I did this for three years as a consultant. I worked from the home office (US) 3-4 weeks, and then travel to Europe for a one-week co-lo...rinse, repeat. We grew from 7 people up to 3-4 teams with about 30-40 people. In the end we had a well-oiled machine. What made it effective: good engineers, good build, continuous integration, and co-lo whiteboard design sessions (can't say enough about that last one).
I wish there was a job board that highlighted companies that use distributed teams and are looking to draw talent without requiring re-location.
I mean a real whiteboard with real people in the same room and some markers :)
We would alternate one week co-located and have intense design sessions in smaller teams, then go back to our own time zones and code it for 3-4 weeks.
I've looked at a lot of digital whiteboard solutions, but honestly nothing compares to the real thing. I feel this is still an unsolved problem, and a good startup idea.
I wish there was a job board that highlighted companies that use distributed teams and are looking to draw talent without requiring re-location.