PurposeIn the postpandemic era, organizations have planned a combination of on-site and virtual work to portray the “New Normal”. The authors aim to analyze the effect of virtual team (VT)-building strategies on virtual team performance and HR performance in the “New Normal” context. This study aims to explore the drivers and barriers to VT performance and its contribution to HR performance.Design/methodology/approachThe study utilized the grounded theory approach. Semistructured interviews with 114 VT leaders of national and multinational companies in India were conducted and NVivo 8.0 software was used to analyze data.FindingsVT-building strategies contribute to VT collaboration and subsequently to VT performance. It was found that VT-building strategies catalyze VT collaboration which is impacted by the drivers and barriers of VTs, affecting VT performance and HR performance.Practical implicationsThe primary contribution of this work is the development of a framework that delivers important insights to VT leaders, talent managers, HR professionals and academicians.Originality/valueThis study uniquely examines the VT-building strategies and VT performance through the “New Normal” paradigm lens. This study proposes a conceptual model for VT performance and HR performance. It also provides the team-building strategies, drivers and barriers for VT performance. This work offers the roadmap to achieve VT performance and HR performance. This research also contributes to the human resource management literature by discussing the VT performance and HR performance in the “New Normal” paradigm. It provides insights to VT leaders, talent managers, HR professionals and academicians.