Today, there are many ways to help many companies thrive and improve their status and performance. One of those things is by implementing software development outsourcing. This essential tool allows you to have a quick backup of experienced resources with fantastic skills and sophisticated competencies that might not be easy to search on-site. you should familiarize yourself with the legal and contractual side of your business. In this article, we have some downloadable contract samples to guide you. Keep on reading!

FREE 8+ Software Development Outsourcing Contract Samples

1. Software Development Outsourcing Contract Template

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2. Software Development Contract Template

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3. Development Contract Template

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4. IT Company Contract Template

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5. Agile Software Development Contract Template

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6. Sample Software Development Outsourcing Agreement

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7. Software Development Outsourcing Contract Overview

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8. Software Development Outsourcing Contract

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9. Development Contract Sample

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What is a Software Development Outsourcing Contract?

An outsourcing contract is a very essential legal and professional document that clearly examines what particular work will be managed by the third-party, what expectations you have, what timelines should be fulfilled, and things of that nature. Simply, it provides fundamental protection on your investment and also imposes how the third-party or a software developer receives payment. 

How to Write a Software Development Outsourcing Contract 

Software development outsourcing contracts should always provide transparency on what kind of payment arrangement you’re dealing with. The contract type you select should be paralleled with the size, scope, and objectives of your project, as well as the outsourcing model you’re planning to apply.

Here are some ways you should know when creating a contract:

1. Identify the number, characteristics, and qualifications of the software developer

Both parties should have an agreement regarding how many individuals are needed to support the client’s team. Include the accurate number of the prospect individuals along their unique characteristics and professional qualifications. For further extensibility of the client’s business, allow a basic procedure for adding new software developers to the team. Include possible changes within the team in your contract.

2. Determine the exact amount of working hours

You should determine the exact amount of working hours dedicated to the works for the client for a week or for a month or for several months. Make an agreement of the rates and rules especially when the software developers are required to work overtime. Indicate as well that every individual should have some days of vacation leave due to holidays.

3. Include suitable responsibilities of both parties

Then, include liabilities or responsibilities appropriate for both the company and the outsourcing company. For instance, the contract should state that when the client has the primary control over the project and key management functions, the one who becomes responsible for procuring the resources agreement is the outsourcing company.

4. Specify the provisions on payment and additional costs

Provide the necessary information as you specify the hourly rates of software developers. You may check the payment for IP transfer.  Include overtime rates and other additional costs, including the fees for particular licences required for the given project. 

 

FAQs

What are examples of outsourcing?

Some examples of outsourcing are business development and sales, customer service, manufacturingmarketing and advertising, and accounts receivable collections.

What are the main types of contracts if you decide to outsource?

The main types of contracts are time-and-materials contracts and fixed-price contracts. The first one bills the project at an agreed-upon rate according to substantial resources used and time accomplished by developers, while the second one bills the project at a flat rate without considering the resources and time completed.

What is the benefit of outsourcing?

It might be cheaper than the price of expanding. Plus, it is  more efficient and less expensive than relocating. Outsourcing can also diminish costs by subtracting the expenses due to recruiting new employees.

What are the 4 elements of a valid contract?

The four main elements of a valid contract are agreement, capacity, consideration, and intention.

To sum it all up, you need to be knowledgeable about the potential issues or problems that may occur especially when creating contract agreements for outsourcing software developers and IT experts. Preparing an effective and structured contract can help your business be protected and have your legal rights while working on the assigned project with ease. So, we bring you some of our printable outsourcing contract templates available in various formats. Please click the samples in this article and start downloading now!

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