So true.
When choosing your off-shore dev team, you should be looking at communication, track record and skill in the particular technology/industry. In particular for communication, I look at how many hours of overlap do they have with my current work hours. Being from the East Coast I find India and New Zealand difficult to work with as at best I have an 1-2 hours of overlap (and often they may ask for two meetings, one in your morning and one in the late evening).
Track record. Can you talk to some current and former clients who have had comparatively complex technology built? Are those clients happy, were the projects built on time, did they have any frustrations with the process, did they need a dev team to clean up the code? What was documented?
One last thing to check for is the turnover rate (India can be especially bad). How often do they need to off-board/on-board new resources? I've had teams where every 3 months someone is going and someone is coming.
i have seen more hapless managers than poor offshore developers, it takes dedication to manage an offshore team, a daily standup is not enough, you need to communicate effectively.
if you're a small shop than you will find yourself doing the management out of necessity (you can't be burning cash and seeing no return). if you're a big company however (and i mean top end of Fortune500) then definitely ask your boss whether you can vet and get involved in the hiring process ( i say this because big companies have contracts with offshore consultancies and don't really look at small things like individual developer's experience when hiring the consultancy)
Communicate, Trust and organise physical visits (both ways)
Think about it this way: Any project is composed of the business domain knowledge and execution skills. It's relatively easy to find off-shore dev teams with ok to good technical skills. It's a lot harder to communicate what you want built, how it should function and all the business rules that should be incorporated to a group of strangers who have different cultural contexts and cues and who most likely speak English as a second language. Off-shore dev teams are missing a whole lot of context that you or I may take for granted. Are you going to be able to manage a dev team without that context the same way you would manage a on-site dev team? Probably not.
Some things that will help significantly in transferring that knowledge are requirement documents, technical specs, wireframes/mockups (all that documentation that startups neglect). You should probably be looking for demos on a regular basis. Managing an off-shore team is often a full-time job, especially when getting the project off the ground.
However, getting involved in another company's hiring process is rarely a good idea. Most offshore projects are results oriented, so getting involved in hiring is too low level (i.e. micro-management). In other words, manage the output, not the process.
With the above said, involvement in hiring can be effective when 1.) you're using the offshore firm to acquire very specialized, high-end talent, and 2.) you're paying a substantial premium above local market to ensure hiring is a rare event.
Once the revenues start to come in, feel free to go through the pain of hiring of A players, which is only half the journey, you need to also retain them by ring fencing piles of cash (bonuses, perks etc...) through out their time in your company, it is not for the faint hearted
But, as solomatov said previously, best way to do it is via a middleman. The middle man is from the offshore country and has most likely been in the US for a couple of years and has created a wide network of potential clients. These were by far our best clients. I know at least 4,5 eastern european consultancies that started this way.
If it is outsourced keep in mind you are most likely going to be hiring just for the coding side of dev work.
You will still need to handle requirements gathering, design, specs, wire-frames, quality assurance, project management, project vision, scope, etc.
I'm pointing this out because most of the time an internal dev handles a decent chunk of these tasks.
I'd always recommend at most a 1:2 ratio of internal to outsourced.
https://www.toptal.com/#contract-just-respected-software-arc...
They screen their talent which makes everyone in the network an expert and they screen their clients which makes them a joy to work with.
Disclosure: I'm part of their network and recently joined their team.