Nearshoring: The Modern Staffing Solution for Tech Companies

Written by Scott Craig|Posted on August 25, 2023

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The future of tech companies depends on recruiting and retaining a talented workforce. But many companies are facing serious challenges in meeting their staffing needs.

Staffing Problems: Finding and Keeping Qualified Workers Tech companies are facing three main staffing challenges:

  1. A widening skills gap: An estimated 87% of companies are struggling to find employees with the technical skills that they need.
  2. Too few workers: The National Foundation for American Policy estimates that there are over 804,000 vacant tech positions due to a workforce shortage.
  3. High turnover: Even when companies fill a tech position, they struggle to keep them. 52% of employees report that they are interested in changing jobs.

If companies want to stay competitive in today’s market, not to mention save time and money in recruiting and hiring workers, they must find ways to attract qualified tech workers and lower turnover rates. The solution may be nearshore staff augmentation otherwise known as nearshoring.

Staffing Solution: Nearshoring

What is Nearshoring? Nearshoring is the modern cousin of outsourcing. In the past, many companies solved their staffing problems by outsourcing to countries overseas such as India or China. While this was innovative, outsourcing comes with some drawbacks such as time lags, miscommunications, and a lack of direct management.

Nearshore staff augmentation or nearshoring is when a company hires short-term employees in compatible time zones with the permanent in-house staff. For example, a business based in North America will likely hire talent from Latin or South America. “Staff augmentation” refers to integrating nearshore employees into the company, instead of them working as an external team.

Benefits of Nearshoring Nearshoring can solve tech companies staffing challenges by:

  • Expanding the available talent pool by tapping into the global workforce
  • Hiring talented workers at a lower cost
  • Having better communication due to higher language proficiency and closer time zones
  • Managing workers directly without the middleman
  • Increasing retention by integrating nearshore staff into the company

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Scott Craig

Scott Craig



Kirkland, WA, USA

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