The Importance of Non-Disclosure Agreements in Outsourcing Software Development

A Non-Disclosure Agreement (NDA) is a term which describes a pact between two or more parties. It is used to limit the original members from telling the information to someone else or to someone who is not part of the initial agreement. Such an agreement is usually done to make sure that important information is not leaked or is made public. Such an agreement is necessary to use when trade secrets are discussed and is used when a new and previously not known technology is used. Usually, this type of agreement is signed when organizations are in practice of using the concept of outsourcing.

Outsourcing is somewhat of a new procedure where organizations are looking for cheaper way to get their work done. Outsourcing can be either Near-shore or Off-shore. The major difference between the two methods is based on geography. In near-shore outsourcing practices, an organisation looks for closer partners to work with. Partners with which the outsourcing firm shares the same time zone, language and work standards are preferable. In contrast, when offshore outsourcing is used, firms work with partners who are in a completely new region which follows a different time zone and has different working standards. Firms when using the concept of outsourcing for software development need to share important information with their partners and trust them that the information will not be leaked or made available to a third person. In such case, outsourcing firms usually ask their outsourced partners to sign an NDA. The importance of following such a practice is high because companies, while outsourcing, allow outside employees to go through private details of the firm like information about the company’s shareholders and the type of technology and working methods they use. If such information is made public, competitors and rival firms can significantly benefit from it.

Companies using outsourcing partners to develop software for any purpose are more careful and usually ask their offshore software development partners to sign a NDA form. Obviously there are threats in offshore software development and these firms must be careful of virus attacks or being a victim of counterfeiting. In some cases, firms ask their outsourcing partners to develop certain software to operate machinery or equipment which is new and not many people are aware of it. This technology may be part of the firm’s strategy and the organization does not want that information be disclosed. In this case, having a NDA with the outsourced partners is critical as they are aware of what information they cannot disclose to an external source. Furthermore, the benefit of using a NDA is that it makes sure that there are no communication gaps between the two partners. Everyone is aware of their roles and they know what is right and what is wrong. This allows the entire work procedure to run smoothly without any unnecessary stoppages.

Lastly, for those businesses that are using outsourcing to develop their company software must be aware about the use of NDA. Through an NDA, they can limit the use of their outsourcing partner and restrict them only towards the actual job they are hired to do. The outsourcing organization can always be in control when using NDA. If something goes wrong through the use of NDA, the firm can control the damages. Also the outsourced partner is aware of the legal cost if they break the pact. Therefore, it is good that firms who use outsourcing partners make a NDA and get it approved by their partners. Businesses that are in the information and technology industry are now adopting the use of NDA as outsourcing has become a common practice.

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Why it is Safe to sign a Non-Disclosure agreement with an Offshore Software Development Company?

“The most valuable business commodity is Trust! For any successful business, there must be a higher level of trust between the two parties. But it is next to impossible to trust over someone when the business will run over a unique idea or intellectual property instead of any tangible property. Isn’t? There are many burning examples where the business man has reached to a great level with the help of other’s idea being stolen. Even one of the top IT giants in the industry had made its presence in the industry with the virtue of someone else’s idea. In IT industry there is a terrific threat of loss of business idea or we can say Intellectual property during the transaction, so it is always recommended to take all possible measures to avoid any such unpleasant experience”.

What is Non-Disclosure Agreement (NDA)? The best way to keep something under your control is through a legal agreement. Similarly, to keep your idea secret from others, you can make an agreement with your business partner for the future of your hard earned money. When you choose to outsource your application development work to an offshore software development company, you must process an agreement with them about the secrecy of your intellectual property otherwise your idea may be executed by them in their name and they will get all benefits of yours and you will end up with a huge financial loss. To avoid this issue, you can take the help of NDA i.e. Non Disclosure Agreement. NDA is a legal entity or legally enforceable contract that prohibits the leak of your information in the industry from the offshore software firm. It keeps every aspect into consideration like no leak of intellectual property during and after the development process by anybody who are associated with your project development. There are many other things to consider as well for a good business. We will consider them latter.

Safety and NDA: IT industry is driven by an intangible idea or we can say intellectual property. A good concept can make you billionaire if get executed properly. Facebook, Twitter or Orkut all are nothing but a concept or simply idea; but their execution was so beautiful that they become a one website industry. This hints the importance of new concept or idea for a successful business. If their idea would have stolen before the launch of these products, then what would happen? They could never turn out as a successful business model. So, while developing any application or product, we must make sure that our idea is safe with the offshore company otherwise we cannot achieve what we are dreaming for. Non-Disclosure Agreement can definitely help you as a strong safety measure.

