Home » Why NDA is Essential in Mobile Application Development Industry

Why NDA is Essential in Mobile Application Development Industry

Let’s take a scenario this way; you hit up with an incredible mobile app development idea that kept you cheered up until you got into touch with a mobile app development agency. This company verbally ensured you that all your information like your idea, data, details, design, and so forth, will be confidential and won’t be disclosed without your permission. Then one day, you get acquainted with the awful news that your fierce competitor has stolen your app idea, and they are now on a journey to make millions and billions ….. HORRIBLE!

What’s NDA in Mobile App Development Industry?

To keep your mobile app development idea secure and safe from third-party interference, a mobile app development agency and client or business sign a written documented contract agreement called NDA (non-disclosure agreement). This guarantees involved parties that even a tiny amount of information that has been shared among them will be highly secured, protected, and confidential until any of them are permitted to disclose it.

NDA doesn’t mean that the agreement will only be a sign between two parties. It can involve multiple parties that involve in the project development process. However, there are types of NDA that we will discuss as you scroll down further.

Is NDA Important?

The one-word answer, of course!

Why? No one wants to have any kind of information disclosed publicly.  Especially when it comes to business or any essential matters. So, what’s the last option that remains? Keep your data secure from unwanted and unknown bodies who can harm your business reputation and take control over you within no time. And the irony would be, Attack you with your own powerful weapon, “The idea.”

Ideas are nothing but a beautiful illusion of how you see your digital products being used excessively until you turn them into reality.

Here’s What You Should Consider When Signing the NDA

  • Hiring Mobile App Development Agency that’ll have Access to Sensitive Information

Finding the best mobile app development agency is essential. But what’s more important is hiring a company for your project that can keep your confidential information secure and safe from leaking and whatsoever. So, you need to sign NDA with that company to guarantee the protection of the data you provided them. This information gives access to all the crucial information like addresses, leads, data, and so forth, having valuable stuff.  

  • Demonstrating an Idea to a Potential Partner/Entrepreneur 
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It is crucial to see your potential partner with your third eye. Unfortunately, what happens sometimes is that the people you share your superb idea with tend to stab you in the back. They steal that idea from you, and with minor changes in it, they call it their own. To avoid this mishap, be careful what information you share with them, especially when you are supposed to reveal any confidential information to the other party. This information could be about your business finances, customers’ information, your personal information, etc.

  • When you Outsource Your IT Project

The non-disclosure agreement is essential for a business to collaborate hassle-freely and with trust among both parties effectively. You need to ensure that the bond between your hired mobile app development agency remains strong when you outsource the business process. NDA promises that the information you share offshore will remain between the two of you. This way, you can be guaranteed to make an incredible mobile application that rocks the market when you get to launch. Moreover, NDA provides legal assistance to you.  If your information gets leaked, you can take legal action against the hired service provider.

Types of NDA

Unilateral Agreement

This agreement involves two parties, and only one party discloses sensitive information. For example, it may be you or a business, whereas the other party guarantees the security of your secrets, and sensitive data will remain confidential by signing an agreement. The other may be your offshore hired developers or mobile app development agency. It is also called One-way NDA

Bilateral Agreement 

In this type of non-disclosure agreement, both parties are obligated to secure each other’s sensitive information from dissemination. It involves a service seeker party protecting the party’s confidential information and serving as a service provider. This type of agreement is also called Mutual NDA or two-way NDA.

Multilateral Agreement

A multilateral non-disclosure agreement includes more than two parties that sign a contract. All the involved parties are obligated to secure the sensitive information that has been disclosed its information to them. It might include multiple businesses collaborating with your business when considering some kind of joint venture.

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The Immediate Purpose of NDA

The significant purpose of the NDA is to eliminate all potential arguments that may occur in the future. NDA allows both parties to sign a contract on a mutual agreement. The non-disclosure agreement makes both parties responsible for being trustworthy and honest with each other. Because mobile app development involves risks throughout the development process as the development services are exposed to the dangers of data breaches and sensitive information leakage or unwanted bodies getting access to your information.

You must be thinking that we have already discussed types and when to sign NDA, but you may be confused about the critical elements of an NDA. So here it is;

  • Confidentiality of source code.
  • Business idea security.
  • Security against copyright encroachment.
  • Protection of restricted information listed in NDA.
  • Security of the information or an idea provided by a client.

If you’re on the hunt for a SharePoint development company and want a full-fledged expert development service, get in touch with them. Know how they progress with the development process and, most importantly, make an inquiry about them. Look for their past development record and public profile. See what people say about them and then move forward.

In the world of advancement where technology has come forward to assist in many possible thousand ways, malicious cyber-enabled activities have also gained momentum. These activities could harm you to the extent that they can result in great destruction to your business reputation.

Potential Risks of not Considering NDA

Here’s what you could face if you don’t sign a non-disclosure agreement.

You can lose right over your property.

If you don’t consider signing up for NDA, all your classified data can get uncovered without your permission, and you could lose an opportunity to patent your development idea. Moreover, you could lose the chance to take the information into your own authority. More horribly, you can lose the rights over the property on which you spent money and time. But, of course, you simply dislike the fact that your competitor used your excellent mobile app development idea and enjoyed making revenue, will you?

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Ineffectiveness in exchanging sensitive information

Not signing a non-disclosure agreement could also result in ineffectiveness in sharing information among both parties. This exchange of information will result in nothing but an unfruitful discussion that will lead to no practical results. You must know that client and mobile app development agency communication is the key to the best up-to-the-mark app development you asked the client. Suppose you fail to communicate correctly with your service provider and keep all the crucial information unshared. Do you think that the digital product will be the same as you envisioned?

Risk of litigation

If your confidential information gets disclosed to any unauthorized body or hacktivists, you could suffer from litigation and material expenses to recover your data from the intense loss. Furthermore, this would bring you and your business in the spotlight, along with affecting your customer base. Do you want to become a sensation on the internet this way or want to choose a safe way to gain popularity through NDA?

Lack of Trust among both Parties

When you tell someone your secrets about your personal life, marriage, and work, particularly business, you require a key. The key is called TRUST. Trust is something that needs to be mutual among both parties when you head to acquire development services from mobile app development services. Lack of trust can result in the insufficient exchange of information that will AGAIN lead to NOT up-to-the-mark development and sometimes may result in conflicts.

Unable to take action against other parties

You can’t even take action against the fraudster without having solid proof. NDA also serves as proof in complex situations. Play safe from your side to keep your business safe from unwanted situations that become a headache.


Having a guarantee in a written and signed form is something that assures you that your sensitive information is in safe hands—saying that you can rely on the other party without any fear of theft. If you proceed further without such a non-disclosure agreement, your data can be disclosed to anyone having evil intentions to harm you and your business in any possible way. Let us know what your thoughts about NDA are.