Nearshoring offers benefits like cultural similarities, shorter travel, and minimal time zone differences.
To reduce costs and tackle labor shortages, US companies are turning to nearshoring—outsourcing to Latin American businesses. With nearly 10 million job openings and fewer than 6 million unemployed workers, accessing skilled talent outside the US is crucial for growth. Nearshoring offers benefits like cultural similarities, shorter travel, and minimal time zone differences.
This article covers what nearshore outsourcing is, its pros and cons, and how to build a successful nearshore hiring strategy.
Nearshoring is outsourcing to nearby countries. For the US, this means hiring remote workers from Latin America, like Mexico or Costa Rica, instead of distant countries.
Mexico, Brazil, and Argentina are popular due to their skilled talent, lower labor costs, and focus on technology, making them ideal for finding developers and other professionals.
When it comes to outsourcing, companies have three key strategies to choose from: onshoring, offshoring, and nearshoring.
Onshoring involves hiring talent within the United States, ensuring that your workforce operates in the same geographical region. However, this option doesn’t always provide the same cost-saving benefits as the other strategies, as salaries in the US tend to be higher.
Offshoring, on the other hand, takes advantage of hiring talent from countries in distant time zones, often offering significant cost savings. However, this strategy can lead to challenges in communication, as well as potential cultural and time zone differences that may hinder collaboration.
Nearshoring strikes a balance between the two. By hiring talent from countries in closer time zones, you can achieve cost-efficiency while also maintaining better alignment in working hours and cultural understanding. Additionally, nearshoring can reduce travel costs and improve overall coordination.
Want to dive deeper into the pros and cons of these outsourcing strategies? Check out our full article: “Nearshoring vs. Offshoring vs. Onshoring: What’s the Difference?
Outsourcing involves hiring third-party providers for specific tasks, while nearshoring is a type of outsourcing that focuses on cost savings, access to larger talent pools, and specialized skills by hiring remote workers from nearby countries.
The key difference is that nearshoring promotes closer collaboration with your in-house team. To integrate nearshore workers effectively, include them in virtual meetings and communication channels for better teamwork and coordination.
Nearshore outsourcing offers several key advantages, including:
Cost Efficiency – Lower labor costs compared to domestic hiring, without sacrificing quality.
Reduction of Overhead Costs – Outsourcing to nearby countries can significantly reduce expenses related to office space, utilities, and employee benefits.
Time Zone Compatibility – Closer time zones enable real-time collaboration and faster response times.
Cultural Alignment – Similar cultural backgrounds and work ethics facilitate smoother communication and fewer misunderstandings.
Access to Top Talent – Nearshoring provides access to highly skilled professionals in nearby regions.
While nearshore outsourcing offers many benefits, there are potential challenges to consider, including:
Compliance – Hiring talent from countries like those in Latin America may require navigating different laws, labor codes, and regulations. Non-compliance can lead to fines, penalties, or legal disputes.
To mitigate these risks, it’s crucial to partner with an outsourcing provider who has the expertise to ensure adherence to all local regulations.
Nearshoring to Latin America has become a popular and smart choice for U.S. companies, especially in the tech and software industries. For instance, the World Bank reports:
“Mexico’s IT outsourcing industry is growing rapidly, with an annual growth rate of 10-15%, totaling about $46 billion in exports. It is now the third-largest global exporter of IT services.”
Countries like Mexico, Costa Rica, Argentina, and Brazil have become known for their skilled tech and IT professionals. But nearshoring isn’t just about hiring developers—it’s a flexible solution for many different roles.
Software development & IT
Finance & accounting
Customer support & call centers
Marketing
Design & product design
Sales & business development
Human resources
Data analytics
The great news is that Latin America has a large pool of talented professionals in these areas, and many leading U.S. companies have been successfully outsourcing to the region for years.
If you’re curious about which specific roles you can outsource and how it could benefit your business, check out our article for more insights.
Nearshoring isn’t just good for businesses—it also helps the U.S. economy. By accessing more affordable labor and services from nearby countries, companies can boost their profits and reinvest that money back into the U.S. This creates a cycle of economic growth, generating more jobs, stimulating business expansion, and supporting overall economic development.
Sometimes, U.S. companies struggle to find the skilled talent they need, and that can hold back growth. Take accounting, for example. With a shortage of accounting graduates in the U.S., many accounting firms—including the Big Four—rely on hiring abroad to fill positions. If companies can’t fill these roles, their operations and growth are impacted. Interestingly, by hiring talent from nearby countries, companies can save money and use those savings to hire more U.S.-based customer support staff.
Nearshoring also fosters global cooperation and understanding, helping improve professional and educational opportunities in nearby countries. As these regions grow economically and see higher living standards, it can reduce migration pressures and open new markets for U.S. products.
Nearshoring is a cost-effective way for U.S. companies to grow and stay competitive. By hiring from nearby countries like Mexico, Brazil, and Argentina, businesses can access top talent at lower costs, without losing out on communication or cultural fit.
At TalentCross, we make the hiring process easier. Share your job description with us, and we’ll provide a shortlist of ideal candidates—free of charge. We’ll even assist with onboarding and payroll once you hire.
Book a free consultation call today to see how we can help you hire top talent from Latin America.
What is Nearshoring?
Nearshoring means outsourcing your business tasks to nearby countries, like those in Latin America.
Powering Growth with World-Class Global Talent
We simplify the hiring journey by connecting you with exceptional professionals worldwide and providing full-spectrum support—empowering your team to scale faster and achieve lasting success.
The all-in-one platform to find, hire, onboard, reward, and keep top talent — anywhere in the world.
© 2025 TalentCross. All right reserved.
