Everyone Talks About Nearshoring. Few Start With the Job

Businesses should define the work first, then choose domestic, nearshore or offshore talent based on skills, operating requirements, time zones, and costs, according to 1840 & Company.

OVERLAND PARK, Kan., Aug. 11, 2026 /PRNewswire/ -- Small businesses continue to struggle to find qualified workers. In June 2026, 84% of small business owners hiring or trying to hire reported receiving few or no qualified applicants, according to the National Federation of Independent Business. That pressure can make nearby international markets appear to be a quick geographic solution. But choosing a country before defining the work can cause a business to pay for time-zone alignment it does not need, overlook qualified talent elsewhere, or select a market that does not fit the operating requirements.

"The first question is always what the job requires," said Bryan DiGiorgio, Founder and CEO of 1840 & Company, a global staffing and business process outsourcing provider. "If the work does not need to be local, a company can look anywhere and choose the best combination of skills, communication, coverage, and cost."

The Job Comes Before the Country

Some positions require a physical presence, local market knowledge, or senior leadership close to U.S. customers. Others can be performed from almost anywhere if the professional has the right experience and tools.

Once a company determines that a role can be performed remotely, the decision should move beyond country comparison. Customer-facing work that depends on real-time collaboration may benefit from local talent in Latin America, where working hours align closely with U.S. teams. Structured, high-volume, or cost-sensitive work may be better suited to offshore markets such as the Philippines, India or Pakistan, where lower labor costs and experience with back-office functions and repeatable workflows can create greater efficiency.

Some functions may use teams in multiple regions to extend coverage without requiring one group to work overnight. Zendesk's 2026 customer-experience research found that 74% of consumers expect customer service to be available around the clock, while 88% expect faster responses than they did a year earlier. Those expectations can strengthen the case for a follow-the-sun model, in which time-sensitive work passes between teams operating during normal local hours. The model requires clear ownership, handoffs, and escalation procedures.

"Too many providers promote the geography they can support rather than the geography that fits the job," DiGiorgio said. "If they only recruit in one region, they will explain why that is the answer. Businesses need a partner that evaluates across markets."

Cost Cannot Be Removed From the Decision

Nearshoring is often marketed as a quality-first alternative to traditional offshoring. DiGiorgio cautions that this comparison can become misleading when providers avoid discussing how substantially labor costs vary among markets.

Companies must also evaluate total employment costs rather than wages alone. Statutory bonuses, local benefits, payroll requirements, employer-of-record fees, equipment, and compliance obligations can change the economics of a market. A country that appears inexpensive based on salary may not remain the lowest-cost option once the complete employment structure is considered.

"Everyone tries to take cost out of the conversation and make it about quality. You cannot," DiGiorgio said. "Cost is part of the decision. The question is whether the savings fit the work without creating problems in communication, performance, or management."

Different Roles Require Different Talent Models

As a business grows, its workforce mix may need to change. Many companies begin with one remote market because a single-region model is easier to manage. They may later add nearshore talent for roles requiring closer collaboration or U.S.-aligned hours while retaining offshore teams for more cost-sensitive functions.

The goal is not to add countries for its own sake. Each expansion should solve a specific problem, such as accessing a harder-to-find skill, extending operating coverage, or improving the cost structure. "Otherwise, the company has not diversified its workforce, it has only multiplied complexity," DiGiorgio said. Choosing the right market and workforce model is only part of the challenge.

Workforce Infrastructure Makes the Model Work

Distributed hiring requires systems for sourcing, vetting, contracting, onboarding, paying, and managing different jurisdictions. Companies must establish clear performance expectations, communication routines, and accountability across the team. They also need systems that protect company information, control device access, and ensure access can be removed quickly when a worker leaves.

 These responsibilities can be difficult for growing businesses that may not have dedicated teams for each function. Without a coordinated operating structure, businesses can create gaps in onboarding, compliance, data security, and accountability. 1840 & Company works with businesses to manage those requirements across domestic, nearshore, and offshore teams in more than 150 countries.

"A small business should not be locked into one country or one workforce model," DiGiorgio said. "It needs the flexibility to adjust where and how work is performed as its requirements change."

About 1840 & Company

Bryan DiGiorgio is the Founder and CEO of 1840 & Company, a global staffing and business process outsourcing provider headquartered in Overland Park, Kansas.  Transitioning between industrial revolutions, the year 1840 inspired the company's focus on helping businesses excel between their different phases of growth. Today, he leads 1840 & Company in helping businesses build and manage flexible workforces through global staffing, direct hiring, and business process outsourcing. Powered by its proprietary WorkforceOS, 1840 & Company supports businesses across the workforce lifecycle, with capabilities spanning talent sourcing and hiring to workforce management and operations in more than 150 countries.

For more information, visit 1840 & Company. 

References

• National Federation of Independent Business. (2026, July 2). NFIB jobs report: Small business job openings rebound. nfib.com/news/press-release/nfib-jobs-report-small-business-job-openings-rebound/
• Zendesk. (2025). Zendesk CX trends 2026. cxtrends.zendesk.com/

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SOURCE 1840 & Company