Often XX company also has a contract with the recruiting company, stating that after n months (typically 3-6 months) they can hire you without a conversion fee, or they can contract with you directly. The XX company generally has an upper hand in this type of negotiation, because the recuriting company wants their business.
So you can tell XX company you signed the 1 year term with the recruiting company. You hope to have net income $$$ per hour, and ask them what you should do. The XX company may work out a deal with the recruiting company and let you know. If not, you can negotiate with the recruiting company for your rate.
