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American English. Ratona's explanation is excellent: Ratona said: A supplier of goods/merchandise. A provider of care/service. Click to expand... The words are synonyms, but their use is different. A supplier gives material, products, merchandise, while a provider gives service.
In larger outsourcing contracts, specific workers allocated to the client by the provider are typically employees of that provider, or of a third party whom the provider has engaged. The client does not pay the worker, but pays the provider for the work against the contract and agreement. If the provider is incorporated, or defined as a company by the IRS, then their status and conditions are (normally) the legal responsibility of the provider.