An outsourced and custom development agreement refers to a legal document signed between two companies where one company outsources or gives the contract of developing a software or application to another. It lays down the various terms and conditions related to the development of the custom software, payment and other details related to the contract like ownership and copyright of the code. Although the author of the code is regarded to be the owner of the custom software, the terms of the agreement can change this by giving a high compensation and according to the new terms, the copyright can be transferred or the duration of holding the copyright can be adjusted.
The outsourced and custom development agreement also mentions confidentiality clauses in order to place restrictions on the sharing of information regarding the custom development of the software. The agreement has various other provisions related to dispute resolution regarding transfer of rights from the developer to the client.
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