Tech outsourcing is still booming. What started as a response to pandemic-driven uncertainty has become a long-term strategy. Projections show global IT outsourcing revenue will increase by 50% between 2024 and 2029, proving this model is anything but temporary.
For companies in the U.S. and Canada, nearshore outsourcing is emerging as a long-term business enabler: one that offers cost efficiency without compromising collaboration. In this guide we’ll cover everything you need to know about nearshore outsourcing, what it implies at its core, benefits, best use cases and a list of providers.
Nearshore outsourcing refers to hiring tech talent in neighboring or nearby countries that share similar time zones. For example, U.S.-based companies often build nearshore software development teams in Latin American countries like Argentina, Brazil, Colombia, Mexico, or Costa Rica—where developers work 1–3 hours apart from U.S. teams, allowing for seamless real-time collaboration.
Unlike offshore outsourcing (e.g., India, Philippines), nearshore IT outsourcing minimizes time zone friction, accelerates feedback cycles, and enhances communication due to greater cultural and linguistic alignment. It’s an especially powerful model for agile software development, where daily standups, mid-sprint pivots, and asynchronous handoffs need tight coordination.
Popular use cases for nearshore outsourcing include:
It’s not just about cutting costs—it’s about gaining access to top-tier talent without sacrificing collaboration, quality, or control.
The normalization of remote work has only increased the relevance of nearshore software outsourcing. With the global demand for engineers at an all-time high, nearshore talent offers scalability without the drawbacks of extreme time zone differences or cultural gaps.
According to Gartner, 74% of companies are planning to shift more of their offshore workforce to nearshore or onshore models in 2025 to reduce risk and improve communication. Hiring in Latin America surged post-pandemic—remote contracts between U.S. companies and South American devs jumped by 70% between 2021 and 2022 alone.
Nearshore IT outsourcing has become the go-to model for distributed collaboration: it offers a stable, agile, and scalable alternative to both fully local hiring and far-flung offshore models.
Here’s why more companies are embracing nearshore outsourcing services in 2025:
Nearshore outsourcing is increasingly favored by technology-driven companies looking to scale strategically and responsively. Here are the most effective ways organizations leverage nearshore partnerships:
Choosing the right outsourcing model depends on your goals, resources, and team dynamics. While both nearshore and offshore models provide access to global talent, they differ significantly in how they impact collaboration, project speed, and overall efficiency.
Here’s a quick side-by-side view:
Factor | Nearshore Outsourcing | Offshore Outsourcing |
---|---|---|
Time zones | 1–3 hour difference from U.S. | 5–12 hour difference; async only |
Cultural fit | High – shared work values & communication styles | Low – higher chance of misalignment |
English proficiency | Medium to high (LATAM) | Variable – often lower |
Cost | ~30–40% savings over U.S. rates | Lower rates, but with added collaboration costs |
Collaboration | Real-time, easy integration | Delayed feedback, more management required |
Quality | On par with U.S./Europe | Varies greatly by region |
Nearshore outsourcing is ideal when real-time collaboration, agile execution, and team alignment are top priorities. With teams operating in similar time zones and sharing business culture and communication styles, it’s easier to sync across daily workflows, and maintain quality.
On the other hand, offshore outsourcing may offer the lowest hourly rates, but often requires more structured processes to manage time zone differences, potential miscommunications, and quality assurance. It’s best suited for companies with mature outsourcing practices and the resources to invest in oversight.
AI-powered recruiting is revolutionizing how companies identify and attract nearshore talent.
AI Agents can take care of:
However, ethical and regulatory concerns persist, such as:
This is why most successful nearshore outsourcing companies combine AI recruiting tools with human vetting. This is also known as a hybrid AI + human model: audit systems regularly to ensure equitable outcomes, embed human reviews in final decisions, and publicly disclose AI involvement in hiring processes.
Hiring across borders isn’t just about finding a good developer. It’s about navigating legal frameworks, building team culture, and delivering fast results. That’s why working with specialized nearshore outsourcing companies offers key advantages:
The nearshore outsourcing landscape in Latin America has matured significantly, and 2025 sees a strong field of providers offering tailored solutions for U.S.-based tech companies. Several firms stand out for their ability to match top engineering talent with the needs of growing development teams.
Unlike traditional vendors focused on short-term contracts, [BEON.tech](http://BEON.techhttps://beon.tech/companies) takes a long-term, partnership-oriented approach that prioritizes team stability, talent quality, and cultural fit. The company is known for its developer-first philosophy. By offering competitive salaries, compelling benefits, and clearly defined career paths, BEON.tech attracts and retains top-tier engineers across the region.
One of the core strengths of BEON.tech lies in:
BEON.tech also places strong emphasis on compliance and best practices, providing its teams with training in standards like HIPAA, ensuring that developers meet the regulatory and security requirements of U.S. clients.
