We are worried that using HTTP will involve too much overhead and this will increase latency One the suggestions is to use the WCF NetTcp binding, which is supposed to be much more performant
Who says that? Ask them to show you benchmarks as I don't see how TCP would improve the performance that much. Sure it uses a binary protocol, but the business logic in the server is probably the bottleneck and not the actual transfer.
HTTP is much better since there are already a lot of ready to use infrastructure that will help you scale later of if required (like load balancing, cache proxies etc)