Have you ever worked on a application development project that used both an onshore and an offshore team? If so, what were some of the challenges you encountered?

This question indicates that the organization uses this type of development strategy or is considering it. They either want to determine if you have experience with this type of project structure or whether you would recommend it. If you have worked this way before, describe your experience, the challenges, and the benefits. If you haven't worked with offshore teams, admit this and then state your understanding (but not your experience) of this strategy.

"I have worked on projects which employed both onshore and offshore development teams. The company used this strategy to save costs and accelerate the development cycle. While they were able to achieve both of these objectives, there were some challenges. These all centered around communication. While language wasn't an issue (the offshore team was fluent in English,) culture, timezones, and the backgrounds and training of the developers did create some conflicts. As the project progressed and we became familiar with each other's styles, we were able to overcome the communication issues, and the project progressed smoothly."