Nearshore development strikes a balance between cost savings and effective collaboration. Unlike offshore models—which can suffer from significant time zone differences, cultural barriers, and communication delays—nearshore teams (such as those in LATAM for U.S. clients) operate in similar time zones, making real-time collaboration and faster response times possible. Nearshore also tends to offer stronger cultural compatibility and higher retention rates than offshore, reducing turnover and ramp-up time. Compared to onshore hiring, nearshore delivers these benefits at a much lower cost—often 40–70% less—without sacrificing quality or productivity.