Global talent acquisition models: EOR, nearshoring, and offshoring

Companies are increasingly utilizing diverse models to manage international talent and technological development. One growing solution is the Employer of Record (EOR), which allows businesses to hire professionals in foreign countries without establishing a local legal subsidiary. An EOR acts as the legal employer, managing payroll, contracts, and local tax or social security obligations, while the client company maintains daily operational control over the employee.

In the software development sector, firms are choosing between onshoring, offshoring, and nearshoring. Onshoring involves hiring within the same country to ensure cultural and time-zone alignment, though often at a higher cost. Offshoring moves activities to distant regions like India or Eastern Europe to leverage different markets. Nearshoring, which involves hiring in geographically closer regions such as Latin America for U.S. companies, has become a prominent middle ground, offering a balance of specialized talent and manageable time-zone differences.