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CASE STUDY

Catalyzing Software Development Growth through Employer of Record in Mexico

PROJECT
Co-create talent strategy and take full responsibility of client's talent administration in Mexico
WHAT WE DID
Provided an Employer of Record solution via a pre-existing and certified entity in Mexico
CLIENT
Financial software development company seeking to diversify their European talent structure
TIMELINE
Prodensa hired the first position in Mexico via Mindfacturing® six months after initial exploration

THE CHALLENGE

A prominent software development company, specializing in crafting comprehensive solutions tailored for the financial services sector within U.S. communities, faced a pivotal point in its growth trajectory. With a vision to extend their innovative services while maintaining a competitive edge, the company sought to diversify its European talent supply.
The company found itself at a crossroads, aiming to broaden its talent horizon to sustain its growth and innovation capabilities. Their strategic objective was to investigate Mexico's potential as a vibrant hub for software development talent. The company aspired to not just build a team but to establish a strong employer brand that would resonate well within the local market. However, before making significant investments towards a mid-term strategy, it was imperative to assess the market feasibility and understand the intricacies of venturing into a new geographic territory.

CHALLENGES

  • Relatively low budget for overhead since they are a funded start-up
  • No local executive or managing director in Mexico
  • Limited appetite for an investment in a Mexican subsidiary
  • Unknown talent market, compensation structure, working conditions, legal requirements, etc in Mexico
  • Needed a quick start and aggressive ramp-up of team in Mexico
  • Company wanted to transmit certain incentives and culture 
  • Unkown location for a worksite in Mexico
  • Unknown tax, payroll, cost and other factors of different operations in Mexico
PRODENSA'S SOLUTION

EMPLOYER OF RECORD

Prodensa stepped in as a strategic partner, offering its seasoned expertise in navigating the complexities of setting up operations in Mexico. The consulting firm provided a comprehensive service package designed to lay down a solid foundation for the company’s expansion plans.

Market Feasibility and Strategy Development: Prodensa offered a deep dive analysis into Mexico's software development landscape, highlighting the opportunities and challenges. This initial phase was crucial for the software company to make an informed decision regarding their expansion. Prodensa executed a targeted talent strategy, validating a pool of high-caliber professionals ranging from Junior to Senior Software Developers, Quality Assurance Testers, Project Managers, and Business Analysts.

Creation of Worksite and Culture: Capitalizing on Prodensa’s Employer of Record service, Mindfacturing®, the software development company successfully established a vibrant worksite in Mexico. This approach enabled the company to inaugurate their presence in the Mexican market without the immediate need to set up a subsidiary, while still fostering a culture that would attract top talent. Prodensa is known as an Employer of Choice in Mexico, providing the client a strategic partner to accelerate their goals.

Operational Support and Growth: Prodensa provided an all-encompassing support to bring their project to life. Furthermore, Prodensa's consulting team supported the client to understand their potential growth strategies, and the impacts of the different operational structures on payroll, taxes, incentives, flexibility, cost, etc.

The collaboration with Prodensa resulted in the successful creation of a robust software development team in Mexico. The use of the Mindfacturing® model has not only served as an effective bridge to the company’s broader ambitions but also entrenched their reputation as an employer of choice within the local tech community, in record time.

Continued Growth and Success: The software company has not only established a significant presence in Mexico but continues to expand its team through the strategic partnership with Prodensa. The choice to operate and grow via Mindfacturing® has proven to be a prudent decision, delivering on the promise of flexibility, scalability, and operational excellence.

Strategic Stepping Stone: The company's operation in Mexico, facilitated by Prodensa, remains a critical component of its global strategy. The success of this initial venture has laid the groundwork for possible future transitions into establishing their own subsidiary, with Prodensa’s guidance ensuring a smooth evolution.

CONCLUSION

Leveraging Prodensa's Employer of Record service, the software development company has successfully diversified its talent pool, enriching its capacity for innovation and global competitiveness. This case study exemplifies how thoughtful, well-executed strategies and partnerships can transform challenges into growth opportunities, setting a new benchmark for success in the global tech industry.

SCHEDULE A MEETING WITH AN EXPERT

About Prodensa's Employer of Record service, Mindfacturing®.
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