What is an NDA and why to sign one with your software outsourcing partner?

September 22, 2022

Let’s say you have found a potential outsourcing software development company you would like to partner with to scale your business. Now, you are looking for a first discussion regarding the product you need and the services they can provide to you. To facilitate the communication and make sure they can offer what you expect, you will have to clearly enounce your needs and business goals related to that product. Therefore, sharing sensitive information can’t be avoided.

The good news is that the information you are going to provide can be protected by signing an NDA before the meeting with the outsourcing company.

What is an NDA?

When talking about software outsourcing, an NDA or a non-disclosure agreement is a legally binding contract between a customer willing to develop a digital product or to automate one of their services and a potential software development company they are willing to partner with. It is also known as a confidentiality agreement, and it aims to protect any information considered sensitive and any intellectual property for a predetermined period of time.

What should include an NDA?

The contents of an NDA can always be adapted to mirror your specific requirements and the ones of the software development company. There is still a set of important provisions that should be taken into consideration and stated in any such document.

  • Names of the parties signing the NDA;
  • The agreement of parties to keep the confidentiality;
  • A definition of the information counted as confidential;
  • Situations where the revealed information can be used, and the key actors warranted to access it;
  • Statements related to the use of the provided information;
  • The validity of the agreement and the date when it becomes effective;
  • Statement of no liability involved through the NDA for any of the parts and the fact that any further collaboration will be established through additional procedures and papers.

Other information could also be included, like mentioning which state laws are applied to the agreement and additional provisions any of the party finds necessary to put in. It is important to know that the violation of NDAs attracts legal effects for any of the party breaking it.

Are you currently looking for a software outsourcing partner? Go through our services, contact us to set a first meeting, and be ready to sign an NDA before it.

Mihaela Binzari
Content Manager

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