Squirrel, little bird tells me that most contracts are going to get longer. It may enable them to discount the future more but wait for that sting in the tail.
Certainly from my little corner it is working provided it does not cost any money. A bit like the old days pre-human asset counting with spare manpower, being paid regardless, whether there was work or not. Good management could direct them to where it mattered.
Now, within one contract, flexibility is restored but you try to deploy contractor X to contractor Ys unit for a surge!