How to deal with external vendors

Some of the best practices to note –

1. Keep all communications straight related to contract
2. Keep all communication in written (email, meetings, report, etc.)
3. Ask for detailed description or summary of the work done while entertaining invoices
4. Periodically check applicable rates both for additional and reduced work, negotiate rates
5. Strictly adhere to Service Level Agreement (SLA)
6. Track vendor performance, look out for any conflict of interest situation

You need to know if the vendor is simply augmenting your team or if they are managing a piece of work.

In the case of project augmentation, you are on the hook for managing the staff and their work. If they are providing managed work, you need to manage their scope of work, making sure they fulfill the work according to the agreed acceptance criteria.

With regards to the process in selecting a vendor's solution, be sure to include IT Risk & Compliance to ensure compliant with the organizations policies

May or may not be out of your realm of responsibility, but felt worth the mention nonetheless.

Is there a statement of work for the contract, a list of deliverables, or a schedule? If there is, become familiar with it/them so that you understand the expectations and help manage them.

Thanks Anupam that gives me something to start with.

Thanks Stephane.