Austin, Texas, is one of the nation's fastest-growing cities. The town's expanding economy, tech talent, and proximity to Latin America have positioned it at the center of the nearshoring movement. Today, the city serves as a launchpad for US companies building compliant, distributed teams that collaborate across borders in real time.
Austin’s tech ecosystem: Why the city is becoming a nearshoring hub
Austin’s tech sector by the numbers
- +39% IT workforce growth (2017–2022)
- 66 HQ relocations (2018–2023)
- 22,000 new tech jobs vs. 14,000 local grads
Over the past few years, Austin’s tech sector has exploded. From 2017 to 2022, the region’s IT workforce grew by 39%, adding around 27,000 jobs and making the city one of the fastest-growing North American tech hubs. 66 companies moved their headquarters to Austin between 2018 and 2023, more than any other metro area.
This growth has created both opportunity and pressure. Austin added 22,000 new tech jobs between 2017 and 2021, but local universities produced just over 14,000 tech graduates during that same period. The result: companies are used to looking beyond city limits for great talent. For Austin firms, nearshoring to Latin America is a logical next step in that strategy.
With its thriving startup scene, pro-business environment, and expertise in managing distributed teams, Austin is positioned to lead the nearshoring movement.
Why Austin’s Central Time Zone gives US teams an edge
Austin’s location in Central Time is one of its biggest advantages. The city overlaps almost entirely with key Latin American tech hubs like Mexico City, Guadalajara, Bogotá, Medellín, and Buenos Aires.
Compare that to offshore destinations in Asia, where time differences can stretch 10 to 13 hours. Those long gaps slow feedback loops and delay decisions.
The chart below shows typical working-hour overlaps during standard time.
Time-zone overlap between Austin and global tech hubs
Travel is another plus. Austin’s international airport connects directly to major Latin American cities, making in-person visits simple.
How Austin’s cultural and business ties align with Latin America
Austin’s connection to Latin America runs deep. More than 40% of Texas’s population is Hispanic, and Spanish is widely spoken. That cultural overlap means Austin-based teams and Latin American engineers share similar communication styles, business practices, and holidays.
Most nearshore engineers are fluent in English and experienced in US work environments. LatAm devs are used to agile processes, open communication, and cross-border collaboration.
Why US-based nearshore providers offer added confidence
Working with a nearshore vendor headquartered in the US provides tech leaders with an extra layer of confidence. Contracts are governed by US law, intellectual property is protected under familiar legal frameworks, and business practices align with domestic expectations. Many US-based nearshore firms carry errors and omissions insurance and adhere to stringent data security standards.
At Howdy.com, we’ve seen how combining Austin’s innovation with Latin America’s top 1% of engineers drives results. We connect US companies with nearshore talent that’s fluent in English, aligned by time zone, and culturally compatible. Our people-first model — with full-time roles, local support, and great benefits — has helped us achieve a 98% retention rate.
For our clients, this translates to stable, long-term partnerships with engineers who feel like part of their in-house team.
Key takeaways
Austin’s rise as a tech powerhouse makes it the ideal hub for nearshoring. Its geographic advantage, cultural alignment, and thriving ecosystem create a unique bridge between the US and Latin America.
For tech leaders, “The Austin Advantage” means you don’t have to choose between cost, quality, or collaboration — you can have all three.
Ready to build your nearshore team? Book a demo at howdy.com/book-a-demo.
FAQs about nearshoring from Austin
What is nearshoring?
Nearshoring means partnering with teams in nearby countries — in this case, across Latin America — instead of hiring offshore talent from distant time zones. This outsourcing model offers real-time collaboration, cultural alignment, and cost efficiency.
Why is Austin ideal for nearshoring tech talent?
Austin is ideal for nearshoring tech talent because it combines a strong local innovation ecosystem, Central Time Zone overlap with Latin America, and easy access to global markets.
How does nearshoring differ from offshoring?
Offshoring typically involves large time-zone gaps that slow communication and project delivery. Nearshoring keeps teams in sync throughout the workday, reducing friction and improving speed, quality, and collaboration.