A preferred supplier Agreement, or PSA, is an agreement between any organization and one of their recruitment vendors.
The agreement is designed for the parties to work closely on an ongoing basis under certain conditions, where both the organization and recruitment vendors are benefited.
The organization benefits as the recruitment vendor gives them priority and delivers the best results. The Recruitment vendor will enjoy predictable business & cash flow. These contracts are set for a specific time period and are either renewed or discontinued depending on the situation. When an organization chooses to discontinue their PSA with their vendor, it creates an opportunity for different vendors to become the new Preferred Vendor .