Software development projects seem to raise many challenges and issues. These issues are exacerbated when the projects are distributed globally and thus software development projects are multicultural. Globalization has increased the need to estimate the effectiveness and cost savings of every project. That is why many projects are outsourced or in other ways distributed to cheaper countries. The main problems of software development projects are related to knowledge sharing, communication, and cultural issues. This paper studies the challenges in global multicultural software development projects and the kinds of collaborative tools available for software development. This paper presents an examination of a collaboration model for global multicultural software development. The model is based on the authors' own work experience and literature research. We propose that this model could be used as a reference model when planning global software projects.