Is it important to collocate the project team ?

Co-location allows for 1 - discussion at the white board 2 - communication through close proximity, 3 - communicating personal feelings and chats at break, 4 - information radiators 5 - others you can ask are nearby, 6 - engenders a feeling of belonging, 7 - Camaraderie. 8 - there are no secrets 9 - someone is always looking over your shoulder 10 - your work habits are on display and most will work harder and better as a result

This level of camaraderie is not achieved with electronic communications and a 15 min video stand-up once a day. Attempting to do so increases the risk of failure. It is more difficult to create the 'one team' mentality.

Anish, well you still have few team member working side by side with you so it is not completely eliminating the F2F meeting.

Think of the difficulties in trying to make the remote model work for your baseball team. I know that is obviously absurd. But why? Many of those difficulties actually apply to the Agile Team.