What is the Difference Between Remote Team and Virtual Team?

A few decades ago, building software meant business owners had to hire an onsite team of software developers or outsource development to an offshore location. Fast forward to today, and there are multiple ways to collaborate with tech talent. Teams working together remotely, spread across the globe, have become the new norm. In particular, the question of remote vs virtual teams have emerged with the rise of alternatives to the traditional in-house model, giving businesses the flexibility to add skilled developers from various locations. In this post, we’ll break down the differences between these two models. Let’s dive in!

What are virtual teams?

Many organizations prioritize finding, motivating, and retaining skilled talent – and for many, virtual teams are a strategic way to stay competitive in the talent market.

But what exactly does a virtual team entail? True to the word “virtual,” something that can be done or seen using the power of technology, this model relies on technology to connect team members who are geographically dispersed. 

Virtual teams consist of individuals working beyond the physical office, often spread across different locations, time zones, and even cultures. For instance, a virtual team might include IT specialists from Brazil, Colombia, and Poland, all hired to work on the same project. With modern software, these teams can collaborate seamlessly, sharing information in real-time without geographic restrictions. Team members may never meet face-to-face, but they remain united in working toward shared goals. One of the biggest advantages of virtual teams is the ability to tap into global talent pools, offering not only cost savings but also access to a broader range of professionals.

What are remote teams? 

In the remote team vs virtual team context, terminology can be tricky. Remote teams share similarities with virtual teams, and it’s easy to see why the terms are often mixed up. Like virtual teams, remote teams operate from various parts of the world – but the key difference is that remote teams work together from a single office location.

Whether your remote team is based in Europe, LATAM, or Asia, each member is dedicated to your project, reporting directly to you or your designated team lead. 

Remote teams are a preferred model because they offer the advantage of a physical presence in a chosen tech hub, fostering a stronger connection among team members. At nCube, we champion this model as it allows us to build fully integrated teams for our clients in Europe or LATAM. The remote teams we build work full-time, five days a week, 40 hours per week, committed to a single project.

Remote vs virtual teams: Differences

It’s worth noting that managers accustomed to office-based teams enjoy the benefits of face-to-face communication, immediate access to their teams, and personal interaction. However, with today’s technology and tools, it’s still possible to maintain a high level of control and synchronization, almost as if your team were right within your office walls.

If you’re still wondering how similar remote vs virtual teams really are, you’re not wrong – they do share common ground. Yet, understanding their unique differences is essential for effective strategizing. Let’s dive into the key distinctions between the remote vs virtual models.

• Distance to the headquarters and other team members

In the remote team vs virtual team paradigm, proximity to other team members is the key differentiator. When you hire a virtual team, you’re working with a group of professionals spread across various regions, often separated by time zones, countries, or even continents. They contribute to the same project asynchronously, often working during limited or no overlapping hours.

In contrast, a remote team operates more like a traditional team with a dedicated office space in a tech hub. This setup brings the team closer in time zone to the headquarters, making it easier to connect. Team members may occasionally visit HQ for onboarding, training, or team-building events, while business leaders can travel to meet the team in person. 

• Office space in virtual vs remote setup

The office setup varies significantly between working remotely vs virtually. Virtual team members don’t share a physical workspace, allowing them the flexibility to work from locations of their choice – an arrangement preferred by 96% of workers today. This setup benefits employers too, as it eliminates the need for office rentals and IT infrastructure, helping businesses save significantly on their software development budget.

On the other hand, remote teams operate from a single, dedicated office space in a location separate from headquarters. While still benefiting from a collaborative environment, they work in the same location, which lends itself to flexibility and face-to-face teamwork. This setup is preferred by our clients, such as doTerra, AstraZeneca, Life360, and others.

• Remote team vs virtual team: Team dynamics

When comparing remote and virtual teams, both setups rely heavily on technology to collaborate and create a sense of camaraderie. For remote teams, connections tend to be stronger among members working together in the same location. On the other hand, building synergy with the headquarters team requires more intentional effort. 

