When enterprises expand their business to external resources, they are outsourcing. Software outsourcing is when you hire software development teams to make custom software and deal with technology-related issues. It’s becoming the trend of the time because of the benefits business owners get to enjoy. Thus, it’s easier for enterprises to stay ahead of the market competition by investing more to save long-term costs. 


This article is not about how software outsourcing works or the insight of software developing companies, but a critical component of the contract-Non Disclosure Agreement. 


NDA is short for a Non-Disclosure Agreement, and it is a type of software agreement between the enterprise and the outsourcing company to maintain data security. In this agreement, the client has a right to give the list of personal factors, and there are zilch compromises when it comes to data security. It depends on the client what they want to hide from the public and whatnot. All decisions are under the NDA norm. 

Some foundational elements of the Non-Disclosure Agreement are

  1. The timeline of the agreement
  2. The penalty in case of breaching the agreement
  3. The clarity in writing the confidential data
  4. The preface of both parties

NDA has different categories to assist their clients. 

  • Unilateral Non-disclosure Agreement: Uni means one way. In this model, the sole owner of the data is the first company, the enterprise. It gives the lists to the developing company, and it has no right to leak or edit them. In this way, the client has control over their data and secrecy. Thus, many businesses prefer this option. 
  • Mutual Non-Disclosure Agreement: as the name suggests, both the teams discuss the inclusive and exclusives and then prepare the list. The final list is fair for both companies. 
  • Terms and Conditions Agreement: Like every other agreement, NDA comes with its terms and conditions. It is crucial to have a crystal clear perspective before imprinting the contract because, with time, things and situations change. You may not want to compromise on the security and quality of your product at any cost. There are a few-must ask-questions:

There are a few-must ask-questions:

  1. What is the timeline of the term?
  2. What are the obligations?
  3. What will be included?
  4. What will be excluded?
  5. How long would NDA last?

In your meeting with the software development company, if you receive satisfying answers to these questions, hurry! You have found the right company.

  • Deemed Confidential: it is the most vital type of NDA because it shines a light on the importance of writing down the facts rather than oral discussion. One cannot remember the list of things all the time. It is always advisable to write things down- especially when it deals with data secrecy. The companies should jot down what needs to be confidential and whatnot to avoid future misunderstandings and feuds.  


The importance of NDA varies from company to company. I don’t think any company would want to leak their data, or any company could be irresponsible enough not to sign the Non-Disclosure Agreement. 

To strive in the competitive market, enterprises keep working on the project, develop new ideas, and produce software better than others. So, to keep your ideas and plot unique from any other, it is crucial to keep them confidential. When dealing with an outsourcing company, secrecy is the first thing to deal with because there are high data leakage chances. 

NDA is not an oral discussion. It requires a legal framework and proper NDA report writing. When expanding your business, you need to share information with your potential partners and interlinked companies. To establish a trustworthy relationship and succeed in partnership, NDA plays the role of glue. 

Moreover, having personal writing and getting it signed by all the parties creates a legal framework. It means that the violation of terms in any way possible leads to theft, and the company has to face repercussions. In NDA, there are penalties, and there are no exceptions for anyone. Some NDAs blind the person to a very long-term NDA, and in this, there are higher chances of data leakage in the future. It is because even the owners cannot keep track for a long time. By the time they have vague memories, the third-party vendor begins to take advantage. Infringement of confidential data may also lead to criminal cases. 

Although the enterprise has the right to its data, not everything comes under NDA. There are some exclusions by the court for legal records. It includes the information with SEC or address of the company’s headquarters, etc. The court has control over NDA, and it can demand data from NDA without consulting the business owner. It is to keep in check the company’s legal and illegal works. And if the recipient company gives data to the court, they are not leaking the data. 

I hope you have recognized the importance of data secrecy. It is critical in all agreements and dealerships. If you have trouble writing the NDA report, our company is at your service. We have expert writers and leaders to help you get a clear perspective. 


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