This high-touch model has earned BEON.tech the trust of some of the most innovative and high-growth companies in the U.S., including Nasdaq, Autofi, Acoustic, SimplePractice, Evisort, Kin, Kiavi, and Teamworks, among others.
For tech leaders seeking a nearshore partner that combines deep technical expertise, cultural alignment, and long-term team value, BEON.tech offers a highly differentiated and strategic solution.
Revelo offers access to Latin America’s largest nearshore talent pool—400,000+ vetted software engineers across 12 countries, including Brazil, Mexico, Argentina, Colombia, and Peru. Their platform enables U.S. companies to quickly shortlist developers skilled in full-stack, QA, AI/ML, and cloud roles. Revelo highlights include:
Revelo excels for rapidly building diverse, timezone-aligned engineering teams across Latin America, with a seamless administrative experience.
Turing positions itself as a “talent cloud” powered by AI, with over 3 million registered developers worldwide. Their vetting process is intensive:
The result is a globally-curated talent pool of engineers who are self-driven, technically proficient, and ready for long-term contracts. Turing’s toolset includes developer profiles and virtual machines, enabling rapid vetting and secure onboarding. This model suits businesses needing scale and technical depth, though timezone alignment may vary due to its global reach.
Terminal emphasizes fully managed, culture-aligned engineering teams across Latin America, Canada, and Europe. For LATAM specifically:
Terminal’s model is ideal for companies wanting to build integrated, long-term squads without the overhead of global expansion logistics.
Feature | BEON.tech | Revelo | Turing | Terminal |
---|---|---|---|---|
Scope | Latin America (23 countries), focused on tech roles | LATAM-wide, 400,000+ engineers | Global, 3+ million developers | LATAM & select regions, full-team build-outs |
Vetting rigor | AI + psychometric + technical evaluation for top-tier candidates | Accepts only top 2% based on technical, communication skills | Multi-step AI/technical vetting by ex-Google/Stanford teams | Expert-reviewed top 7% |
Time-to-hire | Spin up teams rapidly with 1:3 success ratio in short time | ~14 days average from posting to hire | Automated AI matching, varies by role | Up to 35% faster than market average (risk-free trial available) |
Timezone alignment | Full U.S. timezone alignment across LATAM | Strong overlap (~1–3 h) across LATAM countries | Varies globally; timezone match required at the start | LATAM-synced teams with U.S.business hours |
Service model | Full staff augmentation, hire-to-onboard billing only | Platform-driven payroll, benefits, compliance included | AI-driven matching with productivity tracking and contract management | Employer-of-Record model with HR infrastructure, payroll & benefits |
Retention & culture | Dev-first culture, career growth, perks, and mental health support.*It also offers direct hiring, in case you want to handle all that on your side. | Standard benefits; retention depends on employer policies | Varies by provider/role; mostly remote-first mindset | Strong culture fit and team cohesion built through onboarding |
Before committing to a nearshore model, it’s essential to weigh both the strategic gains and potential trade-offs.
Nearshore outsourcing delivers a compelling combination of cost efficiency, faster time-to-market, agile alignment, and access to high-quality talent. It bridges the gap between in-house and offshore teams—reducing overhead while boosting capabilities. Organizations harness nearshore teams for innovation, support, and scalability, with many providers acting as extensions of leadership—not just hired hands.
A successful nearshore relationship starts before contracting. Here’s what to review early on:
Build in-house if your project requires deep IP control, highly sensitive data handling, or headcount for long-term operations in multiple regions.
Outsource nearshore when you need rapid scaling, flexible engagement (especially for projects like MVP launches), cost predictability, and seamless agile collaboration with skilled talent aligned on both cultural and timezone fronts.
Far from being just a temporary cost lever, nearshore becomes a strategic growth engine when thoughtfully executed. Providers who invest in talent development, retention, and upskilling help clients build institutional knowledge and sustained engineering excellence. This approach ensures you not only scale confidently today but maintain momentum into tomorrow—supporting innovation pipelines and business resilience.
Curious if nearshore outsourcing aligns with your long-term growth strategy? At BEON.tech, we do more than simply connect U.S. businesses with software developers—we forge enduring partnerships built to fuel innovation. What truly differentiates us is our unwavering commitment to excellence.
Talk to a BEON.tech expert to explore tailored partnerships powered by high-caliber Latin American talent. Whether you’re building out AI teams, expanding software engineering functions, scaling DevOps, or enhancing QA capabilities—BEON.tech can help.
Damian is a passionate Computer Science Major who has worked on the development of state-of-the-art technology throughout his whole life. In 2018, Damian founded BEON.tech in partnership with Michel Cohen to provide elite Latin American talent to US businesses exclusively.
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