How to Ensure Your IP is Safeguarded While Offshoring

Venkat Bharadwaj Chennuri

Offshoring has become a popular strategy for many companies looking to expand and increase their competitiveness.  However, when outsourcing work to an offshore development center (ODC), the protection of Intellectual Property (IP) becomes a top concern. In this blog post, we'll delve deeper into what, why safeguarding it is important, the risks associated with, and how Intellogi’s Build-Operate-Transfer (BOT) 2.0 model can help ensure your IP is secure.

What is Intellectual Property (IP)?

Intellectual Property (IP) refers to the creations of the mind, such as inventions, literary and artistic works, symbols,  names,  images,  and  designs  used  in  commerce.  IP  can  take  the  form  of  patents,  trademarks, copyrights,  or  trade  secrets. Essentially,  IP  represents  the  unique  and  valuable  assets  that  a  company possesses.

Software Development IP

In the context of software development, IP can refer to the source code, software architecture, and design of a software application. Companies allocate a substantial amount of time and resources to develop their software IP, highlighting the importance of taking measures to protect it. IP is an intangible asset that is often undervalued, but  it  is critical for companies as it can provide  them with a competitive  advantage and generate revenue through licensing, sale, or commercialization. Protecting this asset is crucial, given the considerable effort and investment that companies put into developing their IP.

Why safeguarding IP is important

The protection of IP is critical for companies as it ensures that their unique creations and ideas are not used  or  misused  by  others.  The  unauthorized  use  of  IP  can  result  in  lost  opportunities,  reduced competitiveness, and decreased revenue. In some cases, it can even lead to legal action. For example, if a competitor were to use your company's patented technology without your permission, this could result in lost sales and damage to your reputation. The unauthorized use of a trademark can also  result  in  consumer  confusion,  dilution  of  the  trademark's  value,  and  damage  to  the  trademark owner's reputation.

Safeguarding  IP  is  therefore  crucial  for  companies,  especially  when  outsourcing  work  to  an  offshore development center. The transfer of sensitive information and technology to an ODC can increase the risk of IP theft or misuse. Companies need to ensure that their IP is protected and that the ODC is not using it for unauthorized purposes.

Traditional Offshoring and the risk of data privacy & Whitelabelling

Traditional offshoring methods can pose a significant risk to companies' IP and data privacy. The lack of control over the ODC can result in IP being shared with unauthorized parties or used for purposes other than those intended. Whitelabelling, where an ODC acts as a front for another company, can also put IP at risk as it may be difficult to determine who has access to sensitive information. For example, if an ODC is whitelabelling for multiple companies, there is a risk that sensitive information may  be  shared  between  clients.  This  could  result  in  IP  being  used  for  unauthorized  purposes  or  being shared with unauthorized parties.

In addition, traditional offshoring methods can also result in a lack of accountability and visibility into the ODC's operations. This can make it difficult for companies to monitor the use of their IP and ensure that it  is  being  used  in  accordance  with  their  wishes.  The  transfer  of  sensitive  information  to  an  offshore location can also increase the risk of data privacy breaches.

Offshoring with Intellogi BOT 2.0: Ensuring IP security

The Intellogi BOT 2.0 model ensures that the client company has complete control over the core product development, with all workflows and outputs managed and owned by the client from the beginning. Our role  is  to  provide  the  necessary  resources,  support,  and  talent  to  the  offshore  development  center, including  managing  payroll,  team,  IT  assets,  and  operations.  However,  we  do  not  interfere  with  or influence  the  core  product  development  process, which  means  that  our  clients  have  full  ownership  of their intellectual property from day one. This approach ensures complete transparency and protection of the client's valuable intellectual property. Our transfer process is designed to be a smooth handover of payroll, team, IT assets, and operations, without any disruption to the client's core product development process.

The Intellogi BOT 2.0 model  provides several benefits for companies looking to outsource work to an ODC:

"The Intellogi BOT 2.0 model enables clients to take full control of the offshore development center (ODC) from  the  outset,  ensuring  the  safeguarding  of  their  intellectual  property  while  reaping  the  benefits  of offshoring.

Complete Control: Clients are given complete control over the ODC, its operations, and the core product development process. This ensures that the intellectual property of clients is always protected and used according to their wishes. As the service provider ,Intellogi offers the necessary resources and support to ensure the smooth functioning of the ODC.

Increased  Visibility: Clients  have  increased  visibility  into  the  operations  of  the  ODC,  allowing  them  to monitor  progress  and  ensure  that  their  intellectual  property  is  used  according  to  their  wishes.  This increased visibility frees clients to focus on planning work and deliverables for their team.

Reduced  Risk: The Intellogi BOT  2.0  model  minimizes  the  risks  associated  with  traditional  offshoring methods by empowering clients to take control of the ODC from the beginning. This approach reduces the  risk  of  intellectual  property  theft  or  misuse,  ensuring  that  clients'  valuable  intellectual  property  is always safeguarded.

Increased Accountability: Intellogi provides the necessary resources and support for the ODC, including managing day-to-day operations, ensuring its smooth functioning. The client retains full accountability for the  use  of  their  intellectual  property  and  has  complete  control  over  the  core  product  development process."

In  summary,  protecting  intellectual  property  (IP)  is  crucial  for  companies  that  are  considering outsourcing work to an offshore development center. Traditional offshoring methods can pose significant risks to IP and data privacy, which is why Intellogi's Build-Operate-Transfer (BOT) 2.0 model is an ideal solution for companies that want to ensure IP security and peace of mind.

At Intellogi, we are committed to helping companies grow and succeed by providing innovative and high-quality services that push the boundaries of technology. Our team of experienced and highly skilled professionals is dedicated to delivering unparalleled results with quick turnarounds, so our clients can achieve their goals efficiently and effectively.

Contact Intellogi today to learn more about how we can help you grow and succeed.