When we set up a team for a client, one of the things we work on is how that team can be better managed and incorporated in to the US side of things. There are a number of processes one can put in place to manage a team, using a number of standard communication tools, but in addition to that, I like to suggest a couple of things which help make a team run smooth. Some of these suggestions are standard management practices, irregardless of whether or not you are managing a virtual team.
1. "Meet" virtually with the project lead or team lead in the offshore location, daily, if possible at the same time. Use GoogleTalk or Skype or the phone, or whatever you prefer, but make sure you have a check in daily. This is especially important at the beginning so that you feel comfortable that work is actually getting done, and so that the offshore team feels comfortable that there will be a time that they can actually ask you questions and get answers.
2. Give credit where credit is due. This is not specific to a virtual team, but rather a good management practice. Periodically make sure that the entire team (no matter where they are located) knows the contributions of different team members — who has done something or found a solution to something that is helpful to the entire team, who has solved a difficult bug, etc. It makes everyone feel involved, regardless of whether or not they are an outsourced team, or actually working directly for your company.
3. Bonuses. When something is done particularily well by one person, by a team, etc., make sure there are little incentives along the way. Even if it is providing money for an evening out for celebration, this is especially important when teams are distributed. Provide ways for them to bond together around your company. This can take place even if the team is an outsourced team; just talk with your service provider about how this can be done.
