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More and more organisations are reconsidering the costs of traditional in-person exams and exploring online alternatives. Expenses such as test centres, proctors/invigilators, travel, and logistics can quickly add up. If you’re unsure about investing in an online exam platform, it’s essential to weigh the return on investment (ROI) against the rising costs of in-person testing.
This article examines the financial benefits of online exam platforms and why they offer a smarter, more cost-effective solution.
What is ROI (Return on Investment)?
Return on Investment (ROI) measures the financial gain from an investment relative to its cost. When it comes to online exam platforms, ROI is achieved through savings on venues, staffing, logistics, and candidate expenses, all while enhancing efficiency and scalability.
How to calculate ROI for online exams
Calculating ROI helps organisations determine the financial return on their investments. The general formula is:
ROI = (Income - Investment) / Investment x 100
- Income: The financial benefits or savings from an investment.
- Investment: The total amount spent on the solution.
This formula applies across industries and helps assess whether an investment is delivering value. For organisations considering online exams, ROI can be calculated by comparing the cost of in-person exams with the savings from switching to an online platform.
- Savings: Includes reduced venue, staffing, logistics, and candidate-related expenses.
- Investment Cost: The subscription or licensing fees for the online exam platform.
By analysing pre- and post-adoption costs, organisations can measure their exact financial gains and long-term benefits from using online exams.
The hidden costs of in-person exams
Many organisations assume that sticking with in-person testing, compared to an online exam software, is the cheaper option. However, when you factor in the expenses outlined below, that isn’t always the case.
1. Venue & infrastructure costs
- Test centre rental: £500–£3,000 per day ($600-$3,600)
- Utilities (electricity, internet, heating): £50–£300 per day ($60-$360)
- Exam equipment (computers, desks, chairs, printers, secure storage): £500–£1,500 per setup ($600-$1,800)
- Cleaning services (for regular exams): £50–£200 per session ($60-$240)
- CCTV installation (for high-stakes exams): £500–£5,000 one-time cost ($600-$6,000)
- Insurance & liability coverage for exam venues: £1,000–£5,000 per year ($1,200-$6,000)
Even for a small number of candidates, the venue cost remains largely the same as for larger groups. Whether you are accommodating 10 or 100 candidates, hiring a test centre involves fixed costs that do not decrease proportionally. As a result, in-person testing becomes disproportionately expensive for organisations administering smaller exams.
2. Staffing & administration costs
- Invigilators: £12–£25 per hour per invigilator ($14-$30)
- Admin staff: £15–£30 per hour ($18-$36)
- Security personnel (if required for high-stakes exams): £20–£50 per hour ($24-$60)
- Exam scheduling software: £500–£5,000 per year ($600-$6,000)
- Examiner marking fees: £10–£50 per paper-based exam ($12-$60)
- Shipping and storage of exam papers: £500–£2,000 per session (risk of paper leakage) ($600-$2,400)
- Time spent co-ordinating exam logistics: 10–50 hours per exam cycle
3. Candidate-related costs
- Travel expenses: £10–£100 per candidate ($12-$120)
- Accommodation for distant candidates: £50–£200 per night ($60-$240)
- Lost productivity (time off work to attend exams): £100+ per candidate ($120+)
- Accessibility challenges & additional accommodations: £500–£5,000 per session ($600-$6,000)
When you tally up these expenses, in-person exams can cost thousands per session and demand a significant investment of time and human resources. Now, let’s compare this to an online exam platform.
Maximising ROI with online exam platforms
Moving to an online exam platform eliminates many of the costs tied to traditional in-person testing. Without the need for physical venues, staffing, and infrastructure, organisations can save both time and money while simplifying the exam process.
Here’s how online exams help cut costs:
1. No venue or infrastructure costs
Online exam systems remove the need for physical test centres, saving thousands in rental and operational costs. Candidates can take exams remotely using their own devices, eliminating the need for costly exam equipment. High-stakes exams also benefit from **encrypted cloud storage,** reducing the risk of exam paper leaks and the need for expensive security measures.
2. Lower staffing requirements
With AI-powered proctoring and automated exam administration, you no longer need large teams of invigilators and admin staff. Many online assessment platforms use live, recorded, or AI-based monitoring, reducing staffing expenses significantly. Automated scheduling, grading and results further reduce the need for manual input and saving valuable time for staff.
3. Scalability & efficiency
An online exam platform lets you scale effortlessly. Whether you’re testing 10 or 10,000 students, there’s no need to book multiple venues or hire additional staff. Large-scale exams no longer require costly venues, and low-stakes assessments can be delivered efficiently without extra security or logistics expenses.
- One-off exams vs. recurring exams: In-person recurring exams require consistent venue rental, staffing, and cleaning services. Online exam platforms allow for automated scheduling and re-use of question banks.
