Turnkey Operations: What is Mindfacturing®?

What is Mindfacturing®?

Mindfacturing® aims to build a more integrated region by increasing access to a local labor force of cost-beneficial talent in Mexico via a binational employment solution.

Mindfacturing® by PRODENSA is a business model that allows clients to hire talent in Mexico via a binational Employer of Record (EOR) solution.

Mindfacturing® Objective

One of PRODENSA's turnkey operations models, Mindfacturing® provides a streamlined solution to hire employees in Mexico for corporate functions without incorporating an entity or being a direct employer. The solution serves for hiring single experts, or to build teams in Mexico. 

How Does it Work?

Through PRODENSA's Mindfacturing® model, companies can engage with a Mexican Employer of Record (EOR) service to legally employ staff in Mexico without establishing a local entity. This setup allows companies to have employees in Mexico who perform tasks beneficial to operations primarily conducted outside of Mexico. The employees are hired under full legal compliance, creating a scalable structure for office functions.

How to Use Mindfacturing® 

Imagine a U.S.-based tech startup that needs a team of software developers but wants to avoid the complexity and cost of setting up a branch office in Mexico. By using Mindfacturing®, the startup can hire a team in Mexico, where PRODENSA manages all HR and administrative functions just like an extended HR department, without the startup needing a physical or legal presence in Mexico.

With all of PRODENSA's turnkey operational models, there are benefits and limitations.

Benefits of Mindfacturing®

• Simplified Operations PRODENSA manages all HR and administrative functions using proven expertise, allowing companies to focus on core activities without worrying about local compliance.
• Cost-Effective No need for establishing a local entity, which reduces entry barriers and operational costs. Economies of scale in HR services provides additional value.
• Talent Pool Quick access to Mexican talent pool.
• Quick Market Entry Enables companies to quickly hire and deploy staff in Mexico, speeding up the process of market entry and operational setup. 

Limitations of Mindfacturing®

• Limited Functions The economic activities performed by the employees must be eligible for the program; this model is not suited for all business functions.
• Efficiency Threshold Establishing your own administration and legal entity might become more efficient and cost-effective once certain expense thresholds are reached.

Beneficial For:

• Industry Suitability Startups and small businesses looking to test the Mexican market. Specific for: IT development, accounting and administration, R&D, consulting firms, digital marketing agencies.
• Particularly Appropriate for: Tech companies, professional services, and engineering/design fields.

Not Suitable For:

• Local Service Requirements Operations that require on-site service or interaction with Mexican legal entities.
• Business Process Outsourcing (BPO) Clients requiring to outsource entire business functions to a 3rd party, including supervision and KPI responsibilities.

A Turnkey Solution

Nearshoring will most likely continue over the long-term, despite challenges to certain supply chains and the local business environment. Operational partners exist to help navigate the rule changes while facilitating the best practices of world class manufacturing organizations.

Mindfacturing® is one of the turnkey operations models that Prodensa offers for doing business in Mexico. To explore the value of Mindfacturing®, check out these case studies.

Mindfacturing® Case Studies