Remote teams also benefit from face-to-face collaboration and direct communication with their coworkers. However, to foster a sense of belonging between remote team members and the headquarters team, the client plays a key role in strengthening these connections. 

With virtual teams, building a sense of unity among team members worldwide is essential, yet this model leans more toward creating a cohesive network of autonomous professionals.

Whether working virtually or remotely, it can be challenging for clients to cultivate a work environment that bridges geographical gaps and fosters unity across locations.

A remote team vs virtual team: Pros and cons

To truly understand these models, it’s helpful to weigh the pros and cons of each model. Here’s a detailed breakdown of the advantages and disadvantages of both models:

Pros and cons	Remote team	Virtual team
Cost savings by tapping into cost-effective regions	+	+
Hiring flexibility with no geographic restrictions	+	+
Simplified collaboration, as team members are often in the same location	+	–
Reduced expenses on office space and administration	+	+
Promotes autonomy and self-reliance among employees	–	+
Easy to scale the team up or down as needed	+	+
Opportunity for in-person meetings for all team members	+	–
Requires setting up detailed communication and collaboration processes	+	+
Coordinating schedules to work through time zones	+	+
Limited daily face-to-face interaction, which can impact trust and rapport	+	+

A remote vs virtual team: Which one is right for you?

How to choose between a remote vs virtual team? It really comes down to a few key questions. Start by considering the nature of each model. Do you want team members spread across different parts of the world, with little chance of meeting in person? Or would you prefer a centralized workspace in one of the world’s tech hubs where they can collaborate face-to-face? Here are some other essential questions to help you decide between sourcing talent remotely or virtually:

• Is it essential for team members to visit your headquarters, or do you plan to have regular on-site visits? If so, a remote team is likely your best choice, given that the logistics will be easier to manage.
• How often do you need in-person collaboration? If daily teamwork is a must, a remote model will help keep that face-to-face interaction consistent.
• Can you arrange a physical office space? If not, a virtual team might be the way to go. At nCube, we’ll help you set up an office in your chosen location, fully equipped for your team.
• Do you have the capacity and knowledge how to manage virtual teams, where employees scattered around the globe? If not, a remote team may be a simpler solution, with smoother communication between your on-site and remote members.
• Does your chosen location have enough talent to meet your needs? If not, a virtual team lets you cast the net wider and dive into a pool of global tech workforce.

These questions should help guide you in the right direction.

Hire virtually or remotely with nCube

As you can see, building a team virtually vs remotely isn’t all that different. At the core of both approaches is the practice of delegating software development tasks to skilled employees in other locations.

At nCube, we offer both options to clients in the EU and North America by sourcing top talent from Europe and LATAM. Here’s how we support you with virtual or remote hiring:

Top 1% talent: We’re all about matching you with the very best software developers, whether they join your team remotely vs virtually. Through a rigorous multi-step screening process, we ensure that every engineer we add brings tech excellence, excels in soft skills, and is fluent in English.

Your dedicated workspace: For each client, we handpick a facility where your team will be based, complete with all the tools they need to collaborate remotely or virtually. So, whether you’re building a team in Poland, Brazil, or Argentina, we make sure your team members are equipped to dive right into your project.

Swift team assembly: Chances are you’re asking yourself how to build a virtual team fast? We share your sense of urgency. That’s why we’re able to source and onboard the talent you need in just 2-6 weeks and provide first candidates within 24-48 hours of our kick-off meeting.

Commitment to retention: For us, assembling a team is just the start – we’re dedicated to nurturing it, too. Last year, we reached a 98% retention rate thanks to a positive work environment, competitive salaries, and great bonus structures.

A strong cultural fit: Europe is a mosaic of cultures, and we will help you pick engineers who’ll fit right into yours. From workflows to management styles, we embed our team into your unique culture and processes.

Ready to get started? Let’s talk about how a team of skilled remote developers can help you meet your goals.