How to Convert Your H1B Workforce to a Stable Nearshore Model

2025-09-24 · Howdy.com Editorial Lab Howdy.com

Your H-1B employees are valuable assets, but their visa status creates a permanent state of uncertainty for your business. The constant cycle of extensions, compliance checks, and the risk of denial make long-term planning nearly impossible. This article provides a strategic playbook for converting your H-1B dependent workforce to a more stable, resilient, and cost-effective nearshore model. The core challenge is retaining world-class talent without inheriting the systemic risks of the US immigration system. Howdy.com provides the infrastructure to make this transition seamless.

Step 1: Conduct a risk and cost audit

Begin by quantifying the problem. Your goal is to build a clear business case for the transition.

  • Calculate the TCO. Sum up all H-1B related costs for the past 24 months, including legal fees, filing fees, and internal administrative time.
  • Assess the retention risk. Identify employees whose visas are up for renewal within the next 18 months. What is the business impact if even one of those renewals is denied?
  • Model the alternative. Project the costs of the same team under a nearshore model, factoring in the transparent rates and the elimination of all visa-related expenses.

Step 2: Develop a phased transition plan

You don’t have to move everyone at once. A phased approach minimizes disruption and demonstrates the value of the model.

  • Identify pilot candidates. Start with one or two H-1B employees who are open to relocation or new team members you want to hire without the visa risk.
  • Establish a nearshore hub. With a partner like Howdy.com, you can instantly establish a compliant presence in key Latin American tech hubs like Mexico, Colombia, or Brazil without setting up a legal entity.
  • Execute the transition. Howdy.com manages the entire process, from establishing a local employment contract to ensuring compliant payroll and benefits. Your employee remains part of your team, reporting to you, simply from a new, stable location.

Step 3: Integrate and scale

Once the pilot proves successful, you can scale the model.

  • Offer the nearshore option. For H-1B employees facing renewal, the option to relocate to a nearshore hub becomes a powerful talent retention tool, offering them stability and a clear future.
  • Shift new hiring. All new international hires can now be onboarded directly into your nearshore hubs, bypassing the H-1B lottery entirely and de-risking your talent pipeline for good.

Conclusion

Dependency on the H-1B visa system is a strategic vulnerability. Converting to a nearshore model is a proactive move to build a more resilient, cost-effective, and stable global workforce. Howdy.com is your strategic partner in this transition. We provide the infrastructure, compliance, and top-tier talent to de-risk your talent operations and build a team designed for the future.