When implementing software development in a global environment, a popular strategy is the establishment of virtual teams. The objective of this paper is to examine the effective project management of this type of team. In the virtual team environment problems arise due to the collaborative nature of software development and the impact distance introduces. Distance specifically impacts coordination, visibility, communication and cooperation within a virtual team. In these circumstances the project management of a virtual team must be carried out in a different manner to that of a team in a single-site location. Results from this research highlighted six specific project management related areas that need to be addressed to facilitate successful virtual team operation. Organizational structure, risk management, infrastructure, process, conflict management and team structure and organization. Additional related areas are the sustained support of senior management and the provision of effective infrastructure. © 2006 IEEE.