No, there’s no misspelling in the tile – in case you think it should have been “Software development outsourcing contracts”.

Now that you’ve decided to outsource certain software development for your company, it is time to make a contract with the outsourcing partner. How to proceed? As you do not have any earlier contract as such, do you ask the outsourcing partner to send you a template? Are you confident that you are aware of the points that are needed to be taken into consideration in a software development outsourcing contract? Do you rely on the outsourcing partner and believe that they will tell you all the tricks or hidden pitfalls in the contact?

As software development itself, the contracting part is also the core business of software development companies as they are doing such contacts regularly with different companies. More often than none, and in case a legal department specifically experienced in this matter does not exist within their organization, the companies that are willing to outsource software development activities do not have necessary know-how to negotiate a contract. This leads to signature of software development outsourcing contacts under which the employing parties be vulnerable to risks in case things do not go as planned.

As odd as it may sound, ‘outsourcing’ the contracting of software development outsourcing services may be a very wise approach in such cases. This ‘outsourcing’ would be in a form of receiving consultancy services from a third party that has technical and legal experience with the software development contracts and that can negotiate suitable terms on behalf of the employer with the software development outsourcing company. This process would start on the right foot, with both of the negotiating parties knowing that both of the parties know what they are dealing with; and result with a fair contract, that protects the rights of the employer and outsourcing company.

As a part of our consultancy services, we, as SWExperts, provide software development contracting support services. If you are at the stage of signing a software development outsourcing contract, or need support with an existing contact, please feel free to contact us now.