Over the last decade, an increasing number of organizations have started software development in a globally distributed environment and at the same time organizations are adopting component-based software development methodologies. Globally distributed component-based software has introduced potential benefits as well as new challenges in the management of software projects. One of the major challenges is that many organizations endorse the process of global software development and adoption of component-based software methodologies prior to testing their management readiness for the globally distributed development activity. The objective of this research paper is to identify challenges associated with managing component-based software development in globally distributed development environment. We used customized search terms, derived from our research question, to systematically identify literature on managing CBS development in a global context. We have identified challenges such as lack of clear component/project ownership, inter-dependency between components, inadequate processes to manage requirements changes, gap in understanding components and processes, organizational cultural differences, lack of efficient task allocation and tracking of bugs among teams as key project management challenges in globally distributed component-based software projects. Based on the systematic literature review results, we suggest that there is a need to develop globally distributed component-based software development strategies and standards to help software development organizations in achieving the true potential of software reuse at lower development costs and shorter time-to-market.