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Tech talent acquisition has become a zero-sum game for US businesses. While big tech companies snap up the best domestic developers with six-figure salaries and lavish perks, small and medium-sized businesses are left scrambling for scraps in an increasingly barren talent landscape. The numbers tell the story: 92% of US manufacturing executives are now exploring nearshoring as their solution.

I witnessed this shift firsthand last year while searching for a specialized Salesforce developer with legal operations experience for a client. After six weeks of interviews with underqualified candidates and salary demands that shattered our budget, we expanded our search to Latin America. Within days, we connected with three exceptional candidates from Colombia. The developer we hired not only matched every technical requirement but seamlessly integrated with the team from day one, at a cost 40% lower than the lowest US-based offer.

This experience wasn't an outlier. It represents a fundamental shift in how forward-thinking businesses are addressing their talent needs. Let's explore why nearshoring, particularly to Latin America, has become such a compelling strategy for US companies in 2025.

Is Nearshoring Right for Your Business? A Quick Assessment

Before diving deeper, take a moment to consider if nearshoring might be right for your situation:

• Are you struggling to find specialized tech talent within your budget?
• Is your hiring process taking more than 60 days to fill critical tech positions?
• Are you competing with larger companies for the same limited talent pool?
• Do you need to scale your tech team while controlling costs?
• Are you open to managing team members in similar time zones but different countries?

If you answered "yes" to three or more of these questions, nearshoring could offer significant advantages for your business. Continue reading to discover how to implement this strategy effectively.

The Perfect Storm: US Demographics and the Growing Tech Talent Gap

The United States is facing a significant demographic challenge that directly impacts your ability to hire tech talent. By 2030, over 20% of the US population will be 65 years or older, with older adults outnumbering children for the first time in US history. Meanwhile, the Bureau of Labor Statistics projects a shrinking labor force for the 16-24 age group, with a projected decrease of 7.5% between 2020 and 2030.

These demographic shifts are occurring precisely when tech job demand is skyrocketing. Tech positions are expected to grow at twice the rate of the overall workforce, with approximately 356,700 job openings anticipated annually due to both employment growth and retiring workers.

This creates a fundamental math problem: more tech jobs + fewer available workers = severe talent shortages.

The numbers tell a stark story:

• 90% of businesses face challenges recruiting entry-level tech talent
• 61% report significant shortages of essential technical skills
• By 2026, over 90% of organizations will experience an IT skills crisis

And it's not just about quantity; it's about specialized skills. The jobs seeing the highest demand growth include:

• AI and machine learning engineers
• Data analysts and scientists
• Cybersecurity specialists
• Cloud engineers
• Full-stack developers

Why Traditional Talent Solutions Fall Short

The traditional approach of competing for local talent has become increasingly problematic for several reasons:

Cost inflation: Top tech talent in the US commands premium salaries that continue to rise, with senior developers in places like California earning $101,000-$177,000 annually, before benefits, bonuses, and other perks.

Fierce competition: You're not just competing against other companies in your industry or region; you're up against tech giants with seemingly unlimited resources and brand appeal.

Specialized skill shortages: Finding professionals with niche technical specializations often involves lengthy searches, recruitment fees, and compromises on either quality or cost.

As one expert pointed out, "The US faces such a substantial technology talent shortage that even if all current positions were filled and every job seeker in the tech sector were hired, there would still be unfilled roles for at least the next two decades."

This reality has pushed businesses toward a strategic solution that addresses both availability and cost concerns: nearshoring.

Why Latin America Has Emerged as the Premier Nearshoring Destination

While nearshoring isn't a new concept, recent global events have accelerated its adoption, with Latin America emerging as a particularly attractive destination for US companies.

Geographic Proximity and Time Zone Alignment

When I began regularly working with Colombian developers, the immediate benefit was the time zone compatibility. With Colombia operating in GMT-5, our teams could collaborate in real-time during normal US East Coast business hours.

