Digital agency · Outsourcing

Precautions for Software development agency

Altaf Sayyed Diversity-focused, forward-thinking experienced IT executive with a humanist, global perspective

March 21st, 2019

Hello members!

I need suggestions for below cases.

In software development agency most of the time work is outsourced to other development companies or freelancers. During project execution there is direct communication between client and developers.

1. There is always possibility that for future projects client will directly contact developers avoiding Agency. What precautions software development agency should take to avoid this business loss?

2. In Service Level Agreement with client for software development project is it advisable to mention development company name? If yes what related clauses should be mentioned there.

3. What things in software development project Agency should handle itself other than software coding?

4. What value addition Agency can provide to its clients?


Anton Yakushin Cofounder & CTO of Software development company

March 21st, 2019

1. Do not connect your developers with the client until some point when you fill confident that developers are professional enough to complete the work. You can set a trial period of 2 weeks or a month. They should sign NDA at the beginning of work. All payments should pass through your agency. Keep communication via your skype/slack. This all will make it harder for developers to contact clients directly.

2. Not advisable. You can change development company along the way, if they don't do well. The client should not be bothered by this.

3. Payment, up-selling new services/developers, signing documents.


- Scalability, an agency can quickly boost the development by quickly connecting more developers.

- Reliability, in case one development company fails, a client will not have to look around for another one, the agency will handle this.

- Legal issues. Big companies may not have ability to sign a contract with individual developers or off-shore companies, while agency can.

Colette Wyatt Entrepreneur, CTO, Co-founder

March 21st, 2019

Hi Altaf,

A few suggestions:-

1. Have a non-solicitation clause with your offshore providers and a penalty if they work directly with your client or an agreement that they will pay you a commission if the client goes directly.

2. Have a clause with your client contract, that they cannot use those resources unless they pay you a finders fee.

3. Use a decent offshore company who won't steal your clients.

If all else fails, contact me and I will put you in touch with someone who will work with you "as a true partner".

One final piece of advice - if you cannot articulate how you add value to your clients - you have a bigger problem than the client cutting you out....

Razvan Stoica Bard

March 21st, 2019

1. since you're mostly selling project/product management anyway, it doesn't matter. Client isn't suddenly going to acquire the skills to translate requirements, set schedules, manage developers, do QA etc. And if he does, he's out of your market anyway.

2. what sort of a question is this?

3. see 1

4. see 1