.jpg)
New York’s startup scene has always been fast-paced and hyper-competitive. But in 2025, founders and CTOs are facing a new challenge: scaling fast without burning through funding.
With the rising cost of local engineering talent, tighter VC expectations, and a global appetite for innovation, NYC startups are turning to nearshore development teams as their secret weapon.
The average cost of hiring a senior software engineer in NYC has surpassed $185,000 annually, not including equity or benefits. Meanwhile, early-stage VC funding rounds have shrunk by 22% year-over-year, putting pressure on founders to achieve more with less.
Nearshore development is the practice of outsourcing software development to teams in countries that are in similar time zones and offer cost-effective yet high-quality talent, think Colombia, Mexico, Argentina, and even Sri Lanka or Morocco working U.S. hours.
Unlike offshore (often with 10–12+ hour time differences), nearshore teams allow for real-time collaboration, fewer cultural gaps, and faster iteration cycles.
A recent global staffing report found that 74% of U.S. startups now consider nearshoring a strategic advantage, especially those working in product-driven tech sectors.
Hiring a senior full-stack developer in NYC can cost over $180K per year, while a similarly skilled developer in Colombia or India may cost 40%–60% less.
When you go through vetted nearshore staffing partners like Type B Digital, you still get:
A 2024 Deloitte survey revealed that cost efficiency remains the #1 reason companies choose nearshore software development, with quality of talent and time zone alignment following closely.
Nearshore teams are often plug-and-play. They’re used to rapid onboarding and agile delivery. For startups trying to launch MVPs, build new features, or get acquired fast, this speed can be game-changing.
Startups using nearshore teams report launching products 23% faster on average than those relying solely on local hires.
With demand for engineers outpacing supply in NYC, nearshore models open doors to global talent without the legal and operational complexity of hiring full-time employees in other countries.
The U.S. Bureau of Labor Statistics projects a 25% growth in software developer roles through 2031, far outpacing the number of available graduates. This talent shortage drives many New York startups to look beyond their borders.
Type B Digital builds teams from Colombia, Sri Lanka, India, Morocco, and Canada, providing vetted talent across:
Hiring in Latin America or working with teams in Asia who overlap U.S. EST hours gives startups real-time communication without the midnight standups.
Reports show that synchronous collaboration increases developer productivity by 18%, which is why teams prefer nearshore over offshore development for agile sprints and live planning..
When Ferry Pay, a U.S.-based FinTech startup, needed to scale fast without exploding their burn rate, they partnered with Type B Digital to build a nearshore team. Over 12 months, they went from 3 to 13 engineers, achieved:
Explore the full Ferry Pay case study
You can nearshore many roles from technology to strategy to design. The roles mentioned below are the ones we’ve seen the most demand for Nearshoring from New York Startups:
You are not limited to hiring just one or two team members. In fact, you can even build entire pods or squads aligned to your roadmap, and we help you do just that.
At Type B Digital, we don’t just match you with freelancers, we build you a dedicated extension of your product team. You get:
Whether you’re a founder, a CTO, or a product leader in NYC, our teams can help you scale smarter and ship faster.
Let’s build your product without burning your budget.
Your next breakthrough starts here. Contact us.
We are the go-to partner for bold innovators that want to turn big ideas into real-world wins.
