diff --git a/babel.config.js b/babel.config.js
new file mode 100644
index 00000000..07815e13
--- /dev/null
+++ b/babel.config.js
@@ -0,0 +1,59 @@
+module.exports = function (api) {
+  const isProd = process.env.APPMODE === "production";
+  api.cache(!isProd);
+
+  const generateScopedName = isProd
+    ? "[hash:base64:6]"
+    : "teams_[path][name]___[local]___[hash:base64:6]";
+  return {
+    presets: ["@babel/preset-env", "@babel/preset-react"],
+    plugins: [
+      [
+        "@babel/plugin-transform-runtime",
+        {
+          useESModules: true,
+          regenerator: false,
+        },
+      ],
+      [
+        "react-css-modules",
+        {
+          filetypes: {
+            ".scss": {
+              syntax: "postcss-scss",
+            },
+          },
+          generateScopedName,
+        },
+      ],
+      "inline-react-svg",
+    ],
+    env: {
+      test: {
+        presets: [
+          [
+            "@babel/preset-env",
+            {
+              targets: "current node",
+            },
+          ],
+        ],
+        plugins: [
+          [
+            "module-resolver",
+            {
+              alias: {
+                styles: "./src/styles",
+                components: "./src/components",
+                hooks: "./src/hooks",
+                utils: "./src/utils",
+                constants: "./src/constants",
+                services: "./src/services",
+              },
+            },
+          ],
+        ],
+      },
+    },
+  };
+};
diff --git a/babel.config.json b/babel.config.json
deleted file mode 100644
index 00432fb5..00000000
--- a/babel.config.json
+++ /dev/null
@@ -1,51 +0,0 @@
-{
-  "presets": [
-    "@babel/preset-env",
-    "@babel/preset-react"
-  ],
-  "plugins": [
-    [
-      "@babel/plugin-transform-runtime",
-      {
-        "useESModules": true,
-        "regenerator": false
-      }
-    ],
-    [
-      "react-css-modules",
-      {
-        "filetypes": {
-          ".scss": {
-            "syntax": "postcss-scss"
-          }
-        },
-        "generateScopedName": "teams_[path][name]___[local]___[hash:base64:6]"
-      }
-    ],
-    "inline-react-svg"
-  ],
-  "env": {
-    "test": {
-      "presets": [
-        [
-          "@babel/preset-env",
-          {
-            "targets": "current node"
-          }
-        ]
-      ],
-      "plugins": [
-        ["module-resolver", {
-          "alias": {
-            "styles": "./src/styles",
-            "components": "./src/components",
-            "hooks": "./src/hooks",
-            "utils": "./src/utils",
-            "constants": "./src/constants",
-            "services": "./src/services"
-          }
-        }]
-      ]
-    }
-  }
-}
diff --git a/webpack.config.js b/webpack.config.js
index 53bce9e0..5a4d4326 100644
--- a/webpack.config.js
+++ b/webpack.config.js
@@ -4,7 +4,10 @@ const singleSpaDefaults = require("webpack-config-single-spa-react");
 const path = require("path");
 const autoprefixer = require("autoprefixer");
 
-const cssLocalIdent = "teams_[path][name]___[local]___[hash:base64:6]";
+
+const cssLocalIdent = process.env.APPMODE === "production"  
+  ? "[hash:base64:6]"
+  : "teams_[path][name]___[local]___[hash:base64:6]";
 
 module.exports = (webpackConfigEnv) => {
   const defaultConfig = singleSpaDefaults({