2025 marked a turning point in how U.S. companies approached global hiring. What started as a short-term response to H-1B visa limits evolved into a longer-term strategy focused on building compliant, locally established operations in key markets. Companies realized that relying on temporary solutions or third-party hiring models was no longer enough for sustainable growth.
At Cerity Global, we observed this shift firsthand. Many clients moved from reactive hiring through intermediaries to establishing their own legal entities abroad. This approach gave them full control over payroll, benefits, intellectual property, and local compliance, while also reducing risk and improving long-term employee retention.
In this blog, we provide a broad overview of what 2025 taught us, highlight lessons for 2026, and offer a data-driven look at which countries U.S. companies are likely to focus on next.
Global Hiring Shift and Preparing for 2026
1. The H-1B Visa Limits Sparked a Structural Shift
The 2025 H-1B visa cap left thousands of highly qualified engineers unable to join U.S. teams. For many companies, this created a moment of reckoning. Leaders had to ask: “How can we build globally instead of just hiring abroad?”
The result was a shift from temporary workarounds to permanent legal entity setups in countries such as India, Poland, and Mexico. Also, companies are finding out that establishing their own entities abroad allowed them to:
- Fully comply with local tax and employment laws
- Control payroll and benefits directly
- Protect intellectual property and other sensitive assets
- Improve employee experience and retention
Key Takeaway
Sustainable global growth requires ownership, not temporary setup.
2. LATAM Became a Nearshore Engine
Latin America emerged as one of the strongest and fastest-growing regions for U.S. companies in 2025. Mexico, Colombia, and Argentina attracted U.S. companies due to:
- Strong time zone alignment with U.S. teams
- Growing English proficiency
- Cultural compatibility with U.S. work styles
While specific aggregated data for all LATAM countries in 2025 is limited, Mexico’s workforce data highlights steady growth in English-speaking professionals, especially in technology and business services. According to The Instituto Mexicano para la Competitividad (IMCO) Mexico’s tech and engineering workforce participation in export-oriented roles grew by over 15% year-over-year, reflecting increasing engagement in global markets.
As more U.S. firms expanded into LATAM to tap this talent, many initially relied on Employer of Record (EOR) providers to simplify entry. However, as operations scaled and teams matured, companies began reassessing whether these third-party employment structures could support long-term goals.
Although EOR models provided a quick way to enter these markets, companies soon discovered their limitations: high recurring fees, limited influence over HR policies, and potential permanent establishment (PE) risks over time. By mid-2025, many companies began forming local entities, gaining access to:
- Local banking and financial services
- Tax efficiency
- Greater employee retention through direct employment
Key Takeaway
The best nearshore strategy balances flexibility with long-term control.
3. Compliance Moved from Reactive to Strategic
In 2025, compliance evolved from a back-office concern into a strategic priority. Payroll, statutory registration, and data compliance vary widely from country to country. Relying on intermediaries can leave companies exposed to penalties or reputational risk.
Cerity helped clients transition from temporary third-party hiring to locally registered entities with compliant payroll, tax IDs, and employment contracts. This shift not only reduced exposure to permanent establishment issues but also improved trust with regulators and employees.
Key Takeaway
Building your own compliance infrastructure provides long-term stability and credibility.
4. Entity Setup Became the Default Choice
Forward-looking organizations didn’t just hire abroad—they built abroad. Establishing subsidiaries or branch offices offered full control over:
- Payroll and benefits
- Intellectual property
- Tax planning
- Employee experience
Although EORs are useful short-term entry tools, they limit leadership hiring, stock option plans, and regulatory visibility, making them less sustainable over time.
Key Takeaway
In 2026, the most resilient companies will operate through direct entities rather than intermediaries.
5. Global Hiring Is About Sustainability, Not Speed
2025 demonstrated that rapid expansion can create long-term compliance, tax, and cultural challenges. The companies that succeeded were those that:
- Established operations where growth was strategic
- Localized HR and tax functions
- Integrated teams across regions
Key Takeaway
Sustainable growth requires building lasting roots, not temporary branches.
