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Software Development January 4, 2021

What you must know about the NDA Policy for App development

Written by Vishal Shah


Outsourcing Mobile App Development, Web Development, and other IT operations have become a norm for many companies. As India is a large market to outsource IT operations, developing software applications from India fits the best to any company’s budget. India is a preferred destination to outsource IT operations and to hire mobile app developers or to hire a mobile app development company for any foreign companies. The main reason why people hire developers from India is that India has quite quality coders and always comes up with creativity to develop new apps. Moreover, the cost of living in India is lower than in the USA, Australia, and other such countries, so developers from India work at quite lower rates, and that’s why India is a preferred destination to outsource App Development and Web Development.

Many companies have hired developers from India and are noticing quite good and satisfactory results. Some companies are worried about their data and privacy; they are concerned about their confidential and sensitive data. Handing over their data to an offshore company sometimes seems risky, but it is not. A contract call Non-Disclosure Agreement, aka NDAed, binds your development partner or web development company not to use or disclose their client’s data anywhere.

So, NDA for App Development is quite necessary because you want your data safe and don’t want it to get revealed anywhere. So, those App Development companies sign an NDA policy with you, which makes them legally bound to your terms and conditions, and they cannot use or leak your data anywhere in any form. Let’s check what an NDA is in detail.

What is an NDA?

NDA simply stands for Non-Disclosure Agreement, and an NDA is a mutual contract between two parties that promises the protection of one party’s highly confidential and sensitive data. Another party has to protect their client’s data and information while working on their project. Its data shouldn’t be misused in the future as well. If one party fails to protect the confidentiality of their client’s data, then the client can take legal actions against that party. 

So, an NDA is a must if you are outsourcing your app development project or web development project to a foreign country. You do not know the company or their developers and might not be aware of how many people and who works on your project, and at that time, the confidentiality of your data becomes questionable. In such a scenario, we have a Non-Disclosure Agreement policy, aka NDA.

Why you need an NDA?

Sometimes, you don’t want your app data or information to be leaked anywhere and protect that data; we need an NDA. Sometimes, an investor comes up with a great app development idea, and they need to share that app development idea with the mobile app development company, so that idea cannot be used by that development company for their own purpose and remains the property of the investor itself. 

So, if your app development idea is unique, and it can change the lives of people around the globe, but you don’t know how to develop such an app, then you will go to an app development company and share that life-changing app development idea with that development company, at that time, you will need an NDA. So, the development company cannot use that idea to build their own app.

There are many reasons why one should sign an NDA. Let’s discuss some scenarios where signing an NDA is a must.

When to sign an NDA

While Talking with a Development Agency


You can request an NDA policy before talking about your app development idea to your mobile app development agency. This will legally bind that agency not to disclose your app development idea anywhere and keep it confidential. Requesting an NDA is highly recommended because sometimes some shady agencies use their client’s idea and create an app based on it.

Before Finalizing your Development deal

You can also sign an NDA before you finalize your web development or app development project and request your app development agency to keep all of your data confidential and sometimes, some agencies also request not to reveal their own name in their client list because some companies don’t want people to know that they hire their parties to create an app. In such a scenario, an NDA is quite useful.  

So, these were some scenarios when you have to sign an NDA, but let’s see what important aspects an NDA should cover.


Important Aspects an NDA should cover

Timeframe of your NDA

You have to define a specific time duration for your Non-Disclosure Agreement, which tells till when your NDA is valid. It could be for some days, some months, or some years. The recipient of the information and data has to protect the confidentiality of that information and data till the signed date. Both parties mutually sign the agreement, and it is up to both parties whether to renew the NDA or not after the promised date is passed.

Information to be covered under the NDA


You will also have to define what information and its protection should cover under the NDA. If you are talking with an app development company, and your app development idea is unique, then you should opt for an NDA policy and then share that idea with that app development company. If you are assigning them your app development work, you must include in the NDA that your data will remain confidential. So, this kind of things you have to include in the NDA to make sure your idea and data remains in safe hands. 

Return of the Information


You also have to define the return of the information or the destruction of the information by the end of the contract. The recipient company is bound to return or destroy the data about the project by the end of the contract. 

Consequences of Breaching an NDA


You also have to include the consequences of breaching an NDA. What actions you can take against that app development company if they breach your NDA policy. You can either take monetary advantage from them or take legal actions against that app development company for breaching the NDA. In some cases, you can take both types of actions. So, you must define what consequences you can take against the company if they breach the NDA.

So, this information must be defined in your Non-Disclosure Agreement, and the recipient of the information must destroy every bit of information they received, and if not unable to destroy it, they should prevent the information or data from sharing it with other people. So, this is how you should proceed with a Non-Disclosure Agreement before handing over your precious information to any web development company out there. 


By opting for a Non-Disclosure Agreement, you don’t have to worry about your app development idea or any of its data. You can talk freely about your app development idea to any app development company without worrying about your app idea getting leaked because an NDA will legally bind that agency not to disclose that idea anywhere.

So, if you want your app development idea to remain intact, then always request an NDA before talking about any web development or app development agency. If you are looking for any app development company that respects the privacy of your idea and data, then you can contact us or drop an email at sales@inexture.com, and one of our representatives will connect with you soon to discuss your app development idea.

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