Why a company chooses CONTRACT resource vs. PERMANENT employee?

I guess this is more of a question that I hope to get responses to...rather than a blog post.
I'm looking to compile various reasons a hiring manager or company would prefer to hire a contractor vs. a permanent employee.

Reasons OTHER than budgets and money. I understand the financial benefits...but lets talk about the OTHER reasons out there that managers hire contract resources for long-term positions.

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Comment by Brett Cullum on December 11, 2008 at 1:59pm: If something is project-oriented companies will drift towards contract. Let's say a big audit is coming up, or they are installing a new software. It's deadline sensitive work that will not continue after a specified date. No reason to bring in someone permanently, so go contract. I see this even when the project is years long.

Companies often turn to contract staffing when there is a hiring freeze. Can't hire someone fulltime? Well, make them a contractor. I could see that one.

Comment by Kent Sims on December 11, 2008 at 2:13pm: What are the advantages (or are there any) to hiring a contractor instead of a perm employee for a slot that could be perm? It is a long-term position, not project based, and the company is not on a hiring freeze?
What reasons would there be to bring on a contract resource instead of hiring a perm employee?