6. Geopolitical Considerations
Beyond cost and talent, companies must evaluate geopolitical stability, government policy, and bilateral relations with the U.S. For example:
- India and Poland – Stable regulatory frameworks, strong government support for tech outsourcing
- LATAM – Some countries offer excellent talent but may experience political or economic volatility
- Ukraine – Strong tech talent but requires careful risk management due to ongoing conflict
Key Takeaway
Political and regulatory stability is as important as cost and talent when planning long-term global expansion.
7. Choosing Strategic Countries for Global Hiring
As U.S. companies plan for 2026, data-driven country selection is becoming essential. Cost, talent availability, and visa accessibility are critical considerations. We analyzed 10 countries across three criteria:
- Cost Efficiency (50%) – How affordable it is to hire and maintain employees
- Tech Talent Availability (30%) – The size and quality of the local talent pool
- Visa Speed (20%) – How quickly foreign workers can legally start
Sources:
- Cost Efficiency (50%): Digitalogy, Qubit-Labs, DistantJob
- Tech Talent Availability (30%): WIPO Global Innovation Index 2025, country-specific startup and outsourcing reports
- Visa Speed (20%): Canada Global Skills Strategy, Singapore Tech Pass, Germany Blue Card programs, and country-specific immigration authorities
- LATAM tech hubs: country-specific startup and outsourcing reports
Related: H1B Visa Changes: The Best Places to Build Tech Teams in 2025-26
Key Insights:
- India: Largest talent-pool, cost-effective, and hassle-free visa process
- Poland & Romania: EU-adjacent talent, moderate cost, stable regulations
- Mexico & Colombia: Nearshore options, time zone alignment, growing tech talent
- Philippines & Vietnam: Emerging hubs with strong engineering skills and cost advantages
These countries combine business-friendly environments, tech talent availability, and political stability, making them ideal for sustainable operations.
Preparing for 2026
Global expansion isn’t a one-size-fits-all solution. Companies must weigh economic, geopolitical, and business factors holistically. Understanding these forces allows organizations to make strategic hiring decisions that are not only cost-effective but also resilient to political and economic shifts.
FAQ Section
Why are U.S. companies expanding globally for tech talent?
With H-1B visa limits and increasing demand for software engineers, U.S. companies are establishing legal entities abroad to secure sustainable, compliant access to global talent.
Which countries are strategic for U.S. global hiring in 2026?
Key countries include India, Poland, Romania, Mexico, the Philippines, and Vietnam, chosen for their tech talent availability, cost efficiency, and political and regulatory stability.
What are the main advantages of setting up a local entity instead of using an EOR?
Local entities offer full control over payroll, benefits, intellectual property, tax compliance, and employee experience, while reducing long-term risks.
How do geopolitical factors influence global hiring decisions?
Political stability, regulatory frameworks, and bilateral relations with the U.S. can affect cost, risk, and long-term growth opportunities, making some markets more favorable than others.
What should companies prioritize when planning for 2026?
Sustainable growth through compliant local operations, strategic country selection, and a balanced approach to cost, talent, and political stability.
How Cerity Global Can Help
At Cerity Global, our goal is to help companies transition from temporary hiring solutions to sustainable global operations. In 2025, we guided clients across the U.S., Europe, and LATAM in moving from third-party arrangements to establishing legal entities. This shift gave them:
- Full control over compliance and payroll
- Reduced risk of regulatory or tax exposure
- Better employee engagement and retention
The lessons from 2025 are clear: global hiring without a local foundation is short-lived. Moving into 2026, the focus should be on building that foundation thoughtfully, one compliant entity at a time.
Ready to expand globally in 2026?
Cerity Global helps U.S. companies build sustainable global operations through compliant entity setups. Let’s plan your 2026 hiring roadmap