Should you sign a NDA with an Offshore Software Development Company? This is the biggest question regarding NDA. Yes, there is definitely need of NDA for the success of your business; but the NDA should be comprehensive enough. If you have not focused on every aspect of security threats for your application or product then, NDA is simply worthless. Make sure that the Non Disclosure Agreement that you are going to sign with your offshore software firm is really beneficial for you. Because sometimes, some unreliable software companies hide some terms and conditions in the NDA and that might create a big problem for you in future. Imagine they have prepared a Non Disclosure Agreement for you regarding keeping secrecy of your idea during the development process. But if you disconnect your relation with them for some reason during the process then what would happen? Will they still continue to keep your idea secret or not? If they will start a new product with your idea and launch it in the market before yours then what will happen? It can create heavy loss for you. So you should read each and every terms and conditions of the agreement before you sign it with your partner. You should check every detail of the NDA and if something is missing you should ask for modification before you sign up.

Make sure you have taken all possible steps before preparing a NDA: Signing a Non Disclosure Agreement with your partner is a good idea; but again it should be compressive enough to keep your intellectual property safe for longer. It is always recommended to prepare your NDA with the consultation of legal advisors from both parties. Sometimes, some rules are followed strictly in a country while it has no significance in a different country. So, it will create problem in future. For a secure business, you should consult legal advocates from both locations i.e. from yours and from the land of developing country so that you can prepare a strong NDA for your concept. There should not be any loophole in your NDA. For the same; you can take help of any other businessman who have experience in outsourcing project to a remote location. His experiences will definitely help you lot while preparing the NDA. He can inform you all possible threats associated and accordingly you can access and prepare a better and stronger NDA.

It can avoid all possible threats in your business: With NDA, you can avoid all possible threats of loss of information about your concept only if it is really detailed enough. Once you able to prepare it properly with all possible consideration it will help you a lot till the end of your project. Few important considerations are: must include all members of the development team of the offshore software firm in your NDA; because they may disclose it to someone else or even on the social networking sites. So, you must enforce them in prohibiting from these types of behaviour. 2ndly, what would be the time period? Usually, people keep it up to the end of the project, but that is not at all wise!! You should keep some extra time beyond the project duration for your safety; something like extra 2 years or so on sounds better. Now, you should also ask for extremely tight security of your project codes, designs and discussions with the developers or project manager; because they are the core element of your project. The offshore software firm should be asked to sign NDA from all its associated employees to avoid any leakage of information in the process. If all these things are considered and made available in the NDA, then you need not to bother about your intellectual property and have a peaceful sleep at night.

At Mindfire Solutions, we are experts in offshore small team software development and we have been serving our 300+ esteemed clients more than 15 years now and have executed over 1000 projects in various technologies and domains. If you have any custom application ideas in mind and need our expertise, please feel free to write to us at sales at mindfiresolutions dot com and we will revert back within a business day. You can also avail our limited period risk-free trial offer now.

Mistakes that Developers Make while Using 3rd Party API

Unlike a user interface, an application-programming interface (API) makes applications talk to each other without any user intervention. APIs are a set of programming instructions and standards that makes the user interface access other web tools and web-based software applications. Many companies, nowadays, make their APIs accessible to other businesses and users. So the software developers have option to use a wide range of third-party APIs to make their products powered by relevant services. But most developers forget some simple facts and commit common mistakes while designing software using third-party APIs.

Common Mistakes that Developers Make while Using 3^rd Party APIs

Ignoring Client-Side Problems

While using 3^rd party APIs, most developers forget the client-side problems. When a user requests a web page, the web page go to the API, the API in turn works from a remote source. Thus, the API takes some time to fetch the information from its originating source and deliver the web page to the user. Thus, an API can increase the web page request time. Many developers request for the API by making one-to-one ratio calls. The ways the calls are made can create problems at the client-side.

Inadequate Caching of Copies

Many developers even forget to create a cache for storing the API data for a shorter span of time. Normally, a business allows the public only to use their data through the API. But it does not permit users to capture any information. But the developers can always create a cache to store the information for a short time span. Despite having a shorter lifespan, the cache will make it easier for the developers to fetch the required information.

