Executive summary
Austin CTOs are moving away from offshore engineering as time-zone gaps, overnight delays, and cultural disconnects slow teams down. Nearshoring to Latin America delivers what offshore can’t: real-time collaboration, product-minded engineers who work Austin hours, and stronger cultural alignment. This guide explains why nearshore talent is becoming the default choice for Austin engineering leaders, and how Austin companies like OJO, Prism, and Workrise are scaling high-performing teams with Howdy.
Table of contents
- The 3 a.m. problem
- You need product engineers (and not task executors)
- Compliance is strategic
- Why Austin CTOs choose Howdy
- Case studies: OJO, Prism, and Workrise
- FAQs
- Book a demo
If you’re an engineering leader in Austin right now, you’re living in a paradox.
Austin's tech scene is buzzing — from Capital Factory’s startup circles to Founders League pickleball on weekend mornings — yet senior engineering talent is harder to land than ever. In addition to competing with local startups, you're up against Tesla, Apple, Google, and Oracle for the same small pool.
That’s why many Austin CTOs are expanding beyond the local market. However, engineering leaders who have managed teams in Asia or Eastern Europe know that "global" can quickly turn into "slow" or "disconnected."
Here’s what Austin engineering leaders need to know about building distributed teams in 2025, and why nearshoring to Latin America has emerged as the new local strategy.
The 3 a.m. problem
Offshore teams create slow, overnight feedback loops. Nearshore teams eliminate this by working in Austin’s time zone, enabling real-time communication, quicker decision-making, and stronger product collaboration.
Traditional offshore models rely on time-zone gaps. Austin engineers log off; their offshore counterparts log on. In theory, this "follow-the-sun" model creates constant progress. In reality, it often slows everything down.
A missing product requirement becomes a full-day delay. A PR sits untouched for 12 hours. Bugs linger until morning. Architecture questions lose context across time zones. Teams lose momentum.
Austin’s engineering culture is built on real-time iteration. When teams can’t ask questions, jump on a call, or troubleshoot together, velocity drops.
Nearshore engineering changes the rhythm. LatAm teams work within one or two hours of CST, giving Austin engineering leaders:
- Real-time standups that feel like conversations for Austin teams
- Live debugging and architecture discussions
- Faster decision cycles across Austin product and engineering groups
- Slack responses in seconds
- Fewer blockers and fewer handoffs
For teams that value speed, alignment, and collaboration, time-zone overlap is critical.
Key takeaways
- Offshore = slow feedback cycles and lost velocity.
- Nearshore = real-time collaboration and fewer blockers.
- Austin engineering culture needs shared working hours to thrive.
You need product engineers (and not task executors)
Summary
Austin CTOs need partners who think in terms of product outcomes. Traditional outsourcing produces task executors, while nearshore talent delivers ownership, collaboration, and proactive problem-solving.
Austin engineering teams value autonomy and decision-making. The city’s startups expect engineers to challenge assumptions, weigh tradeoffs, and propose better solutions, rather than simply pushing tickets from backlog to done.
Offshore outsourcing was never built for this. The offshore model produces:
- Output without understanding
- Execution without contextSilence where constructive pushback should exist
Nearshore engineers — especially when carefully sourced — align more naturally with Austin’s expectations. LatAm engineers are accustomed to:
- Direct communication
- Cross-functional collaboration
- Fast-moving team environments
- Active participation in decision-making
When onboarded as full teammates, not contractors, these engineers contribute meaningfully to:
- Product architecture
- Early-stage technical decisions
- Backlog refinement
- Cross-team initiatives
- Platform improvements
The result: Austin-caliber ownership, without the offshore tradeoffs.
Key takeaways
- Austin startups need engineers who bring ownership and initiative.
- Traditional offshore structures discourage product thinking.
- Nearshore teams bring cultural alignment and product mindset.
Compliance is strategic
Summary
Global hiring now requires careful compliance management. Nearshore hiring through an Employer of Record (EOR) protects IP, reduces legal exposure, and ensures tax and employment compliance in each country.
