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WHY COSTA RICA

Nearshoring
in Costa Rica

A complete, data-backed guide
for US companies

Nearshoring · Costa Rica

What is nearshoring?

#1 in the region in average TOEIC and TOEFL scores 2024 reports

Nearshoring is the practice of moving business operations to a nearby country, rather than a distant one (offshoring) or back home (reshoring), to gain time-zone overlap, cultural alignment, and cost savings at once. For US companies, Costa Rica is a leading nearshore destination: strong US business-hours overlap, top regional English (#1 in average TOEIC and TOEFL scores), a high-income and politically stable economy, and 420+ multinationals with operations in the country.

What is the difference between nearshoring and offshoring?

The distinction is distance, and what that distance costs you in collaboration.

Reshoring · Nearshoring · Offshoring
Home turf Distance from home Half a world away
Reshoring
Back to home country

Maximum control, but the highest cost of all.

The sweet spot
Nearshoring
Nearby · Costa Rica for the US

Competitive cost plus overlapping hours and cultural fit.

Offshoring
Distant country · e.g. Asia

Lowest hourly cost, but time-zone gaps slow real-time work.

For functions that need daily collaboration (software development, customer support, finance, engineering), the overlapping workday is often worth more than the last few dollars of hourly savings. That is the core nearshoring argument.

Why choose Costa Rica for nearshoring?

Costa Rica's value proposition is quality and reliability, not lowest price. Companies gain meaningful cost savings on talent versus hiring the same roles in the US, plus advantages that cheaper or larger markets don't offer:

  • Time-zone alignment

    UTC−6 year-round with no daylight saving, giving strong overlap with US business hours (matches US Central Time from Nov–Mar and US Mountain Time from Mar–Nov).

  • Regional leader in English proficiency

    #1 in the region in average TOEIC and TOEFL scores (2024). On the EF EPI 2025 index, Costa Rica scores 516 (#55 globally), ahead of Colombia (480) and Mexico (440).

  • Top-ranked talent among nearshore markets

    44th of 135 on the Global Talent Competitiveness Index 2025, the highest of the major nearshore markets, ahead of Colombia (69th) and Mexico (70th).

  • Stability and safety

    A high-income, OECD-member economy with no standing army and a long democratic tradition: a lower-risk profile than volatile markets.

  • Sustainability built in

    ~98.6% renewable electricity in 2025, a structural advantage for companies with ESG mandates.

  • Proven track record

    $10.9 billion in Precision and Medical Equipment exports in 2025 (47.8% of goods exports), with 420+ multinationals running complex, regulated operations, not just call centers.

Sources: EF English Proficiency Index 2025 · TOEIC/TOEFL 2024 reports · INSEAD / Portulans Institute, GTCI 2025 · World Bank (income classification FY2027) · ICE 2025 · PROCOMER, 2025 close.

Costa Rica vs Mexico vs Colombia for nearshoring

Nearshore destinations compared: Costa Rica, Mexico and Colombia
DimensionCosta RicaMexicoColombia
English proficiency (EF EPI 2025)516 · #55440 · #103480 · #76
Talent competitiveness (GTCI 2025, /135)44th70th69th
Talent pool scaleSmaller, high-valueLargest (~800k devs)Mid (~165k devs)
Time zone vs USCT (UTC−6)CT–PT (UTC−6 to −8)ET (UTC−5)
Income classificationHigh-incomeUpper-middle incomeUpper-middle income
Renewable electricity~98.6%~26.0%~74.1%
Best-fit profileHigh-value services, medtech, regulated opsScale manufacturing, large ITFast-scaling BPO/IT

Sources: EF English Proficiency Index 2025 · INSEAD / Portulans Institute, GTCI 2025 · World Bank (income classification FY2027) · ICE 2025 · SENER (Mexico) · Ministerio de Minas y Energía (Colombia). Developer-pool figures are industry estimates pending validation.

The honest read: if you need the largest possible talent pool or heavy manufacturing scale, Mexico leads. If you need the strongest English and top-ranked talent quality among nearshore markets, and the lowest-risk environment for operations that must run reliably, Costa Rica is the stronger choice.

What can you nearshore to Costa Rica?

Costa Rica supports nearshore operations well beyond contact centers:

Nearshoring is a decision about execution. So is choosing where.

See how Costa Rica turns time-zone overlap and talent quality into operations that actually run.

Frequently asked questions

What is nearshoring?

Nearshoring is relocating business operations to a nearby country to combine cost savings with time-zone overlap and cultural alignment, such as a US company building a team in Costa Rica.

Is nearshoring cheaper than offshoring?

Offshoring to distant regions can have lower hourly rates, but nearshoring typically delivers better total value for collaborative work by reducing the friction of time-zone gaps. Companies often save 50%+ versus US costs.

Why do US companies nearshore to Costa Rica specifically?

Time-zone alignment, top regional scores on TOEIC and TOEFL, GTCI-ranked talent quality (44th globally, highest among major nearshore markets), political stability, and a proven base of 420+ multinationals.

Is Costa Rica good for nearshore call centers?

Yes. Its bilingual workforce and time-zone overlap make it well-suited for nearshore contact and call center operations.

How does Costa Rica compare to Mexico for nearshoring?

Mexico offers greater scale; Costa Rica offers stronger English, higher-ranked talent quality, and a lower-risk, more sustainable operating environment.