Is Outsourcing Really Stealing US Tech Jobs? 

Outsourcing and nearshoring get a bad rap in a lot of online discussions. Scroll through Reddit or X long enough and you’ll see accusations like “corporate greed,” “betrayal,” or “shipping jobs overseas” tossed around casually. The assumption is often this: if a company hires someone outside the U.S., they must be cutting corners or undermining American workers.

But it’s not that simple. And honestly, we’re long overdue for a more nuanced conversation.

What People Miss About Outsourcing

There are some who  paint outsourcing as a ruthless, cost-cutting tactic used by big corporations to pad executive bonuses and keep shareholders happily floating on yachts. But that’s a bleak and narrow narrative that overlooks a very different reality for countless others: the entrepreneurs, the innovators, the… yes, I’m going to say it, the job makers.

But the truth is, outsourcing is often a lifeline for small businesses, startups, and growth-stage companies that are just trying to stay afloat. These companies aren’t laying off their teams and replacing them with cheaper labor. They’re trying to fill gaps, move faster, and make smarter use of limited resources.

In many of the companies we’ve worked with, nearshoring didn’t take a job away from anyone. It took pressure off already-overworked teams. It allowed founders to stop wearing 12 hats and finally focus on growing the business. It helped overstretched engineers avoid burnout. And in several cases, it led to new local hires because the business finally had breathing room and budget to grow.  

The Tech Hiring Landscape Is Shifting 

The idea that outsourcing is taking something away ignores the bigger issue: the tech hiring market is already broken. Companies aren’t turning to nearshoring to cut corners. They’re turning to it because they’re stuck in a bind.

Take AI, for example. AI adoption is exploding, and so are the costs. A recent CloudZero survey found that monthly AI budgets are expected to jump by 36% in 2025, surpassing $1 million annually on average.

Why? Because the specialists needed to build, maintain, and scale AI infrastructure are expensive. 35% of companies say high salary expectations are the biggest barrier to filling their AI-related roles. Big players like Meta have spent upwards of $100 million on signing bonuses just to poach talent from competitors.

It’s a perfect storm: ballooning budgets colliding with deep talent gaps. Smaller and mid-sized companies can’t afford top-tier AI specialists, and they also can’t afford to fall behind. That’s the definition of a Catch-22.

Meanwhile, the biggest companies are reeling in candidates with signing bonuses and salaries that most smaller companies can’t even touch.

And while data science and machine learning are driving much of the talent gap, the shortage isn’t limited to AI roles. According to a 2025 report by Robert Half, 76% of technology leaders report skills gaps within their departments. The most critical areas include:

• Cybersecurity and privacy
• Technology process automation
• Software and web application development
• Cloud architecture and operations

These are foundational roles, not niche specialties. Yet still the demand for qualified talent continues to outpace supply.

The Experience Paradox Is Squeezing Out Junior Talent

Another overlooked reality  is the shrinking number of entry-level tech jobs. 

Employers today aren’t just hiring for potential; they’re expecting candidates to arrive with a proven track record. With leaner teams and tighter budgets, many companies simply don’t have the time or resources to train early-career talent.

This has created a frustrating cycle: to land your first role, you need experience… but to gain that experience, you need someone willing to give you a shot.

As a result, entry points into tech are becoming harder to access.

Again, this all points to a larger shift in the tech job market as a whole. 

The Other Side of Outsourcing

Nearshoring is one of the most practical, people-first approaches to outsourcing, and it’s gaining traction for a reason.

One piece that’s often missing from the conversation is the people on the other side of the screen.

With nearshoring, you’re not just outsourcing. You’re growing your team. You’re bringing in committed professionals who work side by side with your existing structure. These are not faceless entities stealing jobs.They are incredibly talented, highly skilled professionals across Latin America who are building careers in tech. They’re not just looking for gig work or cheap contracts. They’re looking for meaningful work with real teams where they can grow, contribute, and make a long-term impact.

Outsourcing done well results in a cross-border team of smart, motivated people who care about the work they do.  

Bottom Line? You Can’t Steal Jobs That Aren’t Being Offered

All of this points to one simple, hard to swallow truth: nearshoring isn’t stealing jobs. It’s filling gaps that already exist.

The U.S. tech industry has more open roles than it can afford to fill, and fewer entry-level paths to train the next generation. Meanwhile, qualified professionals in Latin America are ready, eager, and equipped to help companies move forward.

This isn’t about undercutting local workers. It’s about making it possible for growing businesses to keep building.  And when businesses are able to grow, they create more opportunities, both locally and globally.

The Narrative is Outdated. Here’s What We Should Be Asking Instead

Let’s move past the idea that outsourcing is inherently bad or out to take opportunities away. Instead, let’s start asking better questions:

• Is this company outsourcing responsibly?
• Are they transparent with their team?
• Are they treating international hires as valued collaborators, not interchangeable labor?
• Are they using nearshoring to grow sustainably, not just to slash costs?

Outsourcing isn’t the villain. The real issue is how it’s done. Like anything in business, it can be driven by greed, or it can be driven by growth.

At Plugg Technologies, we’ve seen firsthand how nearshoring can be a force for the latter. For the companies we partner with, it’s never about replacement. It’s about building something stronger.

Let’s Talk About It

What are your thoughts? Have you had good or bad experiences with outsourcing? Are there companies doing it the right way or the wrong way? Do you have questions or concerns about whether it’s the right choice for you? 

Drop a comment or reach out. We are here to help!