Near-shoring and offshoring are developing into a strategic lever against the shortage of IT specialists. They open up access to global talent, increase speed and scalability – but present HR with new challenges in governance, culture and leadership. Michael Baier, Managing Director of PageGroup Germany & Austria, analyzes opportunities and risks and shows how companies can successfully use these models in the long term.
Executive Summary
Nearshoring strategy to combat the shortage of IT specialists
- The challenge: The shortage of IT specialists is forcing companies to take new approaches to talent acquisition. Near-shoring and offshoring are becoming increasingly important, but are complex to implement: different work cultures, increasing governance requirements and coordination and coordination efforts increase the risks of international cooperation.
- The solution: Successful nearshoring and offshoring strategies are based on a clear needs analysis, a differentiated choice of location and resilient governance structures. Companies must actively address cultural differences, standardize communication processes and specifically integrate international teams. What is crucial is a coordinated interaction between HR, departments and management.
- Your benefit: Michael Baier shows how companies use nearshoring and offshoring strategically – not just for short-term relief, but for the sustainable development of skills. The article provides concrete recommendations for action for managing international IT projects, building global teams and securing innovative strength.
- Focus: Nearshoring strategy against IT skills shortage, offshoring IT, global talent acquisition, international IT teams, HR governance, cultural integration, project organization
The ongoing skills shortage in the IT and tech sector is forcing companies to rethink their talent acquisition strategy. Cost advantages are no longer the only argument for nearshoring and offshoring. The focus today is on access to specialized expertise, ensuring flexibility and the successful implementation of global projects.
Nearshoring is trending
Nearshoring in particular is currently gaining in importance: According to a current study by the OTH Regensburg, half of the companies surveyed plan to open additional shoring locations in the foreseeable future – 70 percent of them in a nearshoring country, 30 percent in an offshoring region. In addition, 39 percent of companies want to expand existing locations.
At the same time, HR experts are observing that IT staff are being cut more often or areas of responsibility, such as software development, are being relocated near- and offshore. The crucial question for many companies is therefore: How can these models be used not only as a cost factor in the short term, but also as a strategic lever for building competence and innovative strength in the long term?
From the cost argument to the talent factor
The reasons why companies move IT and tech tasks abroad have changed in recent years. While the focus used to be purely on cost savings, today the focus is on access to urgently needed skills. The IT working world is also strongly project-driven. Many skilled workers would rather work on large, innovative projects than be permanently tied up in repetitive administrative tasks. Companies also use offshoring and nearshoring to maintain flexibility and not have to permanently retain staff.
Depending on the requirements of the project, near-shoring or offshoring regions are more suitable: countries like Poland or Portugal impress with their cultural proximity, language skills and a smaller geographical distance for collaboration. German-speaking talents abroad are also becoming increasingly interesting as they build a bridge between markets. Classic offshoring, for example to India, also remains highly relevant – there is a broad base of IT specialists available there – even for demanding tasks such as IT architecture or project management.
Opportunities: access, speed, scale
Nearshoring and offshoring open up a wide range of opportunities for companies. Where there is a lack of experts at home, specialists are available abroad – for example in growth areas such as cloud architecture, cyber security or AI development. International teams also enable the implementation of 24-hour working models, which accelerates project implementation and increases agility.
In addition to cost savings, nearshoring and offshoring are now essential levers for introducing new systems, optimizing processes and efficiently managing international projects. This opens up opportunities for expertise that would not be available locally, especially for small and medium-sized companies with limited project budgets.
Risks: culture, coordination, communication
Where there are opportunities, it is also important to consider possible challenges. Particularly in an international context, different working methods, communication styles and ideas about quality come together. This diversity can enrich collaboration, but requires conscious coordination and openness on all sides.
If cultural differences are taken into account appreciatively and actively addressed, misunderstandings can be avoided and international projects can be successfully advanced – regardless of how far apart the locations are geographically.
International teams also need clear structures, defined processes and a reliable governance model. If these fundamentals are missing, coordination costs and frictional losses increase noticeably. Even though digital collaboration is now the norm, there is also a trend back towards personal meetings and close coordination – even in international collaborations.
