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It is very common for projects involving people from different time zones which brings with it a bunch of management and communication issues. Is there a terminology used in Software world for such type of projects or such type of scenarios?

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There's the term Virtual team (also known as a geographically dispersed team, distributed team, or remote team) which defines the ones made up of people in different physical locations.

One can also read in two different articles the following definitions

groups of geographically, organizationally and/or time dispersed workers brought together by information and telecommunication technologies to accomplish one or more organizational tasks.

From: Powell, Piccoli and Ives (2004). Virtual Teams: A Review of Current Literature and Directions for Future Research.

small temporary groups of geographically, organizationally and/or time dispersed knowledge workers who coordinate their work predominantly with electronic information and communication technologies in order to accomplish one or more organization tasks.

From: Ale Ebrahim et. al. (2009). Virtual R&D Teams in Small and Medium Enterprises: A Literature Review.

For more information i suggest you to read the Wikipedia article about virtual teams.

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