Andela is letting go of up to 400 developers

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When Andela, the software developer training and outsourcing company, first launched in Lagos five years ago, its business model was simple: train local entry-level developers to be globally competitive, place them on four-year contracts and earn revenue by outsourcing their skills to clients, mainly in the US, in that time frame.

But the company is now is making a major tweak to its business model and will end its developer training programs in Nigeria, Kenya and Uganda—three of its four African campuses. By extension, Andela is also letting go of over 250 of its contracted junior developers in Lagos and Uganda while up to 170 trainees in Kenya could also be “potentially impacted,” the company says.

The junior developer training program will continue in Rwanda where the cost has essentially been subsidized by the government. It will also remain open to applicants outside Rwanda.

The overall change of tack is down to the saturated market for skilled junior developers in the US, Andela’s most important market, says Seni Sulyman, Andela’s vice president for global operations. “Over the past five years, there has been a massive wave of boot camps and programming classes of different kinds like Lambda and Flatiron schools. Computer science schools in universities have also ramped up their programs. What that has done is create a massive flux of junior engineers in the US…which is our primary market,” he tells Quartz.

The release of 400 developers may be welcome in Africa’s most active tech hubs, such as Nigeria and Kenya, where rapid startup formation and funding is starting to outpace software engineering talent  — according to a number of founders.

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Job-placement will partially depend on whether local tech companies can offer competitive packages to incentivize the Andela alums.

If they do, the net effect of Andela’s layoffs could be more software-engineering capacity for Africa’s tech ecosystem ― so long as most of the developers remain in Africa.