Adaptive Hiring
Jul 10, 2024

The Total Economic Impact of using Andela's Talent Marketplace

5 minutes

Forrester’s Total Economic Impact™ (TEI) study is a comprehensive methodology designed to evaluate the financial impact of technology investments and solutions. For over 20 years, Forrester has conducted thousands of TEI studies across various industries and technologies, providing organizations with a robust framework to assess potential costs, benefits, flexibility, and risks associated with new initiatives.

Andela commissioned Forrester Consulting to conduct a TEI study on Andela’s talent marketplace;  aiming to provide organizations with a clear understanding of the economic value proposition offered by Andela’s services. By combining qualitative and quantitative data, the study offers a holistic view of the potential return on investment (ROI), speed, and cost-savings decision makers can use to guide their talent acquisition strategies.  

In this 2024 study, Forrester Consulting conducted four customer interviews and surveyed 30 respondents from companies with experience using Andela’s services. The results were then combined into a composite company, assumed to be headquartered in North America with 2,500 employees and annual revenue of $1 billion.  

The TEI study of Andela’s talent marketplace provides data to show the cost savings and business benefits achieved when organizations shift from traditional hiring models to Andela’s adaptive hiring model. The findings offer valuable insights into how Andela can accelerate hiring processes, increase project value, and deliver significant cost efficiencies.  

The key findings based on the composite company were as follows:

Accelerated Hiring Process

One of the most significant pain points is the time it takes to hire qualified talent. The study found that Andela accelerates the hiring process by a significant 66%.

As one  head of engineering at a CPG organization noted:

We're able to get through interview rounds really fast. Once we built a track record and trust with Andela, we're not doing five rounds of interviews to reach a decision, we're doing two or three. I've gotten turnaround of two weeks versus six."

This dramatic reduction in hiring time means you can scale your teams faster and meet project deadlines more effectively.

Increased Project Value Through Accelerated Productivity

By leveraging Andela's talent pool, organizations saw a 33% reduction in project timelines. This acceleration led to significant financial gains, with the study reporting additional revenue of $13.8 million by Year 3 for the composite organization. The high quality of work delivered by Andela talent was a key factor in this acceleration, with interviewees noting less rework was required due to code and tasks being completed correctly on the first attempt. In fact, three in five survey respondents agreed that Andela talent helped reduce the amount of project rework and fixes needed.  

A Global Executive Director in advertising and marketing shared:

We're doing more projects with fewer complaints and higher client satisfaction. When a client comes to us with a solution they want put together, we're more likely to deliver against it than we would have in the past."

Cost Efficiencies

The study revealed that organizations saved $80,000 per talent hired through Andela. This 40% cost efficiency allowed companies to maximize their hiring budgets and add more workers to support projects than they could afford previously.

Risk Mitigation

By partnering with Andela, companies avoided potential compliance infraction costs, with the study estimating $640,000 in avoided risk over three years. This benefit stems from Andela's management of global employment paperwork and compliance standards.

Talent Retention and Quality

The study highlighted Andela's ability to provide high-quality, reliable talent, leading to improved retention rates. Organizations avoided an estimated $2.4 million in talent replacement costs over three years.

A Head of Engineering in the CPG industry remarked:

We've been able to make that shift because of the stability the Andela hires bring to the team. … I forget that key people on my team come from Andela. I've got feature leads on our mobile team that come from Andela. It's been awesome."

One-sentence financial summary: Benefits using Andela’s global talent marketplace:

The financial analysis which is based on the interviews and survey found that a composite organization experiences benefits of $22.0 million over three years versus costs of $11.2 million, adding up to a net present value (NPV) of $10.9 million and an ROI of 97%

Making the Case to Your Leadership

As you consider presenting the value of Andela to your organization's decision-makers, here are some key points to emphasize:

1. Rapid scalability: Andela enables quick scaling of technical teams, reducing time-to-market for critical projects.

2. Cost-effectiveness: The 97% ROI and significant cost savings per hire make a compelling financial case. For every one dollar spent, it's almost two back.

3. Quality assurance: Andela's rigorous vetting process ensures access to top-tier global talent.

4. Risk reduction: Andela's management of compliance and paperwork mitigates potential legal and financial risks.

5. Improved project outcomes: Faster completion times and higher-quality work lead to increased customer satisfaction and revenue.

In today's competitive tech landscape, the ability to quickly access and deploy skilled talent can be the difference between success and stagnation. Be the hero for your organization by surfacing quality talent that has many business benefits, ROI being one of them. The Forrester study provides clear evidence that Andela is not just a talent provider, but a strategic partner in driving business growth and innovation.

Ready to transform your tech talent strategy? Explore how Andela can help your organization achieve results and deliver ROI.  

Schedule a consultation with our team to learn more about how Andela can drive value for your organization.

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