Imagine this: A team meeting is scheduled for 4 p.m. in California. For software developers in Mumbai, its 5:30 a.m. the next dayprime sleeping hours or, at best, the tail end of an exhausting night shift. In Poland, where other team members are based, its already 1 a.m., and the developers are long offline. Awkward timing for a call, to say the least.How do these time zone differences impact overall efficiency? As more projects rely on globally distributed teams with members from every corner of the world, this question is becoming increasingly urgent. This is underscored by a study conducted by Harvard Business School professor Prithwiraj Choudhury. It found that even a one-hour time difference leads to an 11% drop in real-time communication, like calls or video chats, and a 19% reduction in opportunities to connect during the workday. Communication gaps like these ripple through team dynamics, causing stress, forcing employees to catch up outside work hours, and reducing overall efficiency.The cost of poor communication is significant. Grammarly reported that U.S. businesses lose over $1.2 trillion annually due to inefficiencies caused by miscommunication. This is why time zone alignment makes such a big difference. Teams operating within overlapping hours collaborate more effectively, experience less stress, and work more efficiently. This is the driving force behind nearshoringthe practice of outsourcing to nearby regions with overlapping working hours.Harmony across time zones: How nearshoring drives collaborationNearshoring solves the headaches of time zone misalignment. By working with LATAM teams, U.S. companies can collaborate in real time and have fewer scheduling conflicts. The regions expanding tech talent, driven by investments in education and connectivity, makes it an ideal partner. Nearshoring means real-time communication, stronger relationships, and a workforce that boosts both productivity and mental health.As distributed teams strive for efficiency and balance, time zone alignment shouldnt be an afterthought. Prioritizing schedules that support seamless collaboration and reduce stress enables companies to unlock the true potential of remote work. Its about more than convenienceits about creating frameworks that build trust, clarity, and alignment across teams.How? Observing our distributed teams at work, a handful of recommendations come to mind:Implement a collaboration framework: Working remotely across close time zones requires clear guidelines for communication, support, and task ownership. A well-structured framework ensures that responsibilities are clear and minimizes interventionslike being pulled into a late-night Zoom meeting when family time beckons. This clarity and communication allows team members to focus on their work without sacrificing their personal lives.Poor collaboration doesnt just create personal frustration; it can significantly impact business. When teammates are constantly catching up, replying to endless emails, or joining irrelevant calls, stress levels quickly escalate. Stress-related conditions cost U.S. businesses over $300 billion annually due to absenteeism. With the right framework, teams stay productive and maintain mental well-being.Minimize time zone-related challenges: To secure top tech talent, weve expanded our hiring reach to ensure both expertise and seamless collaboration with U.S.-based clients. We focus on time zones that allow overlapping schedules, making nearshoring a clear advantage over traditional outsourcing. Nearshoring eliminates the complexity of scheduling across divergent time zones, enabling real-time collaboration, removing blockers, and supporting time-sensitive solutions.Our team members frequently highlight the mental health benefits of this alignment. Adequate sleep and greater control over their schedules stand out as key contributors to their well-being. Shared schedules also streamline Agile and Scrum methodologies, ensuring planning, daily standups, and retrospectives happen without conflicts.Get Culture Right: While diverse perspectives foster creative problem-solving, mismatched working styles can create friction. In our experience working with distributed teams across LATAM, weve found that clear communication, prompt resolution of blockers, and a strong sense of ownership are critical to success. These traitspaired with a hands-on approach to tackling bottlenecksbuild trust and ensure progress.Nearshoring supports these expectations by fostering a shared work culture where feedback is encouraged, mistakes are treated as learning opportunities, and collaboration thrives. This alignment ensures teams deliver both innovation and reliability.Optimize scheduling with the right tools: As recent studies show, work schedules have a direct impact on mental health. Effective scheduling is key to maintaining mental health and productivity. Tools like Jira and Asana enable asynchronous work by tracking tasks, assigning ownership, and setting clear deadlines. Platforms like Slack and Zoom keep teams connected and ensure communication is well-documented. Integrations between tools, such as Slack notifications for Google Calendar or Jira updates, centralize information and prevent missed tasks. Leveraging these solutions simplifies collaboration and supports balanced, efficient workflows.As we become more attuned to the importance of mental health, its clear that aligning time zones isnt just practicalits transformative. Collaborating with teams in aligned time zones simplifies workflows, reduces stress, and fosters a healthier, more efficient work environment. Thoughtful scheduling, cultural alignment, and nearshoring make remote collaboration effective and enjoyable simply by paying better attention to how we manage the most precious resource at our disposal: time.Nacho De Marco is the cofounder and CEO of BairesDev.