How Modulr Achieved Multi-Million Pound Savings Through Strategic Change Management

4 Min. Read

Business Challenge

Modulr Finance, a VC-backed Fintech, faced a significant challenge in its Product Engineering team, which was burning cash without internal capacity to resolve the issue. In 2018, the company hired nearshore engineering talent as a short-term solution to meet its product roadmap. However, unforeseen challenges, including the pandemic, extended the dependency on this costly setup.

By early 2022, Modulr decided to consolidate the nearshore teams and transition to a new, Mumbai-based model. Lacking internal capacity to manage the change at pace, the CEO sought an Interim Transformation Director to lead the transition, targeting new hires by Q1 2023.

The Solution

ZRG Interim Solutions was engaged to source a suitable Interim Transformation Director to lead the transition from an outsourced to a captive engineering team. The ideal candidate needed a blend of Project Management, Technology, and Product expertise to ensure on-time, on-budget delivery.

Given the project's high visibility to the board and investors, the chosen candidate needed to manage both detailed execution and strategic communication. ZRG identified James Coughlan, whose background in transformation and technology, especially in investor-backed businesses, made him the ideal fit.

The Action

Upon starting, James quickly identified key work streams and mitigated risks to technology delivery and business continuity. He developed a business plan and launched an engineering forum to communicate the project’s objectives and address team concerns. This communication was later extended company-wide as the transition plan took shape.

James focused on refining the offshore hiring funnel, using weekly learnings to adapt the approach and prioritizing continuous communication among impacted teams. To maintain progress, regular action-tracking sessions were held with key stakeholders, using a live RAG status, a risk register, and monthly steering committees with the CEO and CFO to monitor risks and keep the programme on course.

In early 2023, James and the Interim Head of People visited Mumbai to bridge cultural differences and optimize long-term collaboration.

The Results

Within five months, the programme made dozens of offers, successfully hired a significant number of engineers, and began transferring knowledge and IP to onboard the new recruits into existing squads. The Mumbai-based model enabled Modulr to significantly reduce nearshore daily rates, with a budget forecast for December 2023 showing a monthly run rate saving in the hundreds of thousands compared to the previous year. The programme's success led to forecasted annual cost savings in the multi-million-pound range, positioning the company for profitability by year-end 2023.

Myles Stephenson, Modulr CEO:

“James brought the energy and vision we needed for this critical programme. His pace, control, and commitment to empowering the teams were key to successfully onboarding new engineers in just five months. The new operating model maintains operational effectiveness while delivering significant cost savings. I highly recommend James for any complex transformation programme.”