Basically this means that the position you are hired for states upfront that it will last for a fixed amount of time, say three months, six months, a year, etc. contract can be get renewed for the for the smillar time depending upon the companies requirements.

Contract employees can be hired on hring companys roll or on staffing companies rolls (this means you will be working for a XYZ Ltd but your payroll will be managed by other payroll management companies like (Strance HR Solutions).

During your contract term, staffing company takes complete responsibility for all your HR Administrative activities, statutory employee benefits and compliances activities related to your employment.

The operational and performance related aspects are monitored by the hring company and the hiring company retains complete control of the same.

for more details pros and cons of Contract employment please read this article Source: Monster