Consultants versus Contractors / Consultancies versus Recruiters

Steve Eichert points to "Consulting vs. Contracting" which has a nice discussion on the difference between the two.  Having been on both sides of the fence, I agree that consulting is the favorable option.  At Thycotic, we have the support of our team, the reputation of the company and the strength of our accomplishments in the form of successful projects, products, training and speaking engagements.

Contractors are a commodity that can be brought in to solve a known problem that requires specific skills or just raw manpower often for extended periods.  Consultants are involved in problem solving - usually with a broad set of skills and experiences - all designed to bring the highest expertise to provide the solution and then leave the client till the next occasion.

As a consulting shop, another distinction we commonly encounter is competing with recruiters.  Do clients understand the real difference between a placement company and a true consultancy?  In the past, companies have had close ties to recruiters for finding permanent hires but with the increase in contractors in past years this relationship has taken a different form.  Are recruiters the best people to solve the client's problems?  How many client's know about their local consulting shops?

For the client - highly skilled problem solvers with the experience and support infrastructure to succeed. 
For the consultant - valued input, team support - challenging problems!

What are your experiences?  Which do you prefer?

(Humor)  And for the cynics amongst us ... Consulting.