Should You Hire Local or Offshore Developers? A Practical Guide Including Top Companies

You’re looking to scale your development team. But now you’re faced with a big decision: should you hire local or offshore developers? It’s a question that many businesses struggle with.

Well, we’re here to help you figure it out. We’ll take a look at both options so you can decide which is best for your company. Plus, to help you get started, we’re providing a list of top companies for hiring the developers for each model.

Hiring Local vs. Offshore Developers: Which One Is Right for Your Business?

The choice comes down to three factors: budget constraints, collaboration needs, and timeline pressure. Local hiring gives you face-to-face access and cultural alignment, while offshore hiring unlocks global talent pools and significant cost savings through remote collaboration with developers in countries where salary expectations are lower than in the US.

When we talk about hiring locally, we mean building an in-office team in your area. 

Offshore hiring, on the other hand, opens up access to global talent pools and reduces development costs by working remotely with developers in countries where the cost of living is lower than in the US.

Both approaches have clear strengths for different business situations:

Local hiring makes sense when you need core team members who:

• Drive your technical strategy and architecture
• Handle sensitive operations or IP-critical projects
• Lead and mentor other developers
• Value regular in-person collaboration and face-to-face team dynamics

It also only makes sense when you have the budget to compete for top local talent. 

On the other hand, offshore hiring works best when you need to:

• Scale your team quickly without the overhead of US salaries
• Access specialized skills that are hard to find locally
• Build a development team that can work around the clock (if that’s your preferred model)

Offshore hiring works particularly well for companies that already have remote work infrastructure in place or are ready to embrace remote collaboration tools and practices.

But here’s the thing: it’s not an either/or choice. Many successful companies run a hybrid model: local leads working with offshore developers.

This approach lets you maintain control of your core operations while leveraging global talent to scale faster and fill specific skill gaps.

Major tech companies have been using this model for decades. They maintain strategic leadership locally while building strong development teams in Latin America (LatAm) and other locations, getting the best of both worlds.

Budget Considerations When Deciding Between Hiring Local or Offshore Developers

A three-person development team costs over $150,000 more annually when hired locally versus offshore in Latin America—and that's before factoring in benefits and office overhead.

Here’s a breakdown of the cost differences and considerations when hiring a fully local team, a fully offshore team, or a hybrid setup, with numbers sourced from our LatAm vs. US Salary Guide. 

In this example, we’re referring to forming a full-stack developer team. 

So the cost savings of hiring a three-person offshore development team in a Latin American country is over $150,000 before even considering the savings from not having in-office employees (benefits and office and so on). 

The numbers often speak for themselves. And that's why forward-thinking CTOs are turning to LatAm to build better engineering teams. 

Why You Should Consider Hiring Nearshore Developers

You're probably already working with remote developers spread across different US cities. The jump to working with a team in Mexico City or Buenos Aires is smaller than you think.

The workday overlaps almost completely, communication happens in real-time, and the cultural alignment with US business practices is strong.

When we talk about “nearshore hiring,” we’re referring to recruiting developers from countries in close proximity to the US, specifically those in Latin America. It’s a type of offshore hiring where geographical closeness brings significant advantages:

• Same time zones: Most LatAm countries operate within US time zones or with minimal difference (usually just 0–3 hours), allowing for synchronized workdays.
• Cultural compatibility: Many LatAm developers have extensive experience working with US companies and understand American business culture.
• English proficiency: You’ll find strong English communication skills, eliminating language barriers that might exist with teams in more distant regions.
• Geographic proximity: When in-person meetings are needed, travel between the US and LatAm is relatively quick and affordable.

The 30–60% cost savings we usually see isn’t just about spending less. It’s about strategic growth.

Companies that adopt nearshore hiring can:

• Hire two developers for the price of one US developer
• Reinvest savings into product development or marketing
• Scale their tech teams faster than competitors
• Maintain cash reserves for longer runways for startups

This is why companies like Microsoft and Google have been building development teams in Latin America for decades. They recognized early that the combination of cost savings, time zone alignment, and talent quality creates a competitive advantage.

While local hiring gives you face-to-face interaction (when people are actually in the office), nearshore hiring delivers comparable collaboration with significantly better economics.

