Outsourcing App Development? This is What You Need to Know About NDA!

If you’ve come up with an out-of-the-box idea for a mobile app, then outsourcing the?app development?can be a great and cost-effective way to turn this idea into reality. Before you begin, though, there is an important step that you must take care of. This step includes signing a Non-Disclosure Agreement, or NDA with the company that you’re hiring for app development.

If you’re working with something unique and outstanding, then you want to be the first one to bring that idea into the market. By having an NDA in place, you can ensure that your valuable app idea and all the relevant sensitive information are protected. Let’s understand more deeply what an NDA is and how you can use it to keep your app-related data secure.

What is NDA?

Also known as a confidentiality agreement, an NDA refers to a legal agreement that requires the signing parties to maintain the secrecy of the sensitive information being shared between the parties and to not disclose any of this information to a 3rd party. Signing an NDA helps establish trust and confidence between the parties, allowing them to share necessary data without worrying about any leaks or misuse.?

?If you’re planning to outsource your project to a?mobile app development company India, then you should consider signing an NDA before getting into any extensive discussions with them.?

Why is NDA so important??

?When you’re sharing something as critical as your application idea and details related to its development with someone, you want to be 100% sure that your idea and information don’t get leaked or stolen. Imagine what could happen if your competition somehow gets their hands on your unique idea and launches an app based on it before you can. Then, it’ll be your competition making profits off of your great idea rather than you, since you’d no longer have the advantage of being a pioneer.?

?Furthermore, when you spend substantial money and effort on app development, you do so with the hope of earning high returns on your investments. But, if confidential data isn’t properly handled and gets leaked, your investments could simply go to waste.?

?With an NDA, you can protect yourself against such unfavourable circumstances. The NDA gives your critical app-related information much-needed legal protection. Moreover, signing an NDA gives you the ability to take necessary legal action if any of your confidential data is disclosed thus hurting your business financially.?

?How to make the best use of your NDA??

?You can use NDA to protect a wide range of sensitive information. These include consumer databases, employee information, particular ideas, strategies, etc.?

?Certain important elements should be included in NDA, here’s a look at some of these.

?What classifies as confidential information?

?It’s vital to have a clause in your NDA clearly defining what comes under the realm of confidential data, to help your?app development company?comprehend what information they need to handle carefully. You should get as specific as possible in this clause so that there’s no room for any misinterpretation. You could also mention what type of data is non-confidential, for example, any publicly known information.?

?How to use the data being shared?

?Ensuring that your data is being used for the right purpose and in the right manner is necessary. Hence, another vital clause to include in NDA is explaining how the app development company may use the data that you’re sharing with them. This clause would help in preventing your data from being misused.?

?What does data disclosure mean and when is it permitted?

?In this section, you should define what you consider to be an illegal or impermissible disclosure of your sensitive data. Selling the data or revealing it to any unauthorized party are a few examples. Also, you should mention the unavoidable cases/instances in which the data disclosure is allowed, for example in case of any legal compliance.

?How long does the NDA stand for?

?In this clause, you mention how long will the NDA be valid. The validity span of an NDA is the time, which could be anything from months to years, for which the app development company is required to keep your data confidential. To decide the right timeline for your NDA, you need to take into account your specific company needs. Think about how long the confidential information you’re sharing is likely to be relevant and important for your company, and then specify the NDA duration accordingly.

?How should the data be returned/destroyed?

?You must outline how the app development company should return or destroy the sensitive information once the project or the agreement has concluded. Be as thorough as possible when writing down this clause, considering all the possible channels that may have been used for storing or transferring the information.?

?Who are the parties included?

?Your NDA should identify all the stakeholders engaged in the project for whom the agreement would be applicable. This includes you, the app development company that you’re outsourcing to, and also any 3rd parties that may be granted access to the data for various necessary purposes.

?What can happen if the NDA is violated?

?In this important clause, you make it clear what penalties and consequences will be imposed on the app development company if they violate the NDA. An example could be that you receive indemnity for the damages resulting from the violation.?

Conclusion

?Your valuable mobile app idea and all the associated data are your intellectual property. When you’re required to share this information with an outside party, you should take precautionary steps such as signing NDA to ensure that the information stays safe within the signing parties. Regardless of whether you’re a startup or a large business, ensuring security for your ideas and data should be on the top of your checklist.?

?At Insta IT Technologies, we take the greatest care to keep your sensitive information secure and confidential. When you hire our trusted?app development services, you can rest assured knowing that any sensitive information related to your mobile app project will receive top-notch protection.