Being able to work in virtual teams has become one of basic employability skills. Challenges of work in virtual teams are multifaceted. Such teams cope with lack of conventional trust building mechanisms, barriers to communication are significant due to absence of visual cues such as body language and facial expressions and team conflict resolution is often more challenging that in conventional teams. Rapport building and coping with feelings of isolation further add to the challenges of working in virtual teams. Particularly important is the multi-cultural dimension. Cultural diversity poses challenge in business communication by itself, but its relevance is even more emphasized in virtual environment. Individuals engaged in virtual teams should possess sufficient level of technological knowledge for efficient and effective communication and performing of tasks with other team members.