For most growing businesses, the math simply makes more sense.

For a deeper dive into the strategic advantages of hiring developers in LatAm, read: “How AI and Time Zones Are Driving US Companies to Hire Developers in Latin America.”

How to Hire Offshore or Nearshore Developers 

When building an offshore development team, there are four main approaches to finding and hiring developers.

Each has its own advantages depending on your needs and resources:

• DIY hiring: Source and hire developers yourself through LinkedIn, tech forums, and country-specific job boards. While this gives you full control, you’ll need to handle international payroll, contracts, and compliance on your own.
• Staffing or recruitment agency: Partner with specialists who have pre-vetted talent pools and handle the complexities of international hiring. Staffing agencies can handle both quick project staffing and ongoing employment logistics like payroll, compliance, and benefits administration for international hires. Recruitment agencies generally focus on long-term permanent hires and typically handle the placement process but leave ongoing employment management to you.
• Software development companies: Work with established firms that offer staff augmentation services where they provide their developers to augment your existing team. These companies typically have talent ready to deploy, handle all employment logistics, and offer technical management. This option works well when you need specialized expertise quickly and don’t want to manage the hiring process, but still want developers who integrate directly with your team.
  The downside is that developers can get rotated in and out based on the company's needs, which means you don't get the long-term team stability that comes with building your own dedicated engineering team.
• Freelance platforms: Access a global pool of developers through platforms like Upwork for project-based work. This works well for short-term needs but may not be ideal for building long-term team relationships.

Why building your own remote development team is often the better choice

While all these approaches have their place, if you're serious about scaling, hiring your own developers directly (with or without the help of a recruitment agency) typically delivers the best long-term results.

When you build your own remote development team, you get:

• Complete ownership: Your developers work exclusively for your company, understand your codebase intimately, and are invested in your long-term success
• Cultural integration: They become genuine team members who understand your processes, participate in your company culture, and grow with your business
• Consistency and reliability: No risk of developers being reassigned to other projects or companies mid-sprint
• Better ROI over time: While the upfront effort is higher, dedicated team members become exponentially more valuable as they learn your systems and business

Here's our CEO explaining why direct hiring often beats working with development agencies:

9 Top Companies to Hire the Best Developers 

After weighing the pros and cons of local, nearshore, offshore, or hybrid hiring models, your next decision is whether to handle recruitment yourself or work with a partner.

If you choose to use a staffing agency, recruitment firm, or staff augmentation service, the partner you select can make all the difference.

The best companies should be able to connect you with developers who understand your business needs, fit your company culture, and align with your budget requirements.

Here are nine options to consider, based on whether you’re looking for local talent or exploring the cost advantages of Latin American developers we discussed earlier or offshore developers in countries further away.

Companies to hire nearshore or offshore developers

Here are the best companies for those considering hiring expert developers from outside the US.

1. Near

Near (Hire With Near) is a full-service staffing and recruiting agency that helps US companies of all sizes hire top-performing remote talent in Latin America across finance, accounting, sales, software engineering, AI, data, design, marketing, operations, and virtual assistance.

Unlike companies that source talent globally, we’ve built deep networks specifically in LatAm. This focused approach means we truly understand the region’s tech ecosystem, from salary norms to local work culture.

Our rigorous vetting process ensures you only meet candidates with strong English skills, relevant technical expertise, and cultural compatibility with US teams. 

Whether you need React specialists, website developers, or full-stack engineers who understand modern frameworks, we find skilled developers in LatAm who match your exact technical requirements and company culture.

