Rahul,

It could be a good deal for folks who are well settled but not well paid. 90 - 100 per hr comes up to be almost 200K per year. Now, some may think its a pretty good amount.

I agree with you that it is not a better option for everyone but it could be for some.

Why not rather hire a fresher guy at $40/hr and train him in the company itself as full time employee??That way you would be saving $50/hr too.

I agree with this too..when i have my own fortune 500 company i plan to do that. But this fortune 500 company doesn't seem to line with your belief.