This paper argues that, in the management of software development projects involving teleworkers, certain processes and base practices need more careful management than in projects carried out in the traditional centralized development environment. Based on the results of our surveys; the series studies conducted in software engineering principles and in management methodology of teleworking; a number of key issues specific to telework condition have been identified. A new Software Process Improvement approach for Teleworking Environment (SPITE) has been developed as a major contribution to the software industry, which fills an important gap in the software process modeling. The focus of this paper is to present the in-depth analysis of some of these issues that are not addressed in the current process models. Three processes and twenty-five base practices are created and used to provide major input to the development of SPITE.