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IT Outsourcing Agreements

Who owns the code before payment?

Usually the vendor. Rights transfer upon full payment unless stated otherwise in the contract.

What is an MSA?

MSA (Master Services Agreement) is a framework contract governing general terms for multiple orders.

How to protect an idea?

Ideas aren't copyrightable. The best protection is an NDA (Non-Disclosure Agreement).

Can we sign an Agile contract?

Yes, such contracts focus on the process and hourly rates (Time & Material) rather than fixed deliverables.

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IT Outsourcing Agreements regulate the transfer of IT functions (software development, support, infrastructure management) to external providers. Georgia is a popular destination for IT outsourcing, increasing demand for qualified legal support. An outsourcing contract is a complex document that must balance flexibility (Agile processes) with control (deliverables). Major risks involve intellectual property rights transfer, confidentiality, and missed deadlines.

Legal.ge offers IT contract experts who will help you sign robust agreements with developers, QA specialists, and IT companies to avoid disputes over code ownership and project failure.

What does the IT Outsourcing Service cover?

The service covers all stages of the relationship:

  • Master Services Agreement (MSA): Drafting a framework agreement regulating general terms.
  • Statement of Work (SOW): Technical-legal description of specific tasks, timelines, and Acceptance Criteria.
  • IP Rights Transfer: Clear formulation of intellectual property (code, design) transfer ("Work for Hire" principle).
  • Non-Disclosure Agreement (NDA): Protecting trade secrets.
  • Non-Compete / Non-Solicit: Restrictions on poaching client employees or working with competitors.

Common Real-World Scenarios

Problems in outsourcing:

  • Code Ownership: A developer wrote code, but the contract lacked an IP transfer clause. The developer forbids using the code even after payment.
  • Missed Deadlines: The project dragged on for months. The contract has no penalties.
  • Quality: The software is buggy. The vendor claims it's a "feature," not a defect.

Legal Framework: Copyright

Under Georgian law, authorship belongs to the creator. For economic rights to transfer to the client, a written agreement explicitly stating the transfer is required. Otherwise, the client may only have a license, not full ownership.

Step-by-Step Service Process

  1. Negotiation: Agreeing on terms.
  2. Drafting: Preparing MSA and SOW.
  3. Signing: Electronic or physical execution.
  4. Management: Handling Change Requests.

Why choose a specialist on Legal.ge?

IT projects are expensive. A legal mistake can mean losing the product. Lawyers on Legal.ge speak "tech" and ensure your investment is protected.

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