This eliminated the dreaded "waiting game" that often happens with offshore teams in Asia or Eastern Europe, where you send an email at the end of your day and wait until the next morning for a response. Real-time collaboration means:

• No more 6 AM or 10 PM meetings
• Quick problem-solving without 24-hour delay cycles
• Ability to join regular team meetings without special scheduling

Dramatic Cost Savings Without Sacrificing Quality

The numbers speak for themselves:

• Middle-level developers in Latin America: $25-$29/hour (vs. $52-$62/hour in the US)
• Senior developers: $29-$35/hour (vs. $62-$72/hour in the US)
• Annual salaries for senior developers: $36,000-$72,000 (vs. $101,000-$177,000 in the US)

These represent savings of 50-65% without compromising talent quality. One client of mine hired two senior Colombian developers for slightly less than what they had budgeted for one US-based developer, accelerating their product development timeline by 40%.

US vs. Latin American Tech Talent: The Complete Picture

Cultural Alignment That Makes Teamwork Seamless

If you've worked with offshore teams before, you've likely encountered cultural disconnects that created friction and misunderstandings. Latin American professionals stand out for their:

• Strong alignment with Western work culture and business practices
• Team-oriented collaboration styles that mesh well with US teams
• Growing English proficiency, especially among tech professionals

As one client put it: "Our Latin American developers don't feel like they're 'offshore'—they feel like remote team members who happen to live in a different country."

World-Class Education and Technical Capabilities

Colombia isn't just offering random offshore talent—it's developing a robust tech education system and ecosystem that rivals the best in Latin America:

• Four of the 10 best universities in Latin America are located in Colombia
• The University of the Andes ranks 7th in Latin America for tech education
• 28% of Colombian students undergo technical training
• Around 13,000 tech graduates enter the workforce annually
• Colombia ranks 6th globally in technology skills according to the 2023 Global Skills Report

Colombian developers demonstrate exceptional proficiency in several key technical areas:

• Security Development: Ranked 5th globally in HackerRank's security challenges
• Full-Stack Development: Strong skills in React, Node.js, Vue.js, and Python
• Mobile Development: Expertise in iOS, Android, and React Native
• DevOps & Automation: Proficient in CI/CD pipelines and cloud platforms

Four Proven Strategies for Implementing Nearshoring Successfully

Making the transition to nearshoring requires careful planning. Here are four approaches, each with distinct advantages depending on your business needs:

1. Working with an Employer of Record (EOR)

An Employer of Record serves as a third-party entity that legally employs your workforce in another country, handling compliance with local labor laws, payroll administration, and human resources management.

Benefits:

• Ensures adherence to complex labor regulations in the nearshore location
• Handles payroll processing and tax compliance
• Manages essential legal documentation and contracts
• Streamlines onboarding for international teams
• Provides flexibility to test the nearshore market without establishing a legal entity

This approach is ideal for businesses looking to minimize upfront investment while still accessing nearshore talent quickly.

2. Hiring Independent Contractors

Another strategy involves engaging independent contractors in nearshore locations to fulfill specific project requirements or tasks.

Benefits:

• Access to specialized skills and expertise
• Flexibility in scaling workforce according to project demands
• Less administrative burden compared to direct employment
• Quick engagement process

When working with contractors, be cautious of potential misclassification risks and ensure clear expectations regarding project deliverables and timelines.

3. Establishing a Subsidiary

For long-term strategic investments, establishing a legal entity or subsidiary in the nearshore country allows direct employment of local talent.

Benefits:

• Highest degree of control over operations and team building
• Ability to cultivate specific company culture within the nearshore location
• Potential tax advantages and incentives from the host country
• Foundation for long-term strategic investment

This approach requires substantial upfront investment and a significant commitment to the nearshore location but offers the most control.

4. Partnering with Local Companies

Collaborating with existing businesses or outsource providers in nearshore countries can provide a faster entry into the market.

