Ask HN: How vulnerable am I if I outsource my development to non USA developers?
I would like to outsource my product development to an IT firm or developers/hackers. There is a big chance/possibility that these firm/developers are outside USA based because of the potential cost as I am investing my own capital (I am looking for local developers or within USA as well).
Now the question is how vulnerable am I if I outsource my development completely. Vulnerable means if my source code is stolen or the firm/developers instead develop their own product based on my idea. Of course I would have them sign an NDA and non compete document and all that, and most of the time I would think I am protected if the firm/developers are USA based, but how about if it's non USA based (most probably India, Russia, or some eastern europe based).
Am I completely screwed if these things happen (even if the developers/firms have signed all NDAs, non compete, and so forth)? Would I be able to file a lawsuit on the developers country and maybe USA? Do NDAs and non compete agreement they sign are even applicable in their residence country? What options do I have if these happen to me?
Thank you for the advise.
13 comments
[ 5.3 ms ] story [ 55.1 ms ] threadIf its a big concern, and your project allows it, split the project up into separate modules, each worked on by a separate team - at least that way no single team would have full access to your codebase. The code quality could potentially suffer though, as there would be little consistency in style (unless you establish guidelines and enforce them)
I thought about the project splitting, and the concern I have is exactly the same as your concern in term of code quality. When it's time to merge them together, it would be a pain if one code section is superior than the other and I would end up clean up the inferior one. And my other concern is that who would merge them together as I am not a developer. I could possibly hire a USA based developer to merge them together after splitting them, that's one possibility. But if that developer ends up cleaning up the inferior one, it would cost more at the end.
Want good news? Your idea is worthless, so it is no biggie if it gets stolen. The source code produced is likely to be overvalued at "worthless", so if one of your competitors gets a hold of it, you'll quickly be ahead of the game as long as you don't do anything excessively stupid like attempting to use that source code yourself. (You may succeed in getting code with actual value if you're really good at both picking your provider and managing the outsourcing project, which is ahem not a cheap, easy, do-in-your-spare-time endeavor.) No company worth building is at risk of getting knocked off by a cheap outsourcing company -- if all it took was enough monkeys banging on typewriters to make a software company, they'd already be doing it.
My bona fides: managed outsourcing operations for a few teams of a Japanese multinational for a few years.
If it is a simple idea, and is making money, it will be copied. There's a notion in business called "barriers to entry", and it sounds like you are entering a niche where there are none. You should get comfortable with this notion; it's not the outsourced developer you have to fear.
To kitcar: From what I've saw on the Internet, Eastern Europe has very good developers/hackers if not the best. Probably, I'm just biased here.
If this is a key point of worry, get the ball rolling for your registered trademark for the exact name that you will appear in the app stores, and confirm that name isn't already taken in the stores, and ideally you can get that name .com/twitterID/facebookID to own your brand.
You can use registered trademark to deny others the app listing by way of your registered trademark status, its straightforward for Apple/Google/Microsoft/et. al. to make a call on app store removal based on trademark infringement.
Regarding development, I've done the same with a startup as you are thinking of with a similar product background, it can be done but the challenges are maybe not what you expect - code theft is not a top concern if you screen correctly. Send me an email, or we can grab a coffee sometime, I'm also in Silicon Valley.
As an entrepreneur, I'm not sure you can do anything about folks trying to compete with you (similar name, similar function), you just have to have a differentiated advantage where folks prefer you to knock-offs. But most folks won't try to copy your name until you are popular and there is a reason to clone you, and attempt to glean off your popularity.
At the small level it's fine, but when building larger apps there are just too many barriers to make it efficient.
Including developer programming and communication skills.
It's called hiring in the USA.