Andela Inc., the world’s largest private marketplace for technical talent, today released a Total Economic Impact™ (TEI) study that shows the company provided customers with a three-year 97% return on investment. The Forrester Consulting study, commissioned by Andela, also found that customers experienced faster time-to-hire, accelerated project timelines, and other benefits.
The study found that most organizations struggle to hire technical talent fast enough to keep pace with needs. However, customers using Andela—which provides a vetted, global talent pool—accelerate time to hire talent by 66% and accelerate project timelines by 33%. With a faster time to market, the companies recognized value sooner on projects and additional revenue. Andela customers also experience labor cost savings and reduced compliance risks.
In organizations like the composite Forrester created based on interviewed customers in the Total Economic Impact study — with 2,500 employees and revenue of $1 billion — companies using Andela to source some technical talent could see benefits of $22 million over three years vs. costs of $11.2 million, adding up to a net present value of $10.9 million. Companies may recognize cost savings of $80,000 per talent hired from Andela without sacrificing quality, enabling more developers to support projects than could be afforded previously and helping to meet project goals, the Forrester study found.
“The Total Economic Impact study from Forrester validates that having rapid access to the right high-quality talent at the right time is not only cost efficient, but it is imperative to compete in today’s hyper competitive economy,” said Jeremy Johnson, Andela co-founder and CEO. “The world’s top customers trust us to help them hire with confidence and these results showcase why Andela is a trusted tech talent marketplace for enterprises.”
Top Benefits
Companies increasingly need external staff to support fast-moving technical projects, especially given exploding needs for AI-infused solutions. Forrester’s Technology and Business Services survey, 2023, found that business and technology decision makers expect to increase staffing from service providers by at least 40% this year. In the Andela TEI study, leading benefits experienced by surveyed companies as a result of using Andela included:
- 68% accelerated ramp up speed for projects
- 58% expanded project bandwidth across technical teams
- 55% experienced greater agility on projects
- 48% increased project completion speed
- 42% avoided wrong placements due to lack of skilled workers
- 32% improved project quality
With Andela, “we’re able to onboard somebody faster with the right skill set, and they’re able to ramp quickly and swiftly deliver results to get us over the finish line,” a vice president at a major software firm told Forrester.
The 2024 Forrester Consulting Total Economic Impact™ (TEI) study of Andela provides a cost-benefit analysis to determine the economic value Andela can have over three years. It included interviews and survey respondents from companies in the technology, advertising, healthcare and other industries. About three quarters of the companies were based in the U.S. Half had fewer than 1,000 employees. Prior to using Andela, the companies primarily used in-house hiring or third-party staffing agencies.
The study also noted unquantified benefits that added value, including:
- Greater ability to add or remove talent based on project needs, given the speed with which Andela meets talent requests.
- Broad diversity of talent supporting projects given Andela’s global reach.
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