- Small-scale vs. large-scale exams: Large, in-person exams require multiple test centres and extensive coordination. Online exams can accommodate thousands of candidates simultaneously with minimal additional cost.Even for small-scale exams, in-person testing requires fixed costs for venue hire, making them disproportionately expensive compared to an online platform where costs are scalable.
- Low-stakes vs. high-stakes exams: High-stakes exams require extra security, and storage for exam papers. Online platforms provide secure browser environments, AI proctoring, and multi-factor authentication for a fraction of the cost.
In-person testing also comes with additional logistical challenges, including the mass printing of exam papers, mailing them (often requiring tracking), and then collecting completed papers, which need to be either posted back or scanned. This process is not only time-consuming and costly but also carries the risk of papers being lost in transit.
It is not uncommon for organisations to experience these issues: “Our in-person testing process requires us to send printed exam papers in the post internationally, which is expensive. We’re looking for a more cost-effective process with delivering these exams online.”
4. Enhanced security & compliance
Online features such as ID verification and multi-factor authentication ensure that the right candidate is taking the test, while digital audit trails provide verifiable records that improve compliance and reduce disputes.
Online exam platforms also reduce the risk of exam content being leaked by disabling copying and pasting, restricting downloads, and allowing educators to control access through permission settings. Unlike paper-based exams, where lost papers are a common issue, digital exams remain securely stored and accessible, eliminating the risk of misplaced or tampered documents.
An organisation looking to make the switch said “We experienced major security issues when our test papers went missing and it meant we had to create new questions from scratch for the next exam, which was stressful and time consuming. We’re wanting an online exam platform for the advanced security features it offers.”
The time-saving benefits of online exam platforms
The value of time becomes necessary for calculating ROI,(1). When considering online exams, time is one of the most overlooked but critical factors when assessing return on investment.
Traditional in-person exams require extensive administrative hours for scheduling, coordinating venues, hiring invigilators, and handling logistics. Candidates also spend time travelling, which can lead to lost productivity.
In contrast, online exam platforms streamline these processes, yielding substantial time savings. Here are some key benefits:
1. Reduced administrative burden
With an online exam platform, scheduling, proctoring, and grading can be automated. Instead of spending dozens of hours per exam cycle, administrators can set up and manage exams with just a few clicks, freeing up time for other tasks.
2. Faster exam delivery & results processing
Paper-based exams require manual grading, scanning, and distribution of results, often taking weeks. Online exams allow for instant or streamlined grading, significantly reducing the turnaround time and enabling organisations to provide candidates with results faster.
3. Eliminating candidate travel time
Candidates taking exams in-person must commute, sometimes over long distances. Online exams remove the need for travel, giving candidates back hours that would otherwise be spent on the road. This is especially valuable for professionals balancing work and study commitments.
4. Time saved on security & compliance
In-person exams require physical security measures, such as CCTV monitoring and exam paper storage. Online platforms use multi-factor authentication, AI proctoring, and encrypted digital records, reducing the need for manual oversight and speeding up compliance processes.
By streamlining exam administration and removing logistical bottlenecks, online exam platforms save hundreds of hours annually, allowing organisations to reallocate time and resources to more valuable activities.
The financial & time savings impact: A real-world example
Let’s assume an organisation runs 1,000 in-person exams annually:
- Test centre rental: £100,000 ($120,000)
- Staffing (invigilators, admin, security): £50,000 ($60,000)
- Candidate travel & accommodation: £75,000 ($90,000)
- Logistics & exam marking: £30,000 ($36,000)
- Cleaning services (for regular exams): £10,000 ($12,000)
- Exam paper storage (for high-stakes exams): £5,000 ($6,000)
- Admin time spent scheduling & coordinating exams: 1,500 hours annually
Total Annual Cost: £270,000 ($324,000) + 1,500 admin hours
Now, compare that to an online exam platform subscription at £50,000–£100,000 ($60,000 -$120,000) per year, which includes automated proctoring, scheduling, and grading.
Cost & time per exam attempt
- In-Person Exam: £270 ($324) per candidate + admin time
- Online Exam: £50–£100 ($60 - $120) per candidate + minimal admin intervention
That’s a potential saving of over 50% in costs and 80% in administrative time annually.
Conclusion
Online exam platforms provide a cost-effective, scalable, and secure solution compared to traditional in-person exams. By eliminating venue costs, reducing staffing requirements, and streamlining exam administration, organisations can save thousands while improving efficiency and accessibility. The added benefits of time savings, enhanced security, and improved candidate experience make online exam platforms a clear choice for organisations looking to maximise ROI.
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Discover how Synap can help save you time and money while maintaining integrity and efficiency for your online exams. Get in touch today for a tailored demo and 14 day free trial.
References
(1) Gainsight (2025) ‘How to prove the ROI of your online training program’, Gainsight Blog. Available at: https://www.gainsight.com/blog/how-to-prove-the-roi-of-your-online-training-program/