Eli5: how do temp agencies, suppliers, msps, and corporations all work? How don’t companies directly hire? Why are there so many dimensions? How do they all work in unison?
In: Economics
>How don’t companies directly hire?
Because it’s cheaper to pay a business, who’s entire business is to deal with that type of stuff, to do it instead of having people on your payroll who don’t need to do it 24/7 because a business likely isn’t hiring constantly.
A business(corporation) talks to a temp agency and gives them their requirements for the job(s) they need to fill. The Temp agency then goes through all of the people in their system who match that criteria. They then send the required number of people needed to fill whatever positions the business is looking for.
Suppliers are just businesses who have products that a business needs and they sell them to the business. Generally a business will have a contract with a single supplier for specific products making them the sole business they’ll get those products from with a guarantee that they will get you the products you need, when you need it (hopefully).
Apparently MSPS is an outside IT company. The same as a temp service, it might be cheaper to pay them over having your own in-house IT department.
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