As a company that has significantly altered perceptions of Africa’s potential in the digital economy, Andela often finds itself under the spotlight.
There’s a debate about whether the company has reached its peak in terms of excitement and innovation, especially considering the internal changes over the past year. A recent report by a US journalist reveals that some past and present staff may feel disillusioned due to the company’s redefined purpose.
Omowale David-Ashiru, Andela’s VP for Global Operations, acknowledges the perception that Andela has evolved since its founding in 2014. However, she assures that the core mission remains intact.
“The problem we are trying to solve hasn’t changed,” she says.
David-Ashiru explains that Andela was established to address the demand for software engineering talent in developed North American tech economies. These needs still exist in 2020, and the company has merely adjusted its strategy to fulfill this founding goal.
“As a business, your path to your North Star will always change. Even as an individual, if you haven’t evolved in five years, then you haven’t grown,” she says.
Andela’s latest change, announced last week, involves opening its application portal to software developers from all African countries. The company went fully remote in May, closing its physical offices in Lagos, Kampala, Kigali, and Nairobi.
These decisions were not sudden reactions to the coronavirus pandemic. Andela has operated as a predominantly remote-work company since 2014. These were significant adjustments that started in early 2019, following a $100 million Series D funding round.
“You start a business to meet your customers’ needs. As a responsible business, you must always listen to your customers,” David-Ashiru says.
In Andela’s case, the demand for remote and distributed junior software engineers had decreased among their clients. The rise of more software training institutions and bootcamps worldwide has led to a surplus of junior talent and increased demand for senior-level talent.
Although Andela is driven by a social mission, it also operates as a for-profit business accountable to its investors. Investing $20,000 in training a developer without generating revenue from them would not be sustainable.
These concerns are also tied to Andela’s status as a venture-backed company. After laying off 135 developers in May, CEO Jeremy Johnson emphasized the need for fiscal prudence to remain a fundable business.
“At the end of the day, VCs invest in you because you promise to deliver something for customers and make money,” David-Ashiru says.
Under its new structure, Andela aims to achieve better product-market fit by iterating based on customer demands. Like any other business, they are working on producing the best quality possible.
To maintain its reputation for quality, Andela’s process for onboarding new talent will adhere to existing standards. David-Ashiru strongly refutes the notion that Andela is a “plantation” that exploits productivity without fair compensation.
With a background as a strategist at management consulting firm Accenture, David-Ashiru is experienced in guiding companies through crises. Before joining Andela, she ran her startup – a retail store for maternity services – for eight years.
In times of crisis, businesses must focus on essential operations and eliminate unnecessary perks, she says. To survive, companies must take bold steps and commit to challenging tasks.
Paying close attention to cash flow, capital, costs, and customers is crucial, especially during periods of economic shocks like the current pandemic.
Despite concerns for survival, David-Ashiru advises against panic, as uncertainty is always a part of a company’s journey. For Andela, the future involves ensuring value creation for customers and a productive environment for developers.
