Hi Sapan - i am currently a red badge at Cisco in the UK.
You are correct in your initial comments - but that is a given when comparing any permanent role to a contract role.
Cisco signs contractors in quarters -you maybe told that this is a six month deal, however your project/role is reviewed at the three month marker and Cisco still needs to ensure the SOW (statement of work) & PO (position offer) is up to date. Projects are outlined and the duration of the project is specified by the managers, Cisco is very precise when it comes to the SOW. If you do well you maybe asked to take part in other projects and be asked to stay longer - if this is within the budget of course.
When it comes to being in the Cisco office/campus the difference between red and blue badges is very clear. You will not be able to take part in team outings that Cisco is paying for, although managers will say you can come - But you have to either take the time as unpaid or make the time up and Cisco will not pay for you. Also you do not have access to training courses and most of the Cisco intranet is locked down from contractor access ie - your Cisco ID is restricted. You will get chance to attend the "All Hands" which most offices have - this is where one of the managers, directors or even SVP/VP's is talking about the future and what they have planned. You get a Q&A after also, which is a great time to ask questions you may have. For example this week we had Chris Young in our office - and i was able to ask him a few questions (he is a really great guy).
A lot of red badges become blue badges, it is a great way into the big red machine.