As demand for faster innovation and cost-effective scalability intensifies, companies are increasingly turning to global talent strategies like nearshore and offshore partnerships. But beyond the broad trend, what’s really happening on the ground?

Here’s a look at how nearshore and offshore models are evolving—including which industries are leading the charge, the roles that are proving most effective, and what The Doyle Group is seeing firsthand in client conversations and talent engagements. Whether you’re refining your workforce strategy or exploring global hiring for the first time, these insights can help you navigate this evolving landscape with confidence.

The Rise of Nearshore and Offshore Talent Models

Outsourcing has been a fixture in the technology world for decades, but recent trends are pushing companies to rethink where and how they build distributed teams. There are several reasons for this shift, including the following factors:

• Cost reduction: 63% of companies outsource primarily for cost reduction.
• Focus on core functions: 65% seek to build an outsourced team that can bolster and streamline their core business functions.
• Capability: 53% aim to solve capability issues through external talent.

While offshoring to regions like India, the Philippines, and Eastern Europe continues to thrive, nearshoring is quickly gaining momentum. According to Deloitte’s 2024 Global Outsourcing Survey, 76% of IT leaders now use offshore development teams, but a growing number are exploring nearshore options to enhance collaboration and agility.

The appeal of nearshoring lies in its proximity (both in geography and time zone), which enables real-time communication, faster iteration cycles, and better cultural alignment. This is especially important in software development and agile environments where frequent communication and quick feedback loops are essential.

Industry Adoption: Who’s Leading the Charge?

The industries embracing nearshore and offshore models most actively include:

• Fintech: Data security and regulatory compliance push some functions onshore, but engineering talent is increasingly sourced nearshore for speed and flexibility.
• SaaS and E-commerce: Agile sprints and product release cycles benefit from blended teams that can execute around the clock.
• Healthcare IT: With growing demand for data platforms and integration, nearshore teams help support backend development, integrations, and testing.

However, sectors like government, legal, and financial advisory services remain more cautious—largely due to compliance constraints and the need for closer control over client-facing functions.

Latin America’s Talent Surge

Latin America has emerged as a powerhouse for nearshore IT services, in particular for U.S.-based companies. The region offers strong technical education systems, growing developer communities, and increasingly bilingual talent—all at a lower cost than domestic hiring. It’s no wonder that U.S. demand for Latin American tech talent has surged by approximately 70% since 2020.

Moreover, nearly 50% of U.S. companies plan to increase nearshoring through 2025. This indicates that the nearshoring trend is more than a pandemic-era workaround; rather, it seems to be a permanent shift in how companies scale IT teams.

Insight from The Doyle Group’s Experience

At The Doyle Group, we’ve observed a clear trend across engagements: companies are increasingly adopting offshore or nearshore models for technical execution roles where deliverables are well-defined and collaboration needs are moderate. Common roles in this category include:

• Software Engineers (Front-end, Back-end, Full Stack)
• QA Automation and Test Engineers
• Cloud and DevOps Engineers
• Technical Support Analysts

These positions lend themselves well to remote or hybrid setups. They also benefit from the cost and scalability advantages of offshoring or nearshoring without compromising productivity.

In contrast, roles that require high-touch collaboration, stakeholder interaction, or strategic decision-making—such as project managers, scrum masters, or technical leads—are more frequently retained onshore or nearshore in closer time zones. This approach ensures smoother communication, better integration with core teams, and stronger alignment with company culture and goals.

By carefully segmenting talent needs in this way, organizations can optimize both team performance and budget allocation while mitigating the risks commonly associated with fully remote or offshore structures.

Choosing the Best Approach Based on Company Size

Outsourcing is definitely not a one-size-fits-all model, and company size often determines the right mix of onshore, nearshore, and offshore resources. For example, startups and mid-size companies tend to use offshore for quick scalability and cost savings, especially when ramping up engineering teams. In contrast, enterprise-level organizations are more likely to blend nearshore and offshore to maximize productivity, with some adopting “follow the sun” models for 24/7 development. (“Follow the sun” is a strategy where work is continuously passed between teams in different time zones, allowing for 24/7 productivity and faster turnaround times.)

At The Doyle Group, we’re seeing many companies take a phased approach—starting with smaller nearshore pilot projects, often in areas like Mexico or other regions in Latin America, before expanding to larger distributed teams. This strategy helps organizations minimize risk, build internal alignment, and integrate new team members more effectively over time.

Advantages of the Nearshore Model

While the offshore and nearshore models both have their advantages, many U.S. companies choose nearshoring based on four key benefits:

1. Timezone Compatibility: Real-time collaboration during U.S. business hours.
2. Talent Availability: Access to skilled developers and engineers with strong English proficiency.
3. Cost Efficiency: 30–50% lower labor costs than U.S. or European equivalents.
4. Cultural Affinity: Greater alignment on communication styles, work ethic, and collaboration norms.

With the nearshore strategy as an option, many companies no longer have to choose between quality and cost. Instead, they can enjoy both if they work with the right partner.

As workforce models evolve, staying competitive requires the right balance of talent, collaboration, and cost control. Leading companies are not just outsourcing—they’re strategically aligning their teams with business needs and project demands.

At The Doyle Group, we help organizations build scalable, culturally aligned teams through nearshore solutions that drive efficiency, speed, and results. Reach out to our team today to learn more about the solutions we offer.