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Is “agent-shoring” the end of software team offshoring?

The days of offshoring software development could be numbered
January 12, 2026

Estimated reading time: 6 minutes

The rise of AI-assisted coding and coding agents is turning the offshoring business on its head.

It didn’t take long: workplaces are starting to slow recruitment of offshore developers in favor of using AI to do the job.

“I think of agent shore as the new offshore. It’s happening, and it’s cheaper than traditional offshore work,” said Lexi Reese, CEO of AI observability company Lanai. By agent shore, Reese is referring to an emerging practice of companies using AI-first processes and agents to fulfill their engineering needs, instead of an offshore team.

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