Not Checking Hang Time

When an application relies on a 3^rd party API to fetch and deliver information to users, the developers must remember that the interaction will take some time. Both processing the request and fetching the required information will require time. There are also chances that the applicator will not give any response to users when it is waiting for the data. The developers can use any web tool to identify the difference time gap between the request made by the users and the information delivered to the user. The developers must manage the hang time effectively to keep the users engaged.

Opting for XML over JSON

It is a common practice among developers to access 3^rd party APIs through XML. But they forget that JavaScript Object Notation (JSON) is more efficient and effective than XML to gather results from the API. JSON further allows developers to push raw API results through their response. Thus, JSON can push data faster by making the data stored on the server talking directly to the JavaScript code on the web page. Further, JSON makes the arrays and objects more flexible.

Not Testing the Code

Most programmers forget to check their code after integrating a 3^rd party API into their application. There are always chances that the use of an external API can have a huge impact on the functioning and performance of the web application. Further, some APIs need customization to work seamlessly with the software and deliver desired results. The 3^rd party APIs can be used without writing any complex code. But the developers must test their code thoroughly to ensure that the API complements the software’s functioning by delivering the expected results.

While using 3^rd party APIs, many developers even do not focus on legalities. When a company allows other developers to access its API, it requires them to adhere to the service agreement. So the developers must read the service agreement in detail while using or customizing the API. They must comply with the service agreement to optimize their software application’s performance without violating any rules. You can get in touch with a software development company India who can help you build web apps within allocated budgets and time schedules.

We provide software development services. If you would like to hire offshore developers for your web development needs. Please contact us at Mindfire Solutions.

How to Overcome Challenges Faced in Offshore Web Development?

Offshore web development has become a more or less standard practice of the majority of business organizations these days. Experts are of the view that offshore web development is the best way to cut costs. However, in order to ensure successful offshore web development, a company needs to successfully initiate as well as manage it. The entire process is easier said than done. This is because outsourced development is often plagued by a string of issues. Hence, there is an ardent need to address these issues effectively to overcome these challenges. Before discussing the ways to overcome them, let us mention what the issues are.

The principal problems that plague this phenomenon are lack of a feasible window for client participation, cultural difference, difference in cultural obligations, time difference, or difficulty in communication.

Appointment of onshore technical team lead

Often the companies assume that appointing someone for managing outsourced web development is enough. The person concerned will be able to take care of the development in their ‘spare times’ even after managing their regular responsibilities. This is, to say the least an absolutely disastrous decision. The best way is to appoint a professional on a full time basis who will be able to take care of the offshore developers. The core responsibilities should include explaining business priorities, giving various technical inputs, help in troubleshooting, and solve technical challenges. Providing training as well as mentorship to the remotely located developers also falls under his or her jurisdiction.

Corresponding with the offshore technical team

This is another important factor that needs to be taken into account. The onshore developers and technicians need to work in close coordination with their offshore counterparts. Besides, it should have the right to take technical as well as administrative decisions whenever needed. This prevents the technical bottleneck from forming.

Daily correspondence with the offshore team

It is absolutely imperative for the onshore developers to maintain a regular correspondence with those handling the outsourced work, via video conferencing. There should be a regular as well as constant correspondence between the two teams on a regular basis to chalk out strategies jointly and work in close liaison with each other. It is necessary for the two teams to know each other so as to eliminate any confusion or misunderstanding.

Besides, the onshore team needs to have a close interaction with the developers who are taking care of the outsourced works. The entire team needs to interact with the other team frequently. This practice helps the two teams to get used to each other. This also helps in understanding each other’s language, culture, work ethics, as well as other issues properly. In this way, the working environment can be improved by many folds, which impacts the end product in a great way.

Small Offshore team

The offshore team needs to be small. A small but highly efficient team is more effective than a large team comprising of some mediocre developers when it comes to handling outsourced projects. In case there is a large team that needs to be split into groups and trained in a proper way so as to improve the productivity.

The offshore team needs to participate in every facet of development as well as architecture. It also needs to take part in the design related discussions, though the responsibility of implementing the same should be on the onshore developers. This imparts a sense of agility into the developers, which in turn affects the productivity as well as its quality at the end of the day.

The web developers like to take up challenges thrown at them. Hence, when it comes to outsourcing, things are no different. In fact, a stiff challenge has in most of the times helped them to bring the best out of them. Hence, it is best to put up challenges in front of the offshore developers. This will help improve their performance and come up with some out-of-this world web solutions.

We provide web development services. If you would like to hire offshore developers from a software development company India, please contact us at Mindfire Solutions.