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The answer to that could depend on any number of factors. I've known projects to begin with existing talent and then expand, and that may be the most common scenario. In other situations a company may start scaling up in terms of personnel months in advance, but that can get quite complicated in terms of hiring and onboarding and training.
They may not hire full time roles and instead hiring contractors and consultants
I think this applies depending on the nature of the project, and there is still a "hiring" time involved usually, although it is shorter
Sometimes both, it depends a lot of the demands of the project and what is in store after. If we know we won't need the employees after, then we tend to hire contractors. How fast it happens depends on how much notice we have for the project. We try to get everyone hired before it starts, but it doesn't usually work out that way. Needs tend to change as the project begins as well.
Does it ever happen in your company that you think you need contractors but then you realise you need a long term service contract to manage the project afterwards?
Usually hiring starts during planning once budgets are approved, not after launch, but not far ahead either. Requires tight coordination with project leads.