In the face of the ongoing freight recession, transportation and logistics companies are grappling with the challenge of modernizing their systems while managing tight budgets.
The industry’s complex technology landscape, coupled with economic uncertainties, demands innovative approaches to drive efficiency and maintain competitiveness.
The Current Landscape
Recent McKinsey research data highlights the complexity of the industry’s tech stacks:
- 34% of companies use 8-9 different technology solutions
- 37% employ 5+ solutions in warehousing alone
Many of these systems are nearing end-of-life, necessitating urgent modernization or replacing.
The Blended Team Solution
Blended software development teams combine onshore and nearshore talent, offering a strategic approach to modernization that optimizes quality and cost-effectiveness.
- Significant Cost Savings
Blended teams can cut costs by 50% versus working with purely onshore consultants. Without sacrificing quality, blended teams allow clients to leverage lower operational costs in nearshore locations.
- Enhanced Quality and Innovation
Combining onshore expertise with nearshore resources allows for close collaboration and cultural alignment. This results in faster delivery times and more innovative solutions.
- Operational Resilience
Blended teams allow clients to develop agile, future-ready solutions that can adapt to industry challenges and economic shifts. They also ensure 24/7 operational capability crucial for the industry.
- Time Zone Compatibility
Nearshore teams offer better alignment with U.S. time zones compared to offshore alternatives. Blended teams allow for real-time collaboration and faster problem solving.
Implementation Strategies
To maximize the benefits of a blended team, we must follow four key strategies that ensure improved efficiency, speed, cost savings and value.
Assess Current Systems: Identify which legacy systems are most critical for modernization.
Define Clear Objectives: Set specific financial goals for cost reduction and performance improvements.
Start Small: Begin with pilot projects to demonstrate the effectiveness of blended teams.
Continuous Evaluation: Regularly assess the performance and ROI of your blended team approach.
Looking Ahead
While the freight recession presents challenges, it also offers an opportunity to reimagine our technological infrastructure. By embracing blended software development teams, we can drive modernization efforts that not only weather the current storm but position our companies for long-term success.
Remember, in this 24/7 industry, technological agility is not just an advantage—it’s a necessity. Let’s seize this moment to build more resilient, efficient, and innovative systems that will carry you into the future of freight and logistics.
About the Author
As Sparq’s Chief Executive Officer, Monty Hamilton leads the executive team and drives the overall strategy. Sparq is a unique digital engineering company focused on helping its clients realize their digital transformation strategies and creating thousands of technology careers in places where they otherwise would not exist. Monty has helped grow the firm through two private equity investments to become the largest privately held digital engineering firm with colleagues across the US and Latin America. He is a sought-after speaker on the outsourcing and domestic sourcing topic and has recently been featured on CNBC, BBC, NPR radio and at various industry conferences including IAOP, Gartner, Digital Georgia and others. In addition, recent articles depicting Sparq’s innovative outsourcing model have appeared in Business Week, CNN Money magazine, CFO magazine and CIO magazine.