The growing trend in offshore software development has imposed new skills requirements on collaborating global partners. In the U.S. this has translated into skill sets that include communications, project management, business analysis, and team management. In a virtual setting, these skills take on a complex proportion. This paper describes an educational initiative in offshore software development between undergraduate students enrolled in a project management course at Marquette University, USA and graduate business students enrolled in an Information Systems Analysis and Design course at Management Development Institute, India. The course replicated an offshore client/vendor relationship in a virtual setting. For faculty considering such initiatives, this paper describes the setting and factors critical to success of this initiative and cautions against others that can be detrimental to such an effort.