Over the past decade, US tech companies have experimented with every global hiring model available — onshore, offshore, and nearshore. But in 2025, the data is clear: nearshore hiring delivers faster results, lower turnover, and stronger team collaboration than offshore models ever could.
This article breaks down why that shift happened, using verified Howdy hiring data and insights from high-performing engineering teams across Latin America.
The nearshore advantage has shifted from cost to collaboration
In contrast, nearshore hiring in Latin America now combines cost efficiency with operational alignment. Engineers in Mexico, Brazil, and Colombia share overlapping hours, cultural fluency, and professional standards with US-based teams.
Faster velocity through real-time collaboration
With nearshore engineers working within two to three hours of US headquarters, teams no longer wait overnight for code reviews or project updates. Feedback loops are immediate, standups are synchronous, and blockers are resolved in real time.
Companies using nearshore models report up to 30% faster sprint throughput, driven by shared schedules and continuous communication.
Cultural fit creates lasting productivity
Offshore work often introduces friction around communication norms and expectations. Nearshore engineers, however, operate within similar business cultures — prioritizing ownership, transparency, and collaborative problem-solving.
That alignment translates directly into productivity. Teams that “speak the same language” — literally and professionally — deliver higher-quality output with less back-and-forth.
Retention: the ultimate performance multiplier
Velocity depends on continuity. Every time a developer leaves, productivity resets. Offshore teams have historically struggled with churn due to contractor-style relationships and limited engagement.
Howdy’s nearshore model shows a different pattern: engineers stay an average of 2+ years, maintaining institutional knowledge and code consistency. That retention drives both speed and stability — two metrics that matter most to scaling startups.
Beyond outsourcing: building integrated teams
Offshore models often feel transactional — teams work in isolation, handing off deliverables rather than collaborating. Nearshore hiring flips that dynamic by creating fully integrated teams who attend standups, review design decisions, and align with product roadmaps in real time.
It’s the difference between outsourcing tasks and building culture.
The numbers behind the shift
Howdy hiring data (2025) indicates measurable advantages for nearshore over offshore models:
- 30% faster average sprint velocity
- 40–50% lower cost compared to US market rates
- Up to 2× higher retention
- Fewer compliance incidents, thanks to Employer of Record frameworks across LatAm
Conclusion
The nearshore vs offshore conversation isn’t just about geography anymore — it’s about outcomes. Nearshore models have become the standard for teams that need speed, cultural alignment, and sustainable growth.
Howdy.com helps US companies hire vetted engineers across Latin America with full compliance, retention support, and seamless onboarding.
Ready to see how nearshore hiring can accelerate your team’s delivery? Book a demo to learn more.