How does NDA work in application development? + NDA template
The current information world is full of not only opportunities, but also limitations. If you work in B2B and B2G, you have often encountered NDA from the customer. I will tell you about my experience in the field of outsourcing development: how to profitably use this document.
What is an NDA?
NDA (non-disclosure agreement) or SOD (non-disclosure agreement) is a document signed between the parties in order to limit the dissemination of information to third parties. Even simpler – one party has confidential information that it does not want to share with anyone unnecessarily.
Confidential information can mean anything.
Eg:
Availability of an agreement or NDA
Personal Information
Corporate documents
Design and components of the software product
Fact of work
How does it work in development?
Usually, the customer wants everything that he said, conveyed or showed to remain only between you. An NDA is created specifically for this purpose, attached to one or more contracts and additional information. agreements Both parties agree to exchange information via the specified accounts/chat in instant messengers, emails, personal meetings and/or support it with a document confirming the transfer of confidential information.
In reality, the process is much simpler, since the customer did not intend to disclose anything, and the contractor does not want to face a fine and lose his reputation. Only important documents, databases and accesses are transferred from the add-on. agreement to the NDA, all other communication occurs as usual, sometimes with the proviso that interviews and conversations are confidential.
What is the benefit for both sides?
In short, the customer is protected, strengthens the relationship with the contractor and gains leverage.
How and why he wants to protect himself is already known. Does another agreement with strict conditions and, usually, wild fines strengthen the relationship? The answer is Yes!
And there are several reasons for this:
NDA as an agreement of intent
Often in development, deal negotiations drag on for weeks or months. To be honest, I have never encountered an agreement of intent in its original form, but I have signed an NDA more than once, which implied the same meaning. Conclude an NDA without a contract faster so as not to miss out on favorable conditions, a good team or assigned deadlines.
Confidence
Both counterparties begin to trust each other more, which contributes to a comfortable atmosphere during interviews and negotiations, speeds up the resolution of minor bureaucratic (and other) issues, and also performs work honestly and conscientiously.
Minimizing risks
In b2b, especially in the service sector, it is not uncommon for a contractor to stop doing work or finish it poorly. A non-disclosure agreement helps to have additional leverage to avoid these risks and “show who the customer is.”
Conclusion + template
In conclusion, it is worth noting the exclusively practical knowledge on my part in this matter. Share your comments and theoretical knowledge on this issue – it will be interesting to read.
As promised, the NDA template is in the pinned message in tg channel. By the way, there I write informative articles about the world of IT for entrepreneurs.