Key features

• Done-for-you hiring in under 3 weeks: Receive curated candidate lists within 3 days and complete your hires in under 3 weeks, often faster than traditional US recruiting cycles
• No upfront fees: You never pay anything upfront. Once you make a hire, choose between a one-off placement fee or monthly fee depending on whether you want us to handle payroll and compliance
• Access to 45,000+ pre-vetted candidates: While we maintain a talent pool of over 45,000 professionals, we don't just search there. We actively source talent that meets your exact technical stack and experience requirements
• Real-time collaboration: Work with developers in overlapping time zones (typically 0-3 hours difference) for seamless daily standups and sprint planning
• Quality that performs like your best US hires: Our developers have worked with major US companies and understand American development practices, code review processes, and agile methodologies

Client review: “The talent Near provided is incredibly high quality. I worked at Google for 10 years, where the bar for talent is very high, and I would say the people I placed through Near are comparable to the people I worked with at Google.” – Ashley Black, Founder at Candid Consulting

2. Belatrix

A devision of Globant, Belatrix is a software development company with offices in Argentina, Peru, and Colombia. It provides specialized teams for various projects, including developers, designers, project managers, and front-end and back-end developers. The company has worked with major clients such as EA, Unilever, Nissan, and Ubisoft.

Key features

• Engagement models: Teams on-demand, software development, staff augmentation
• Industries: Fintech, media and entertainment, healthcare, hi-tech, energy
• Pricing: Determined upon consultation based on the required service

Client review: “Working with Globant has been enriching. Their talented team, quick responses, and adaptability are pivotal. They are integral to our team, embodying collaboration and shared goals.” – Senior Software Engineer at Gannett (via company website)

3. TECLA

With a presence in 16 countries across LatAm, TECLA connects companies with a wide range of tech experts. It provides services that include vetting, sourcing, onboarding, HR, and retention for remote teams. TECLA works with all types of clients to bring on remote developers, cloud and AI engineers, designers, QA testers, data scientists, product managers, and marketers.

Key features

• Focus: Nearshore software development talent integration for long-term engagements
• Engagement models: Staff augmentation, nearshore teams, software development, software outsourcing
• Pricing: All-inclusive monthly rate per resource or team

Client review: “When we were interviewing nearshore software development companies, TECLA really stood out with how receptive and helpful it was to my laundry list of questions about hiring in LATAM. From rates to vetting and interview behavior, TECLA has gone above and beyond.” – Abigail Chambley, Director of Talent Acquisition at Mission Cloud (via company website) 

4. Globy

Globy is an international talent acquisition and staffing agency that connects companies with vetted developers and professionals in 20+ countries within LatAm and Europe. It specializes in sourcing, validating, and recruiting top candidates for fast-growing businesses. Trusted by global brands such as Deel, Hofy, Sydecar, and Bonusly.

Key features

• Services: Talent acquisition, compliance and payroll, staff augmentation, expansion and localization, captive team solutions
• Industries: IT, fintech, blockchain, software development, PR and communication
• Specialization breakdown: Recruiting (50%), IT staff augmentation (20%), PEO/employee leasing (10%), staffing (10%), custom software development (5%), employer of record (EoR) services (5%) (via Clutch)

Client review: “Globy was able to understand precisely what we were looking for from various angles and bring the right people to the interviews.” – Sergey Mondrat, Founder of CaptiveCella (via Clutch)

5. Penbrothers

Since 2014, Penbrothers has provided access to exceptional Filipino talent in IT development, technology services, customer service, finance, sales, and many more. It has served 90+ startups and SMEs and was recognized on the Asia-Pacific High-Growth Companies 2022 list. Its Filipino workforce operates day and night to support 24/7 business operations.

Key features

• Services: Offshore staffing with industry-specific expertise, business development services, office facility services, networking, coworking, basic business solutions
• Team composition: 1,500+ team members across multiple functions and industries
• Specialization breakdown: back office outsourcing (15%), PEO/employee leasing (15%), recruiting (15%), staffing (15%), customer service outsourcing (10%), employer of record (EOR) services (10%), finance and accounting outsourcing (FAo) (10%), sales outsourcing (10%) (via Clutch)

Client review:
“They’ve been a key talent partner that has sourced and helped us build a high-performance team.” – Chris Taylor, President and CEO of Servantex (via Clutch)

6. Uplers

Uplers connects businesses with top product and engineering talent utilizing AI and human intelligence. With locations in India, Australia, and the US, Uplers specializes in IT solutions, including web and software development and mobile apps. Its post-hiring support includes payroll, IT, and administrative management to ensure seamless integration.

