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Dragon_Lord said:
I don't get these companies strategy wouldn't it be cheaper to hire more people and not pay anyone overtime?


No, read about the Mythical Man Month as to why.

Essentially, it boils down to one woman can make a baby in nine months but three woman cannot make a baby in three months.  Adding more people does not always get things done quicker because some things depend on others.  You could have 1000 people working on a project but if you only have the bandwidth for 100 people then you have 900 people twiddling their thumbs.