Most contractors, not SME, are sourced from staffing agencies/partners. Sure, the resource cost is on par with a salaried worker, but typically the staffing company sourcing these people are going to take a huge chunk on that contract, at least 1/3. So yes, the resource/person is 280K on paper, but it's extremely rare they actually get paid that. The staffing agencies will provide benefits, but they're not even close to what in house staff are getting.
It also becomes nearly impossible to hire a contractor from partners in cases like this because you have to buy out the resource on the contract which is almost a non-starter because these fees can easily be 6 figures per head.
