Contract companies are hired by consulting or staffing agencies. They then place them into businesses that need help on projects. Contracts are typically 6-12 months.
Contracting work in a similar way to recruitment companies, they deploy workers on the request of their customer. These works can range from one off projects to maternity cover to relief staff. It is generally done on a daily rate or project basis, where the customer will predict how long a contractor is needed for and the Recruitment Company or Managed Services will then seek out the required talent.