HR between corporate needs and personnel management
For HR departments, nearshoring and offshoring primarily means balancing business needs with your own approach to human resources management. The central question is: Is this a clearly defined project for which specialists are needed in the short term – or should competencies be built up in the company in the long term? For project-based tasks, near-shoring or offshoring solutions offer a flexible and efficient answer.
However, the effort required to internationalize projects should not be underestimated. Where know-how is needed in the long term, it is not just about recruiting, but also about retention, career paths and integration into the corporate culture. Strong employer branding that works across national borders is becoming increasingly important.
It is also clear that these tasks can rarely be accomplished alone. This is precisely where HR consultancies like Michael Page can provide support with international expertise – for example in analyzing talent markets and developing recruiting strategies that are culturally and regionally compatible. The particular advantage lies in targeted advice in order to quickly identify the personnel requirements of a project and fill them accordingly.
Recommendations for action in practice
In order for nearshoring and offshoring to actually become a successful model, companies should proceed systematically:
- Define needs precisely: Which skills are really needed? HR should take on the role of an architect and clearly state the requirements together with management.
- Develop location strategy: Criteria such as language skills, time zones and cultural proximity are often more important than pure cost advantages.
- Set up governance: Clear responsibilities, communication standards and processes are the basis for smooth collaboration.
- Secure talent retention: International employees need transparent career paths, modern working conditions and integration into the corporate culture.
- Promote flexibility: Project-based contracts or hybrid models help to integrate specialists in a tailor-made manner.
Mindset: Build bridges, use diversity
In addition to processes and structures, the right attitude is crucial. Anyone who leads international teams needs intercultural sensitivity, openness and the willingness to communicate on an equal level. The ability to deal with uncertainty and inspire teams to work towards common goals is also important.
For HR, this means building bridges – between cultures, languages and expectations. Managers who not only set rules, but also create trust and actively involve teams, increase the chances of sustainable success.
Conclusion: strategic leverage for the future
Near-shoring and offshoring have long been more than just a tool for cost reduction in the IT and tech sector. They have become a strategic lever for securing competencies, driving projects forward and positioning companies for the future. It is crucial that managing directors and HR managers take advantage of opportunities, actively manage risks and have the right partners at their side. Anyone who accepts this challenge will not only attract skilled workers, but also strengthen innovative strength and competitiveness.
HR Beyond Borders: Bridges between markets, cultures and HR realities
Michael Baier’s post is part of our ongoing series “Global HR Leadership at Scale,” which looks at how international organizations lead, scale and manage HR, talent and mobility across borders in an increasingly complex global environment. The series was launched in 2025 and will continue in 2026 under the overarching editorial framework “HR Beyond Borders”.
The series began with leadership insights from Kameshwari Rao (Publicis Sapient), followed by a strategic analysis of how German SMEs can build sustainable success in India, based on the perspectives of Rahul Oza and Simone Puddu (Rödl, Pune/Bangalore). Further leadership experiences were contributed by David Heffernan (Cognizant), Gabriele Fanta (Körber) and Thomas Wolf, Ingo Todesco and Kelly Stolz (KPMG), complemented by practical insights into scaling global HR systems with Mirabela Ionescu and Milan Battisti (Nagarro).
Rupert d’Mello (Cognizant) dealt with global capability centers in India, Bernhard Muler (BludauPartners) with AI competence at board level, Alexander Wilhelm (InterSearch) gave a current overview of the executive search framework in India, Apoorva Singh (Rödl, Pune) described labor relations and governance in India, Yuri Akahira (Staffbase, Tokyo) gave insights into the changing work culture in Japan. Martin Bitzinger (Mitel) explained the reasons for reshoring production from China to Germany. Barbara Matthews (Remote), explained why global recruiting requires a new operating model.
The interview with Sindhu Gangadharan, Managing Director of SAP Labs India and President of the Indo-German Chamber of Commerce, sent a special message. Under the title “India as Germany’s Strategic Innovation Partner” it analyzes the growing strategic importance of India for German companies – especially in the context of innovation, talent and trust-based leadership.
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