Why is NDA for Mobile App Development Outsourcing Important?


The process of mobile app development is inherently a complex one. Outsourcing mobile app development requires an NDA for hassle-free execution of app development. Carefully drafted NDA ensures that your app idea remains confidential before your app concept takes shape and becomes a reality. Also, NDA prevents any conflicts that may arise between you and the mobile app developer.

What is NDA for Mobile App Development Outsourcing?

You require a team of mobile app developers to transform your app idea into a full-fledged mobile application. You invariably approach mobile app development companies to outsource your app development process. It is not uncommon that one may feel anxious about the safety of sharing the app idea with the app development company that you hire.

For anyone looking to outsource mobile app development services, sharing ideas and other crucial information with the app developer is a matter of concern. Proper NDA between you and your mobile app developer(s) is warranted to ensure the secrecy of your app idea and other associated concepts and crucial information.

What is included in NDA?

NDA (Non-Disclosure Agreement) is an agreement that ensures that the concerned parties will not reveal the data to any other third party under any circumstance. NDA ensures the confidentiality of information is maintained at any cost.

Generally, an app idea is not concrete, for it usually begins in the imagination. Initially, no plans or designs exist for any app idea, and it exists in the form of a short text – not exceeding a few sentences. Even then, NDA is needed to prevent the involved parties from disclosing this crucial information to others.

NDA makes sure that mobile app development companies provide reliable app development services to all their clients without violating approved NDA terms. This ethical practice results in a good reputation for the app development company and better bonding with the customers.

What does NDA do?

A well-crafted NDA serves the following purposes.

  • Ensures that there is no confidential data leakage
  • Prevents disclosure of shared crucial information
  • Facilitates legal prosecution against NDA violations

What is confidential information?

NDA covers confidential information such as:

  • Unique product ideas
  • Customer database
  • Supplier database
  • Business strategies
  • Software tools and technology deployed
  • Employee data

When should you sign an NDA?

Well-drafted NDA takes care of mutual understanding between the client and the mobile app development company hired by the client. The NDA mustn’t have any unfair terms and conditions in it.

Signing NDA becomes critical under the following circumstances:

  • To prevent research results from getting publicized before their reliability is proved.
  • When approaching the financial investors for your business proposals.
  • Development of innovative products like mobile apps
  • To keep temporarily safe the details about projects dealing with client data

1. When handling business deals

When you outsource your mobile app development services to a freelance app developer or a mobile app development agency, you invariably sign an NDA with them when you want to protect your app idea/concept from becoming public. NDA ensures that the app developers that you hire will not disclose your app information to your competitors.

When dealing with investors

Commonly, the investors decline to enter an NDA at the initial discussion stage. NDA comes into the picture when inside details like specific technology or revenue numbers become critical.

Important elements of NDA

An effective NDA needs to have a set of important items that include:

  • Clear definition of confidential information
  • Clear definition of non-confidential information
  • Who are all the parties involved in the NDA
  • The validity period for the NDA (how long the NDA is valid)
  • Terms and conditions for allowed information transfer
  • Definition of what constitutes disclosure of information
  • Situations when information disclosure is permitted
  • Conditions for returning the information
  • Details about possible sanctions (payment terms for damages and fines in case of NDA violation)

Final thoughts

NDA ensures that your app idea remains safe and secure even during its development stage. It prevents conflicts from arising between the client and the app developers. If conflicts arise, NDA facilitates resolving them amicably.