Utilizing contract employees for a project vs. loaned internal company employees:

This is a very difficult question to answer directly, and the biggest advantage of using loaned internal companies is that their loyalty to the company can never be questioned, but they cannot have the same sense of urgency which an outside contract employee will have. The benefits of external contract employees are in terms of being charged only for actual hours; even if the company has a hiring freeze, staff may be increased; the responsibility for getting suitable candidates is with the contract service company; the method is quick and convenient for increasing or decreasing staff; contract workers know that they are employed on a temporary basis and so accept their removal without any prejudice and this is an excellent resource to a wide range of proven and experienced talent. (Positive Values of Utilizing Contract Employees)

The other benefits to the company is that it removes costs for employment and advertising; the company has the choice of recruiting good workers after seeing them on the job; the supplier company has to take care of payrolls, employee benefits, mandated levies, submission of government required reports and going through required tests like drug testing, reference checking, degree verification, contractor training and others; and it reduces the effect that the extra numbers will have on the employees discharged by the customer. (Positive Values of Utilizing Contract Employees) At the same time, if the customer company has a large number of companies who are surplus, then it may be better to use them on the new project and find out their capabilities.

Employee committed to action, but poor analysis skills:

This sort of an individual may be used best for job functions like writing memoranda and letters as they will be able to write in a manner with correct organization and structure, correct grammar, proper language and terminology. Of course the person should be able to communicate with clarity. (Typical Management Competencies) If the person is unable to do that also, then there is no way but to dispose of him.
Conclusion:

To conclude, it may be said that managing of projects is not similar to managing the regular activities of production or service, and it is better that an expert be used for the purpose.

References

Advanced Scheduling Techniques" Retrieved at http://www.ce.cmu.edu/pmbook/11_Advanced_Scheduling_Techniques.html. Accessed 26 October, 2005

Digital Key Telephone System: Amended per Addendum 1" Retrieved at http://vendornet.state.wi.us/vendornet/wais/bulldocs/1492_2.doc. Accessed 26 October, 2005

Fundamental Scheduling Procedures" Retrieved at http://www.ce.cmu.edu/pmbook/10_Fundamental_Scheduling_Procedures.html. Accessed 26 October, 2005

Mochal, Tom. "Project Management Tips and Techniques Estimating Duration and Cost"

Retrieved at http://www.quest-pipelines.com/newsletter-v5/0304_E.htm. Accessed 26 October, 2005

Positive Values of Utilizing Contract Employees" Retrieved at http://jobs.usainc.com/A1.html. Accessed 26 October, 2005

Typical Management Competencies" Retrieved at http://hr.web.cmu.edu/forms/managers/CompetenciesManagers.pdf. Accessed 26 October, 2005