PurposeThis study aims to empirically investigate the relationship between different global software development (GSD) challenges (management, process, social, technical and environmental challenges) and software project success. Further, the study examines the moderating role of total quality management (TQM) between the relationship of GSD challenges and success of software projects.Design/methodology/approachUsing two field studies, the authors collected data form software developers working in globally distributed teams. In study 1 (n = 194), relationship of different dimensions of GSD challenges (management, process, social, technical and environmental challenges) and project success was examined. In study 2 (n = 138), moderating role of TQM was examined on the relationship of GSD challenges and project success.FindingsThe results of study 1 indicate that there is a negative relationship between all dimensions of GSD challenges and project success. Findings of study 2 confirmed that TQM practices moderate the negative relationship between GSD challenges and project success.Practical implicationsThe findings of the study provide guidelines to the project managers of software industry to mitigate GSD challenges using TQM practices.Originality/valueStudy adds in the literature of TQM, GSD challenges and project success by (1) empirically investigating the relationship between different GSD challenges and software project success and (2) by examining the moderating role of TQM practices on relationship of GSD challenges and project success in global software development industry.