same offices on the same projects, but getting half or third of the FTE salaries.

Contractors get overtime. That’s why. It’s the same thing at most big companies when you compare contract and FTE for any position - one has higher salary and the other has overtime. It’s common for the contractor to actually have a higher annual (cash) comp.

[spwa4]

This reasoning obviously cannot compensate for a difference of more than 10% or so.

And in my experience in most places software contractors are paid more. Contractors are simply the people who are good enough to be technical people who demand higher salaries at non-FANG. They don't get, and don't have a need for, job security and in trade get a lot more dineros. This can be because of specialized knowledge (e.g. knowledge of bank protocols and encryption, including the softer side of it (ie. what particular kinds of encryption actually protect against)). These people are not needed often, and not constantly, but when they're needed they're critical. Hence, lots of pay, switch from bank to bank often. This exists for specialized mechanical engineers in defense too, for example.