Corporations view

Driven by the need to reduce costs and increase flexibility many corporations have replaced thousands of regular employees with temporary workers and part-timers or have bid-out the work to smaller subcontractor firms. This brings two advantages - one is that the contingent workers cost less, partly because their hourly pay is often only half  that of regular employees partly because they receive far fewer fringe benefits such as paid vacations and health insurance. A second benefit of contingent employees is that they can be easily let go when the company no longer needs them in effect turning the quasi-fixed cost of regular employees into a variable cost.