« Hooked By The H1-B / L1 Visas IT Industry "Prestigious Ones" Turn To Offshore "Tax Evasion" | Main | Strategy For An American IT Consultant In An Offshore World »

Offshoring Software and Confidentiality Rights Is A Bad Idea For The IT Industry

In the past the IT Industry and specially Peningo Systems Inc. have been very careful to secure the Client’s rights in works developed for the Client by the Consultants working in the development of  computer based systems as well as securing confidentiality agreements over such works. 

The larger IT corporations in America (which we refer them as  the “Prestigious Ones” ) in their efforts to engage in “Tax Evasion” by outsourcing offshore the development work  of software (The offshore developers are not subject to USA taxes and the US corporation avoid paying matching Social Security, Medicare and Unemployment Insurance),  fail to secure the Software Rights and Confidentiality, agreements that would be protected if celebrated under USA laws.

The offshore developers are not bound by USA laws, therefore, there might be some surprises to those using American Firms that have engaged offshore resources and the foreign developer may want one day to claim royalties over the software that you the “end client” have paid in full.   As customary in our USA based industry such works are contracted as belonging to the “end client”. Under the offshore circumstances it will no longer be so.

In addition, and for the same reasons stated for the Software Rights, confidentiality of the “end client” information, including that of its Customers may be compromised, as the foreign elements offshore will be free to sale such information to other organizations in the USA or world wide.

Peningo’s solution to this problem is to bypass these “Prestigious Ones”, and with the support of Peningo Systems Inc., contract directly between the consultant (a USA person) and the “end client”, thus, eliminating these “Prestigious Ones” who are failing to secure the “end client’s” Software Rights and Confidentiality and will leave the “end client” and their customers exposed to the abuses of foreign nationals who are beyond the reach of USA law.