Nearshoring vs. Offshoring: How Time Zone Overlap Impacts Global Hiring

Hiring internationally can cut costs and expand your talent pool, but not all global hiring models are created equal. One key difference? Time zones.

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Howdy.com
Hire the Top 1% of Developers in Latin America.

Hiring abroad? So are most growing teams today. Recent research finds that 86% of small and mid-sized businesses (SMBs) have hired international talent to reduce costs, while 58% have done so to address talent shortages in the US.

Expanding across borders opens up new talent markets — but it can also introduce logistical headaches. Chief among them: time zone mismatches that make real-time collaboration tough. That’s where nearshoring comes in.

Let’s break down the difference between offshoring and nearshoring — and how workday alignment plays a critical role in productivity and team cohesion.

What is offshoring?

Offshoring refers to hiring talent in countries that are geographically far from the US, often on the other side of the world. While these markets offer competitive pricing and large talent pools, they also bring steep time differences.

Common offshore locations for US companies:

  • India. Known for its deep tech expertise and large English-speaking workforce. The downside? A 9.5–12.5 hour time difference from the US, with little to no workday overlap.
  • Philippines. A popular destination for outsourcing tech and customer support. With a 12–15 hour time difference, most collaboration happens during off-hours.
  • Vietnam. An emerging tech hub in Southeast Asia, with affordable rates, and a 12–14 hour time difference.
  • Eastern Europe (Ukraine, Poland, Romania). These countries offer skilled developers and moderate pricing. With a 6–8 hour difference, there’s limited overlap with US business hours.

What is nearshoring?

Nearshoring means hiring from countries that are closer to the US, usually in Latin America. These locations offer similar cost benefits to offshoring, but with stronger alignment in both time zones and culture.

Top nearshore markets for US companies:

  • Mexico. Our closest neighbor and a top choice for nearshoring. Mexico shares time zones with much of the US and has a growing tech talent pipeline.
  • Colombia. A fast-growing tech hub with the same time zone as US Eastern Time.
  • Argentina. Known for its strong English proficiency and software engineering talent. One hour ahead of US Eastern time.
  • Brazil. The largest tech economy in LatAm. Most of the country is only 1–2 hours ahead of the US.
  • Chile, Peru, Uruguay. All offer minimal time differences (0–2 hours ahead) and solid developer talent.

Offshore vs. nearshore: A side-by-side look at time zone overlap

Here’s how common offshore and nearshore countries stack up for US-based companies on Eastern Time, using a standard 9–5 workday.


TL;DR: Offshore teams in Asia often operate while your team is asleep. Nearshore teams in LatAm share 85–100% of US work hours. Eastern Europe lands somewhere in the middle.

International workday overlap by US city

Let's get even more precise. Up next, we mapped the overlap in hours between a standard 9–5 workday in key international markets and four major US cities — New York, Chicago, Denver, and San Francisco — during US Daylight Saving Time (DST).

This chart illustrates the impact of location on collaboration. While Asian teams may overlap for an hour or less, Latin American teams often share 6–8 working hours with US counterparts.

Why time zone alignment matters

How nearshore countries align with US states

Time zone gaps may seem like a small detail, but they have a big impact on your team’s ability to move fast and work together.

Here’s how time zone misalignment affects productivity:

  • Delayed communication. Even a 1-hour loss of overlap can reduce synchronous communication by 11%, according to research.
  • Scheduling headaches. Offshore teams may need to work graveyard shifts. US-based managers may have to hop on 6 a.m. calls.
  • Slower turnaround times. Lack of real-time communication delays approvals, bug fixes, and critical feedback loops.
  • Burnout. Irregular hours and missed handoffs can frustrate teams and lead to burnout — on both sides of the globe.

Other benefits of nearshoring

Time zones are a major factor in global hiring, but they’re not the whole story. Here’s what else matters when comparing offshore and nearshore talent.

  • English fluency. Many LatAm countries rank highly in global English proficiency. Argentina and Chile lead the region.
  • Cultural compatibility. LatAm teammates often share US business norms — from communication style to working hours and holidays.
  • Proximity. Flights from Colombia or Mexico to the US are short and direct. No jet lag means in-person collaboration is easier when needed.
  • Legal ease. Many LatAm countries have trade agreements with the US (like USMCA), which make cross-border employment more straightforward and secure.

Want better alignment and faster results? Go nearshore with Howdy

Nearshore hiring gives you the best of both worlds: access to top global talent, with the working hour overlap that makes collaboration seamless.

At Howdy, we help US companies build high-performing remote teams in Latin America quickly and compliantly. We connect you with pre-vetted candidates who align with your time zone, culture, and company goals.

Ready to build a remote team that works when you do? Book a demo.