This has been very true in my experience. Even having the team in the same room and the same space, but with individual cubicles can be insufficient. It is really hard for people, especially developers, to let go of their personal space. I know it was for me during the transition.
Working on many different teams in numerous cities over the last few years, the bullpen and shared space is one of the best ways to remove silos and promote organic conversation (kill meetings). Pairing instead of code reviews (or gated checkins), talking instead of team meetings, one on ones instead of political games and going out for coffee to think through a hard problem. With the right team, you show up at 9am and leave work at 10am (really it is 5pm, but it feels like 10am).
Working on many different teams in numerous cities over the last few years, the bullpen and shared space is one of the best ways to remove silos and promote organic conversation (kill meetings). Pairing instead of code reviews (or gated checkins), talking instead of team meetings, one on ones instead of political games and going out for coffee to think through a hard problem. With the right team, you show up at 9am and leave work at 10am (really it is 5pm, but it feels like 10am).