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Are you thinking about outsourcing, but are concerned how effective or cost efficient it will be?? That’s understandable. Many managers and business owners struggle to decide whether outsourcing is the right choice for their company or not.
Fortunately, there are other companies that have already made their decision to outsource, and they can share their experiences with you.

This article takes a look at one company that saved over $50,000 by outsourcing part of their activities and talks about how you can get started on the same path towards greater savings and improved efficiency.

Who’s who in a software escrow agreement?

We use the following terms interchangeably throughout this article:

The licensor is typically a software developer or vendor who deposits source code and other materials into escrow. They're also referred to as the depositor. The client, or the authorized end-user, is typically  referred to as the beneficiary or licensee. A neutral third party, such as Codekeeper, typically serves as the escrow agent, providing secure storage of the source code and other materials, and making available (releasing) the contents of an escrow account to its beneficiary (or, beneficiaries) — upon a release condition being met.

During renegotiation of their licensing agreement, the client might request that the system in question be deposited into escrow. Should any adverse, unforeseen event take place, the client will be able to retrieve the valuable code and IP, and resume operations as usual.

These smaller development teams can also use software escrow as a selling point for their services, reassuring potential clients that if anything happens to the firm, the IP is secure in storage, up to date, and ready to be released once a trigger event takes place. 

If you’re thinking about outsourcing your development, you must surely be wondering about how to keep your data secured.
Data breaches are a real danger that can lead to fines and a damaged reputation. It's very important to understand how your data is being handled by everyone you work with, especially when working with agencies in different countries where the laws may differ.

This article gives you six tips on securing your development outsourcing. These tips include protecting your intellectual property (IP), asking about security certifications, limiting privileges, forming an airtight agreement, and preventing breaches.

You can then discuss intellectual property policies with your selected agency. You will want to make sure they understand the laws and that they follow the rules.
Ask about their security measures around intellectual property protection. For example, do their employees sign non-disclosure agreements (NDA)? The agency should be able to provide these details in-depth. If not, take it as a red flag. You can also discuss discrepancies and have your lawyer add this to your contract.

The agency should be able to provide these details in-depth. If not, take it as a red flag. You can also discuss discrepancies and have your lawyer add this to your contract.