Read full article at: http://hubpages.com/hub/Looking-to-Outsource

No. 1: THINK LONG TERM

•    Look for a firm focused on a relationship and longevity.
•    Make sure that both you and your potential vendor are looking for a long relationship.
•    When looking to outsource, a vendor that is focused on building a relationship and becoming a valuable partner is critical.

No. 2: COMMUNICATION IS KEY

•    The most important thing in an offshore relationship is to dedicate people at both ends to keep track of project progress.
•    The biggest risk to offshore projects is the gap that often develops due to poor communication between the client and offshore team over changing requirements. The best way to prevent this gap is to have an agile methodology in place.

No. 3:  HIGH VALUE NOT LOW COST

•    If you’re looking to outsource, don’t look for the cheapest provider.
•    In addition to technical skill, you should evaluate their responsiveness, the types of questions they ask, and their ability to manage complex projects.
•    Start with an attitude of caution until the vendors prove themselves by meeting incremental milestones.

No. 4: KNOW WHAT YOU WANT

•    There are two kinds of offshore outsourcing shops. The first are low cost ” sweatshops” who take your specs and run the project. This is fine if you have solid specs and are looking for a team to simply execute. The second kind are companies that have experience with highly complex projects in specific industries. They’ll have the expertise to add value to your project by asking “what if” questions and challenge your assumptions. They will act as a partner and a peer rather than a vendor. These companies are few and far between. The way to find them is to ask what role they’ve played in the projects they’ve worked on.

No. 5:  A SIGN OF MATURITY IS THE ABILITY TO SAY ‘NO’

•    You need to be looking to outsource with a partner that can be honest with you from day one, even if it means they might lose your business.

No. 6: ASK HOW THEY HIRE AND RETAIN

•    Employee attrition is a big problem, so make sure you don’t get bitten. Experienced developers are constantly looking for the next best offer. Rather than asking about the company, ask about their criteria for hiring people. This will indirectly tell you about the character of the company.

SUMMARY

Outsourcing is unavoidable, so finding a firm that can set proper expectations is the only real guarantee of success. An agile development methodology, reasonable expectations, transparency and communication are critical.