From my experience, a huge problem that companies face when outsourcing their technology needs to an offshore provider occurs during the initial selection process.  For a variety of reasons, decision makers fail to apply the same level of scrutiny and process that they would if they were hiring a team of local contractors or permanent employees.   This can be due to the physical distance between the client and offshore provider, because the decision maker is overwhelmed by the ever growing number of offshore providers these days, or simply because the provider was referred by a trusted source.  Whatever the case, your engagement is important, so vet potential providers with the same intensity that you would any other local consultant agency, contractor, or employee… if not more so. 

Here is a list of 5 strategies to follow when narrowing down your list of possible providers:

1. Know Your Needs

Before making any decisions make sure you know exactly what you are looking for in your provider.  With so many choices when it comes to selecting an offshore technology provider these days, it is important to know exactly what your priorities are.   A few examples are:

• Overall cost of the solution (this is always a priority)
• Provider’s location and ability to travel to the US as required
• Specific technology expertise
• Longevity of the relationship (are you going to need the provider around to support the solution for several years?)
• Familiarity or certification in a specific process
• Amount of visibility into provider’s internal operations

Once you have determined your top priorities, make a scorecard that you can use during the evaluation process.  The bottom line is that every engagement is different – the things that work for one client don’t always translate to another, so make sure you have a clear picture of your overall expectations.

2. Don’t Skip the Reference Checks

This is a simple thing that a lot of people just don’t take the time to do.  Check as many references as you can.  And then, check the reference’s references!  Meaning, do your homework to ensure that the references are valid, reputable people and organizations.

3. Interview Everybody

Make sure that the provider is willing to let you interview all potential team members.  Reviewing resumes is not enough.  Not only will interviewing ensure that the guys meet your technical expectations, but also will give you a chance to judge their personally and communication skills.

4. Test Potential Resources 

Many clients I have worked are starting to adopt a policy that only ‘tested’ resources can work on their projects.  While this may sound extreme, there are many benefits to this approach.  Having candidates take a technical aptitude test gives you a glimpse into their overall ability, work style, speed, quality, etc.  It also has the added bonus of letting the provider know that you mean business when it comes to assigning resources to your project and that you will be keenly watching and evaluating all resources they assign to your team.

5. Take a Fieldtrip

If possible travel onsite to the provider’s offices.  While this may not be feasible for smaller projects, this is highly recommended for long term engagements.  This gives you a chance to see firsthand the provider’s daily operations and to start building a solid relationship with all potential managers and team members.  For small projects where it may not be cost effective to travel onsite, I recommend still hinting at the possibility that you might visit their site.  If they seem apprehensive about this idea it should raise a red flag.