Protecting intellectual property (IP) in offshore custom software development involves legal agreements, secure communication channels, and strict access controls. Companies should ensure that non-disclosure agreements (NDAs) and intellectual property clauses are included in contracts with offshore vendors. It's also crucial to work with vendors who have a strong track record of IP protection. Implementing secure development environments and limiting access to sensitive data further reduces the risk of IP theft. Regular audits and monitoring of offshore activities can ensure compliance with security protocols and safeguard proprietary information.