The Rise of Remote Work and Andela's Global Expansion

Over a year has passed since the onset of the pandemic, yet remote work continues to be a prominent feature of the employment landscape. Despite certain drawbacks, it remains a key consideration for prospective employees worldwide when evaluating new opportunities.

Although a majority of professionals in Africa still operate from traditional office settings, a growing number of companies are embracing remote work models. Andela, a New York-based startup specializing in building remote engineering teams from Africa, was among the first to publicly commit to a fully remote structure on the continent.

Expanding Engineering Talent Globally

Currently, Andela is reinforcing its commitment by announcing a worldwide expansion of its engineering talent network. The company has experienced a remarkable 750% surge in applications from outside of Africa over the last six months.

In March alone, over 30% of all inbound engineer applications originated from outside the continent. Latin America accounted for half of these applications, while Africa itself witnessed a 500% increase in submissions.

Andela's Evolution: From Hubs to a Global Network

When Andela was founded in 2014, its initial strategy involved establishing hubs in Nigeria, Kenya, Rwanda, and Uganda. These hubs were designed to identify, assess, and train engineers for integration into remote teams serving international companies.

The company also experimented with satellite models in Egypt and Ghana as alternatives to physical hubs.

Initially, Andela issued calls for applications, selecting a small percentage of candidates (less than 1%). These selected individuals received a salary for the first six months, along with provisions for housing and meals.

Furthermore, the company invested in enhancing developers’ skills through training and mentorship programs. To date, over 100,000 engineers have participated in Andela’s learning network and community, and by 2019, the company employed more than 1,500 engineers.

Adapting to a Sustainable Model

However, recognizing the unsustainability of its initial model, the company began implementing changes.

In September 2019, Andela released 420 junior engineers from its teams in Kenya, Uganda, and Nigeria. Nine months later, citing the impact of the pandemic, the company implemented further workforce reductions, laying off 135 employees and introducing salary cuts for senior staff.

Despite these layoffs, the pandemic provided clarity regarding Andela’s future operational direction – a fully remote approach, validated by the success of its satellite models.

The Shift to a Fully Remote Operation

“Initially, a developer needed to be based in Lagos to collaborate with Andela. This evolved to requiring residency in Nigeria, then Kenya, then Uganda, Rwanda,” explained CEO Jeremy Johnson to TechCrunch. “Prior to the pandemic, Andela was progressively opening applications on a country-by-country basis. The pandemic altered this trajectory, enabling us to extend opportunities across the entire continent.”

The decision to close its physical campuses and embrace a remote structure allowed the company to concentrate on attracting engineers with more extensive experience, aligning with the requirements of its clientele. This experiment, completed within a year, is integral to Andela’s ambition to become a global organization.

Johnson added, “The initial results were exceptionally positive, prompting us to consider accelerating the process now that we operate remotely and can accept applications from anywhere, as global expansion was always our objective. The timing, however, remained a question. We proceeded, and the outcome has been remarkably successful.”

Benefits of Global Expansion

With its global expansion, Andela’s clients can now leverage regional expertise to support their international growth initiatives.

According to a company statement, Andela currently employs engineers from 37 countries spanning Africa, Asia, Latin America, North America, and Europe.

Johnson refrained from disclosing specific details regarding the number of engineers currently placed in jobs through Andela or the company’s total developer count. His primary focus is on assisting clients in addressing diversity challenges that have historically affected many Western corporations.

Andela is presently collaborating with eight companies that have hired its engineers in Latin America and Africa. Beyond the diversity benefits, the CEO emphasizes that this allows Andela engineers to demonstrate their capabilities on a global stage, a goal the company has consistently pursued.

Serving a Diverse Clientele

Andela provides services to over 200 customers, including prominent organizations such as GitHub, ViacomCBS, Pluralsight, Seismic, Cloudflare, Coursera, and InVision.

GitHub is one company that is already benefiting from Andela’s expanded offerings. Dana Lawson, VP of Engineering at GitHub, stated, “As a company in the developer tool space, many of us are striving to enter emerging markets in Southeast Asia, Latin America, and Africa to better understand the needs of developers in those regions. Having a local presence with exceptional talent is incredibly valuable for building a global product.”

Competitive Landscape and Future Outlook

As Andela pursues its ambition to become a global company, it inevitably encounters competition. However, CEO Johnson believes the company’s vertical focus – specializing in digital product development – differentiates it from most competitors, which operate as horizontal marketplaces offering a broader range of expertise. This distinction positions Andela for potential acquisition.

“Our concentration on building digital products enables us to deliver more value to our customers. That’s where our focus lies – fostering long-term relationships and creating exceptional digital products,” the CEO explained.

The company was established by Jeremy Johnson, Christina Sass, Nadayar Enegesi, Ian Carnevale, Brice Nkengsa, and Iyinoluwa Aboyeji. It has secured over $180 million in funding (through Series D) from investors including Chan Zuckerberg Initiative, Generation Investment Management, Google Ventures, and Spark Capital, achieving a valuation of approximately $700 million.

During the announcement of last year’s layoffs, Andela reported an annual revenue run rate of $50 million. When questioned about any changes to this figure over the past year, Johnson stated that the company is “experiencing growth at a healthier rate than ever before.”

The future of remote work is inherently global, and Johnson believes Andela serves as a crucial link to talent regardless of location. Martin Chikilian, the company’s head of talent operations, echoed this sentiment regarding the expansion.

“We’ve observed exponential growth and interest from engineers across Africa who are eager to collaborate with some of the world’s most innovative technology companies,” he said. “Expanding our talent network from Africa to encompass additional markets presents a unique opportunity, and we remain committed to connecting talent with opportunities beyond geographical constraints.”