Ask HN: Why don't companies hire IT freelancers directly vs. body shopping?
This type of companies, the so-called body shopping agencies will basically post a job add in some forums, call you to ask your rate, forward your CV by email after adding a logo, call you to setup an interview,send a contract to sign and charge 15% to 25% for the life of the contract to the customer.
More often than not, in my view they mostly act as a parasitical intermediary with no added value after the initial contact.
Some create an internal culture where they throw a fancy party from time to time, where some manager says that ''we are not a body agency like the others, blah blah', job rotation procedures that don't exist in reality, etc.
My main question is: why don't companies hire freelancers directly? They could have the same person for a reduced margin of 15% to 25%, that offsets largelly the administrative costs.
They probably can't keep the person for 10 years because the law would say they need to hire the person as an employee. But one to 3 year contracts and then rotate would work for example?
Why do companies keep feeding this human trade industry, that does not seem to be so pervasive in other professions.
Is this changing on some countries, do companies usually work directly with freelancers?