In House Designer vs Agency: Top 4 Differences for Design Work
To hire in-house or to work with design agency? Read this article to learn about the top 4 differences between in-house vs agency when delivering UX work.
Written by:
David Yap
Jun 22, 2023
Last Update:
Jul 23, 2024
5 mins read
Every business wants good design because it sells like hot pancakes.
However, not all businesses have the same approach to getting the design work done and out to the market.
Some prefer to hire an in-house designer or build their own design and product team, while others choose to outsource their design needs to design agencies.
Both options have their pros and cons, and the best choice depends on various factors such as your budget, goals, resources, and preferences.
The top 4 big differences between in-house vs agency are:
Cost
Combined Expertises
Risks
Numbers of Skill Sets
In this article, we will tell you exactly the top 4 big differences between in-house vs agency when delivering UX work, and help you decide which one is right for you.
#1: Cost
The cost is one of the most significant differences between in-house and agency. Effective project management is crucial to ensure that costs are kept under control and resources are allocated efficiently.
In-house
Hiring an in-house means you have to account for salaries, benefits, training, equipment, software, and other overhead costs. In-house designers can align closely with your company culture, which can lead to better performance and lower turnover rates. Additionally, the recruitment process can be time-consuming and expensive, especially when you’re looking for top talent in a competitive market. Retaining this talent also requires continuous investment in their professional development and job satisfaction.
➕ Complete control over the design process
➕ Potentially deeper understanding & resonance towards your brand.
➖ Higher costs due to salaries, benefits, training, equipment, and overhead costs.
➖ Time and resources needed for recruitment and retention.
Design Agency
Hiring a design agency can be more cost-effective and it eliminates the need for a continuous salary and benefits package, and you don’t have to worry about the costs associated with hiring, training, or managing a team of designers. The agency handles all of these aspects. Furthermore, working with a design agency offers more flexibility and scalability.
You can always adjust your budget and project scope according to your changing needs and goals.
➕ More cost-effective, only pay for services when needed.
➕ Flexibility and scalability in budget and project scope.
➕ No need to pay for software subscriptions.
➖ Potentially lesser control over the design process since agencies typically don’t work in the same office as you.
#2: Combined Expertise
The level and range of expertise available also differ significantly between in-house and agency. Agencies often have experienced designers who bring a wealth of knowledge and creativity to your projects.
In-house Design Team
An in-house designer or a design team can be trained to have a deep understanding of your brand, product, industry, and target audience. In-house graphic designers can develop a deep understanding of your brand and audience, but may face challenges such as limited creative autonomy. However, an in-house team’s skills and experience might be limited by the people you hire.
A single in-house designer may not possess all the knowledge and abilities required to execute everything, which leads to the need of hiring more people to cover all aspects of design, such as UI/UX design, graphic design, web development, animation, etc.
➕ Deep understanding of your brand and audience.
➕ Close collaboration with other departments.
➖ Limited skills and experience.
➖ May need to hire multiple people to cover all design aspects.
Agency
In contrast, an agency can offer the all-in-one design services and skills that you may not have access to in-house. While an agency offers a wide range of skills, an internal design team can provide more consistent and brand-aligned designs.
An agency typically has a team of experts who specialize in different areas of design and who are constantly updating their knowledge and tools according to the latest trends and best practices. This breadth of expertise can bring fresh perspectives and creativity to your design projects.
However, an agency is usually not as committed as an in-house team. They may also have multiple clients to work with at the same time.
➕ Wide range of design services and skills.
➕ Fresh perspectives and creativity.
➕ Battle tested from working with various different industries and projects.
➖ May have other clients to attend to.
➖ You cannot expect extreme commitment like in-house team members would.
#3 Risks to Company Culture
The amount of risk involved is another key difference between in-house and agency.
When you hire in house, you must also consider the potential consequences of overworked designers and the importance of addressing these issues.
In-house
Hiring an in-house means you have to deal with the challenges of staffing, training, and retaining your design employees. In-house designers can offer deep knowledge of your brand and product, but retaining them can be challenging due to high turnover rates. Regardless of who you hired, training and developing your design staff can also be costly and resource-intensive.
Moreover, retaining your design employees can be challenging due to high turnover rates and employee dissatisfaction.
If things go wrong, leaders often take the blame first, you bear the responsibility and accountability for your design results. You also have to deal with any issues or conflicts that may arise within or between your design team members.
➕ Full control over the design process.
➕ Direct accountability for design results.
➖ Challenges of staffing, training, and retention.
➖ Full responsibility for design results and team issues.
➖ A great hire can be extremely game-changing but a wrong hire is very costly.
Agency
With agency, you don’t have to worry about staffing, training, or HR issues. The agency will take care of finding, hiring, and managing their own team of designers who are qualified and experienced in their fields.
Furthermore, you can share most of the responsibility and accountability for your design outcomes with the agency. You can set clear expectations and goals with the agency, and hold them accountable for delivering on them.
However, hiring an agency is not all roses.
You have to trust the agency to represent your brand’s interest in the best possible way. You also have to rely on the agency to provide you with accurate and timely data and reports on your design performance. While an agency can handle staffing and HR issues, an internal team can offer better cultural fit and quicker ramp-up times.
➕ Reduced staffing and HR issues.
➕ Shared responsibility for design outcomes.
➖ Need to trust the agency to represent your brand well.
➖ Dependence on agency for accurate performance data.
#4: Number of Skill Sets
The number of skills and resources available is another crucial difference between in-house and agency. An in house design team can develop a deep understanding of your company's unique brand identity and products.
In-house
An in-house designer usually only comes with a limited number of skills. You may not be able to afford or find all the specialists or generalists you need to cover all aspects of design. You may also not be able to access or afford all the tools and technologies you need to execute and measure your design projects.
➕ Potential for deep understanding of your brand and audience.
➕ Close collaboration with other departments.
➖ Limited skill set and resources.
➖ May not be able to cover all design aspects or afford necessary tools.
Agency
Conversely, an agency can have a larger number of skills and resources at their disposal. An agency can have a diverse and talented team of designers who can handle any design challenge or opportunity.
An agency can also have access to the latest and most advanced tools and technologies that can help you optimize and improve your design performance.
However, having more numbers does not necessarily mean having better quality or results. You also have to consider the relevance and effectiveness of the skills and resources provided by each option.
➕ Larger skill pool and more resources.
➕ Can handle various design challenges and use the latest tools.
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About our author
Written by
David Yap
David is the founder of Zensite, a product design agency based in Singapore. Since 2016, David have been involved in many UI UX related topics covering user experience, product design, digital experience and also founded Friends of Figma, a Figma Community in Malaysia.
Reviewed by
Fay Mira
Fay Mira is an MD with digital health experience and expertise in UI/UX based in Malaysia. With her experience working with a health tech company, she is currently the experience designer in Zensite since 2016.
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