Key Features

• Focus: Remote hiring platform offering services in a wide range of major domains and niches
• Team breakdown: over 1.5 million skilled professionals spread across 5+ time zones
• Talent verification: Claims to accept only the top 3.5% of talent through a holistic background check, AI-powered communication assessment tests, aptitude tests, technical evaluations, and a panel interview

Client review: “Uplers earned our trust by listening to our problems and finding the perfect talent for our organization.” Baris Agacdan, Director (via company website)

Companies to hire developers in the US

If you’re looking for local talent, here are a few of the best companies to consider.

7. USA Tech Recruit

Originally part of European Tech Recruit, USA Tech Recruit became a separate company in 2016. It is a specialized tech recruitment agency focused on matching businesses with specific tech talent. The company has worked with clients such as Sony, Nexperia, Accenture, Samsung, and Pfizer, using AI-powered tools and data-driven strategies to enhance recruitment.

Key features

• Focus: Specialist recruitment solutions for niche technology industries in the US
• Services: Permanent and contract hires, compliant payroll solutions, global retained and executive search, Recruitment Process Outsourcing (RPO)
• Industries: AI and machine learning, semiconductor, automotive tech, software engineering, high-frequency trading, wireless and IoT, embedded systems, industry 4.0 and robotics, and cutting-edge research

Client review: “I have worked closely with various members of the team at USA Tech Recruit for some time. Their ability to attract top talent goes without saying (and their success speaks for itself), but their ability to establish a cultural as well as functional fit with NVIDIA is what sets them apart.” – Hiring Manager at NVIDIA (via company website).

8. Kforce

With 60 years of expertise, Kforce is a Florida-based company specializing in staffing and workforce solutions. Its technology staffing services cover a wide range of specialties, including full-stack development, enterprise data, UX/UI, BI/AI, and Agile transformation. Trusted by over 3,000 clients, Kforce has been ranked by Forbes as among America’s Best Recruiting Firms in 2024. 

Key features

• Focus: Meet staffing needs by sourcing top talent for contract, contract-to-hire, and direct-hire positions
• Industries: Technology, financial services, communications, healthcare, insurance
• Team composition: Around 18,000 experts for technology staffing and finance and accounting staffing

Client review: “Kforce has delivered exceptional talent and expertise enabling us to vastly improve the overall user experience and adoption of the platform.” – Principal Design Manager (via company website)

9. Mondo

Mondo, an Addison Group company, has 10 offices nationwide and is headquartered in New York City. Its extensive IT and technology network specializes in 180+ of the latest technologies and coding languages, including AR, VR, IoT, big data, cloud computing, and machine learning. Clients have worked with Mondo for an average of two years, and it holds an 82% client Net Promoter Score (NPS).

Key features

• Services: IT and tech staffing, digital marketing staffing, creative staffing
• Team composition: 1,000+ on-demand experts available on contract, contract-to-hire, and full-time basis
• Specialization breakdown: IT managed services (30%), recruiting (25%), staffing (25%), digital strategy (20%) (via Clutch)

Rating: Addison Group has a 4.2 out of 5 score from 903 reviews (via Glassdoor)

Final Thoughts

Finding the right developers for your team comes down to understanding what your business actually needs right now versus what sounds good on paper.

If you're building core technical architecture or handling sensitive IP, keeping those roles local makes sense, assuming you have the budget to compete for top talent in your area.

But here's what we've seen with hundreds of companies: the either/or mindset misses the biggest opportunity.

Smart companies use a hybrid approach. They keep technical leadership and sensitive projects local while leveraging nearshore talent in Latin America for the bulk of their development work.

This gives you real-time collaboration during overlapping work hours, significant cost savings, and access to developers who understand US business practices.

The math is pretty straightforward. You can hire two skilled LatAm developers for the cost of one US developer, reinvest those savings into product development or marketing, and scale your team faster than competitors who limit themselves to local talent pools.

At Near, we've helped over 700 companies build high-performing teams using this approach, with many saving $300,000-$1,200,000 annually while maintaining—and often improving—their output.

If you want to explore how nearshore developers can strengthen your team while keeping costs manageable, we're here to help you evaluate your options without any upfront commitments.

Schedule a free, no-commitment consultation call today and discover how Near can help you scale your team with nearshore talent.