Yeah but you don't pay directly the salaries of the outsourced developers. You pay the amount stipulated in the contract for a job X. Usually the contractors have multiple clients and use those money to pay their employees's salaries.
Also I'm not sure that the salaries are higher. Salaries for developers, in the US for example are among the highest of all countries I can think of. I'm not sure that the salaries of the contractors are higher than those of someone you would have to hire.
Because they're usually willing to accept less money for more work.
Do they really reduce cost?
Yup.
But in general the salary of secondment staff is higher than permanent staff.
Yeah but you don't pay directly the salaries of the outsourced developers. You pay the amount stipulated in the contract for a job X. Usually the contractors have multiple clients and use those money to pay their employees's salaries.
Also I'm not sure that the salaries are higher. Salaries for developers, in the US for example are among the highest of all countries I can think of. I'm not sure that the salaries of the contractors are higher than those of someone you would have to hire.
I thinks secondment staff may not have multiple clients. It is very similar to contract job but the head count is under different company