For US companies, nearshore most often refers to hiring teams in Latin America (LATAM), where developers work in similar time zones and share some cultural overlap.
Nearshore means outsourcing business operations—usually software development or IT services—to a nearby country rather than a far-off location. For US companies, nearshore most often refers to hiring teams in Latin America (LATAM), where developers work in similar time zones and share some cultural overlap. This is different from “offshore,” which usually means working with teams in regions like India or Eastern Europe that have a much bigger time difference.
Key features of nearshore outsourcing:
Timezone alignment: Real-time or near real-time collaboration with your team.
Cultural similarity: Easier communication and understanding of business practices.
Cost savings: Rates are often 40–70% lower than US onshore, with less risk of project slowdowns due to miscommunication or delays.
Bilingual talent: Many LATAM developers are fluent in English and experienced working with US companies.
When to choose nearshore:
Nearshore is a strong fit if you want to avoid the headaches of offshore time differences but still want to access a large pool of skilled, cost-effective talent. This model is especially effective for agile development, fast releases, and companies scaling quickly. Partners like Torc.dev focus on vetting and managing nearshore teams so you get speed and quality with less risk.
Summary:
Nearshore means “close to home”—outsourcing to nearby countries for talent, cost savings, and easier collaboration. It’s the preferred option for many US companies that want the benefits of global talent without the downsides of offshore.