I currently work on a project where we adopted an agile process that integrates elements of extreme programming and agile modeling. Our approach is unconventional however; instead of the team being co-located, I work remotely as the lead developer.The risk of increased communication costs can be mitigated rather easily. However, trust is the most complicated element of team dynamics to establish and maintain. A virtual team must address this issue in order to succeed.Remote teams can work quite well. We have been delivering quality software in a timely manner, within the expectations of management for the last two years. We actually are more efficient and successful with a virtual team than when we were all co-located in the same room.