Benefits:

• Leverage established local expertise and infrastructure
• Immediate access to local talent pools
• Potential cost efficiencies through shared resources
• Faster market entry compared to establishing a subsidiary

When considering partnerships, carefully vet potential collaborators to ensure alignment in quality standards, business ethics, and communication practices.

FREE RESOURCE: Download our 2025 Guide to Building Remote Development Teams

Building Trust in Remote Teams: The Key to Successful Nearshoring

The ultimate success of your nearshoring strategy depends on your ability to build strong, trust-based relationships with team members you may never meet in person.

Establish Clear Communication Frameworks

Create transparent information flow by:

• Holding regular video calls with cameras on (I recommend a 30-minute team call every Monday morning)
• Sharing company updates consistently, even when there's not much new to report
• Explaining the reasoning behind decisions, not just announcing them
• Creating accessible documentation that gives everyone the same information

Choose the Right Communication Tools

Not all communication channels build trust equally:

Create Shared Experiences Across Distances

Build unity by:

• Holding virtual team-building activities (many tech companies require 30-minute team games bi-weekly)
• Creating dedicated channels for non-work discussions
• Scheduling virtual coffee breaks where work talk is discouraged
• Recognizing cultural differences and holidays important to team members

Lead with Transparency and Consistency

Effective leadership in remote settings means:

• Following through on commitments, no matter how small
• Applying policies and standards uniformly across team members
• Maintaining regular meeting schedules and communication cadences
• Being open about challenges and admitting mistakes
  
  

Want to learn more about building high-performing remote teams? Schedule a 30-minute strategy call with our global team management experts

The Road Forward: Turning Challenges into Competitive Advantages

The demographic changes affecting the US workforce aren't going away. By 2030, all baby boomers will be over 65, and the overall growth rate of the working-age population will continue to slow. Meanwhile, the demand for tech talent—especially in specialized areas like AI, data science, and cybersecurity—will only accelerate.

Forward-thinking entrepreneurs are turning these challenges into competitive advantages through strategic nearshoring. By tapping into the rich talent pools of Latin America, particularly countries like Colombia with their strong educational institutions, cultural alignment, and time zone compatibility, US businesses can maintain their technological edge while controlling costs.

The global talent pool offers unprecedented opportunities. With time zone alignment, cultural affinity, and technical expertise, Latin American developers can seamlessly integrate with your existing teams, working alongside domestic talent to drive innovation and growth.

The most successful businesses in 2025 will be those that build diverse, distributed teams that leverage the best talent regardless of location. By implementing thoughtful nearshoring strategies now, you position your company for sustainable growth in an increasingly competitive talent landscape.

The Viva Global Advantage: Smart Matching System

At Viva Global, we've transformed the nearshoring process with our proprietary Smart Matching System™. We don't just connect you with any Latin American developer; we find the perfect match for your specific needs. Our data-backed approach combines human expertise with predictive hiring algorithms to identify pre-vetted, culturally aligned talent ready to contribute from day one.

As an employer of record and remote staffing agency specializing in Latin American talent, we understand the unique challenges of building trust across borders. We've helped countless companies implement the nearshoring strategies outlined in this guide while providing pre-vetted, culturally aligned professionals who seamlessly integrate with existing teams.

With access to 10,000+ pre-screened candidates and a streamlined process that delivers top candidates in just 7-10 days, we've eliminated the guesswork from remote hiring. The result? Faster placements, stronger teams, and long-term success—all with a simple, transparent fee structure.

Ready to explore how Latin American developers can transform your tech team? Book a free consultation call today!

About the Author

The author is Co-Founder and VP of Sales at Viva Global, a leading remote staffing agency and employer of record specializing in connecting US companies with the top 1% of Latin American talent under the motto "Talent Without Borders." With extensive experience across Fortune 500 companies, top-rated tech firms, and early-stage startups in sales and customer success roles, the author has witnessed firsthand how recruitment processes evolve as companies scale. This diverse background has shaped a unique perspective on talent acquisition that now drives Viva Global's approach to placing remote employees across various industries, helping businesses overcome hiring challenges and build thriving distributed workforces.