Based on recent research, Frost & Sullivan shares these tidbits about managing IT projects offshore:
Establish timelines and performance metrics to measure the progress of offshore employees and outsourcers in order to monitor progress and ensure on-schedule project completion.
Use succinct service-level agreements to ensure adherence to projected cost savings.
When choosing an offshore service provider, match your needs to the services offered through a complete analysis of cost differentials, standards, service levels, certifications, and risk mitigation.
When considering what country to send work to, evaluate what incentives they're offering. The analyst firm cited a China incentive program, called "Five Exception and Five Reduction," which allows companies to get tax breaks as well as free first year rent. Mexico offers six-month grants for IT jobs created in the southern part of the country. Poland offers grants for job training. Romania offers software developers an income tax holiday. Malaysia's 2020 program incentives range from partial exemption of income tax to government grants for building facilities.
You can read a press release about the survey here.