Making a Positive Impact with Clients, Colleagues & Communities

Sourcing

Technology has been a major driver of economic growth and job creation, but historically concentrated in a few large metro areas. In fact, over 73% of “high-tech” jobs are still located in San Francisco, San Jose, Boston, NYC, and Washington, D.C., as of February 2023, per the U.S. Census Bureau. Bain Capital Double Impact (“Double Impact”) focuses on catalyzing equitable economic opportunity and job growth in underserved communities through education and workforce development. We believe that continued skills training and strong, engaged, and diverse workforces enable the journey to economic mobility.

Diligence

Over multiple months, Double Impact developed a relationship with Sparq (“the Company”), formerly Rural Sourcing, founder Monty Hamilton. Montyzh recognized that a high-quality onshore workforce based in smaller markets could deliver the fast-paced, agile software development cycles desired by clients with a highly attractive customer value proposition. Together, we saw the strong base of increasingly diverse talent emerging from universities, coding camps, and entrepreneurial communities in small and mid-sized metro areas across the U.S. For us, the opportunity to empower that talent with outstanding people development, flexible workplace models, employee resource groups, and an inclusive culture that enables colleagues to bring their whole selves to work offered the right recipe for long-term impact and growth.

Deal Making

In 2019, Double Impact acquired a controlling interest in Sparq to support its growth and mission to create high-quality technology jobs and innovate the future of work. We believe Monty chose us as a partner because of our purpose of scaling and transforming mission-driven companies, our active partnership model, and our nearly 40 years of experience investing in technology services and software.

Value Creation

We hit the ground running with Monty and his team, quickly initiating a blueprint process to enhance operational excellence and drive impact across five levers.

Prioritized go-to-market

While Sparq’s innovative service model and impact had driven strong early success with a core group of customers, we believed the Company lacked widespread visibility in the market. We partnered with the Company’s leadership to invest in and expand its client service, marketing, and sales teams. Together we hired the first dedicated marketing professional and significantly expanded the sales force. This provided both the platform and medium to showcase the advantages of Sparq’s cost-effective onshore teams – including their deeper understanding of customers’ business needs and real-time, efficient collaboration. This resulted in multiple attractive new customer wins and allowed Sparq to continue expanding its solution across various industry vertical end-markets.

Deepened focus on expanding diversity, equity, and inclusivity in technology

Sparq aimed to have an inclusive workforce that empowers employees to learn and grow in their careers while engaging with their communities and colleagues. These goals led to the formation of the Equity, Inclusion & Diversity (EI&D) Council – a group that solicits engagement across the Company and sets its Diversity, Equity, and Inclusion framework, initiatives, and goals to achieve progress across the business, in local communities, and within the technology industry at large. The framework and EI&D Council enabled Sparq to broaden its reach to high-quality and diverse talent across positions, and from a wide variety of backgrounds. During the course of 2022 alone, Sparq increased BIPOC and Female colleague representation by 54% and 39% respectively.

Geographic expansion

Sparq launched new talent hubs in Baton Rouge, Louisiana, and Buffalo, New York, and acquired locations in Milwaukee and Madison, Wisconsin to advance its mission and expand its reach to new customers. The Company continues to expand into other talent hubs to support the strong growth in demand for Sparq’s software product design and development capabilities.

Workplace of the future

We worked with Sparq throughout the pandemic to reimagine its offices and its role in its communities to retain the Company’s culture, which emphasized inclusivity, teamwork, and intellectual curiosity. Looking beyond the traditional 5-day-in-office work week, they focused on re-envisioning the office experience as somewhere people come to collaborate, train, socialize, and build knowledge centers of excellence across the firm. Today, most of the Company’s workforce is hybrid or remote, and it holds a 92% employee satisfaction rate.

Rebranding

Rural Sourcing rebranded to Sparq in March 2023 to reflect the Company’s high growth and evolving position in the industry. We believe Sparq provides a vibrant new personality for the Company, better symbolizing the value delivered to clients during their digital transformation journeys.

Reinvestment

After more than four years of partnering to drive growth and impact, Double Impact sold the majority of its stake in Sparq to Harvest Partners Ascend, a highly experienced investor in growth-stage technology services companies who shares our conviction in Sparq’s differentiated offering. We also reinvested in Sparq’s next phase of growth as a reflection of our continued conviction in Monty, the Company’s expansion, and its ability to create high-quality technology careers in communities outside of traditional technology corridors. This was an exceedingly positive outcome for all stakeholders – our investors, our team, Sparq, its employees, and customers – and we believe it is another example that there is a relationship between strong impact outcomes and commercial growth.