Is it better to be a vendor or an FTE at Microsoft? Pros/cons?
How is that even a question?
Vendors are the slaves; FTEs are the slave drivers
FTEs have better benefits and a career path and stock. Vendors can work from home, not have true responsibility and less work politics. Some vendors make more take home pay than FTE but not all. The work is different FTEs own programs and vendors work on them
Vendors are typically given shit work and are treated like outsiders at Microsoft
and just about everywhere else