Why only contract positions are offered by dhotis?

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I was wondering why is that dhotis consulting companies only offer job with contract. why can't they offer permanent jobs with the same criteria such as H1 processing or H1 trasfer or greencard process and 75/25 % or whatever? In my opinion, there are few reasons they do so : 1. Most permanent jobs require GC or citizenship 2. Most permanent jobs are competitive because americans also apply for these jobs rather than 6 months contract job. 3.Dhotis hold H1B but other companies do not 4.May be companies who have permanent jobs have payment system where they pay directly to employee not dhoti. Well, I can only think of above reasons so far. Please analyze them or add your opinions about it. I want to be clear on this. Also, american staffing firms do have permanent opportunities for job seekers who need H1 also ? How is that possible for them? Thanks for your any input.

realis

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Isn't there someone with logical answers ?

directX

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Because they are just a contractor not the real employer.

pupiffy

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To aviod a little thing called liability. When you are an employer you got lot of legal liabilities for your employee.

midwestdude

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realis, what you have to realize is that they are in it only for the money and not to provide you any service, at least that's what i think. i've been thru it so been there... done that. they offer you only contract positions because they can charge the company a VERY high rate. the rate for short term contracts are very high compared to salary positions. lets say, in los angeles a developer with 6 yrs of experience and green card can make about $100,000 plus benefits. but on contract the billing rate can be as high as $100/hr for a 6 month contract. the poor developer on H1b will actually get only $30 - 40/hr. so someone is actually making money. you can figure it out. with 2-4 levels of middlemen you won't get much of that $100. if you need to take this route...what you have to realise is that you have to use these desi consultants to your advantage. after you are in the contract start networking and making friends. then f*** the contract and start out on your own if you find a reliable H1B holder. try and minimize the number of middlemen.