When we first started there were two types of consultant, one was a external resource who was hired to perform some outsourcing activity and the other was a person hired and installed into a role within the organisation in usually a senior position. This second role was the role of a 'contractor' as we would define it.
For both parties it was a harmonious relationship the business hiring a consultant may pay more for the role but without any of the added complications such as managing people or the financial burdens of employment tax payments and benefits. The consultant would work to an agreed specification and be given a limited contract with a clear set of objectives. If the project was a success the business may have renewed or continued with the consultant and if it wasn't they could dispense with the services without a lengthy transitional process.
Equally for the contractor it was a similar path, a clear engagement, usually at a Director level and both parties got a good deal, highly skilled person doing the role they needed to fill but hired and started without the time it takes to find such a resource.
In both cases it is usually a good fit, the businesses get good people with a long CV who are highly skilled and add value to their organisation and the contractor or Consultant can free-lance being self-employed and work in projects that have many challenges, face tough deadlines but are very rewarding. One of the features of this for the contractor and consultant is that there is a great deal of varied working assignments. This keeps the interest high and the motivation levels in check - every day is different is a phrase most of these professionals will mention usually to their co-workers.
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