Because LatAm labor laws have tightened, hiring contractors abroad can expose companies to misclassification penalties, payroll violations, or IP risks. For Austin startups planning SOC 2, ISO, or enterprise-grade compliance, global hiring must align with:
- Security standards
- Vendor management requirements
- Legal frameworks
- Tax and payroll regulations
This is why EOR partners have become integral to global hiring strategies. An Employer of Record handles:
- Employment contracts
- Local taxes
- Benefits and PTO
- IP assignment
- Compliance with labor law
- Offboarding and severance
But engineering leaders need a partner that combines compliance with high-quality sourcing, engineering rigor, and long-term retention.
Key takeaways
- Misclassification risks are increasing globally.
- EORs handle compliance, taxes, and employment law.
- Engineering orgs prefer partners that combine compliance with high-quality talent.
Why Austin CTOs choose Howdy
Austin engineering teams expect speed, ownership, technical excellence, and cultural fit. Howdy meets these expectations by combining:
- Austin headquarters and local presence
- LatAm sourcing and vetting
- Engineering-focused evaluation
- High-touch support for both partners and engineers
- A physical footprint in major LatAm cities through Howdy Houses
This local-global hybrid model feels native to Austin engineering culture. Read on to learn how three Austin companies used Howdy to build nearshore teams that operate with local-level collaboration and long-term stability.
Case studies: How Austin companies are using nearshore teams today
Below are examples of three Austin companies that have built high-performing engineering teams with Howdy.
OJO: Turning remote skepticism into real collaboration
OJO, an Austin real estate tech company, wanted to expand its engineering team but was hesitant about remote devs after previous experiences that felt transactional.
Howdy addressed those concerns by sourcing engineers who fit OJO’s culture and communication style. The engineers integrated quickly and contributed beyond expectations.
What improved:
- Full participation in planning and architecture sessions
- Real-time collaboration with Austin peers
- Initial skepticism replaced with trust and enthusiasm
- Increased ownership and ideation from Howdy engineers
- Structured mentorship and support from Howdy
"OJO and Howdy engineers work seamlessly as a team, integrating and collaborating effectively." — Qingqing Ouyang, CTO, OJO
Prism: From contractors to true teammates
Prism.fm needed engineers who could contribute to product decisions. Contractors weren’t providing the ownership or integration the team needed.
Howdy delivered engineers who jumped into the codebase, contributed to architectural conversations, and fully joined the team’s culture.
What improved:
- Six engineers onboarded quickly
- Strong participation in product discussions
- Willingness to suggest improvements
- Two team members traveled to Austin for the company summit
- High retention and long-term continuity
"With Howdy, our engineers have become true team members, contributing ideas and collaborating just like full-time staff." — Luke Zilioli, Lead Engineer, Prism.fm
Workrise: Scaling a stable, high-impact engineering org
Workrise needed to scale engineering fast while keeping quality high. After trying multiple hiring partners, they found Howdy delivered stronger candidates with faster turnaround.
Over four years, they built a 17-person engineering team through Howdy with exceptionally low churn and strong cross-team collaboration.
What improved:
- Faster hiring pipeline than any other partner
- Stronger talent quality
- Cross-team coordination strengthened
- Consistent communication patterns
- Lowest churn of any contract model they’d used
"Howdy engineers join us and feel like an extension of the team." — James Gorman, Senior Director of Data & Analytics, Workrise
FAQs
What is nearshoring?
How is nearshoring different from traditional outsourcing?
Why is LatAm a popular region for Austin engineering teams?
LatAm offers real-time collaboration, strong technical talent, and cultural alignment that fits Austin’s fast-paced engineering culture. Engineers work Austin hours, communicate clearly, and bring experience with modern stacks. This makes integration seamless and velocity higher than traditional offshore models.
How does Howdy vet engineers?
Howdy uses a multi-step vetting process designed for product-focused engineering teams. Engineers complete real-world technical assessments and interviews designed for startup-style work. Only candidates who show strong ownership and clear communication move forward.
Is nearshore talent as strong as US talent?
Is Howdy only an EOR?
Howdy is an EOR, but goes far beyond standard compliance and payroll services. In addition to handling employment, taxes, and benefits, Howdy sources, vets, onboards, and supports top engineers across LatAm. The result is an end-to-end talent partnership rather than a basic EOR platform.
Book a demo with Howdy.com
Want to see how nearshore engineering actually works? Stop by the Howdy House on East Cesar Chavez or book a demo today.