Is an in-house design studio right for your company?

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The pros and cons of establishing an in-house design studio

Design plays a vital role in today’s competitive business landscape to attract customers, drive sales and foster brand loyalty. Digital experience is no longer just about aesthetics—it is a strategic tool that directly impacts the bottom line. According to research from McKinsey, building a modern, successful design department is one of four actions a CEO can take to drive revenue growth at twice the rate of industry peers. “A high-performing, agile and innovative design studio can be a game changer in today’s competitive landscape,” said Elizabeth Linstrom, director for digital solutions delivery at Kforce Consulting Solutions. “Beyond driving measurable revenue through enhanced customer engagement, best-in-class design creates a brand experience that customers remember, return to and share. “Innovative and engaging design excellence becomes a strategic asset, fueling growth, differentiation and long-term brand equity.”

Why digital experience matters more than ever

Companies are competing on digital customer experience now that consumer preferences have shifted largely online. Despite that, Adobe reports that only 45% of organizations are meeting customer expectations for a cohesive customer experience. Studies show that design, accessibility and interface greatly influence brand perception and can make or break purchasing decisions for a majority of consumers. It takes less than a tenth of a second for people to form an opinion about a website that determines if they stay or leave, according to research published in Behavior and Information Technology. “Every moment of the customer’s experience shapes their perception of your brand, for better or worse,” said Aaron Travis, digital director at Kforce Consulting Solutions. “It’s critical to have expertise in crafting the digital experiences that create positive perceptions.” A 2025 study by Verint found that 78% of customers will switch to a competitor after a terrible customer experience, with 72% saying they would tell family and friends not to purchase from the offending company. That said, when users have an amazing customer experience, at least 81% are likely to make repeat purchases and recommend the company to family or friends, according to the same study. And close to three in four users are inclined to leave a positive review.

45%

Only 45% of organizations meet customer expectations for a cohesive customer experience.

86% of respondents believe AI will have a transformative impact on customer experience.

78%

86%

Advantages of an in-house design studio

This knowledge translates directly into time and money saved. Imagine developing packaging graphics for line extensions across a company’s various product brands. Each has established brand guidelines. This type of work demands control over design elements such as logos, typography, color schemes and visual guidelines in the company’s brand standards. “An in-house team can move quicker and with more authority,” said Ellen Oh, a digital experience expert at Kforce Consulting Solutions. “Your company can expect shorter turnaround times for design projects with rapid iterations, immediate revisions and timely delivery. This agility and accelerated speed to market is particularly beneficial for businesses in fast-paced industries.”

Successful design departments share a hallmark trait: organizational integration. McKinsey’s research found that companies across multiple industries see improved outcomes when they embed designers into cross-functional teams. Such highly valued close collaboration between the design team and other departments is a primary advantage of the in-house design studio. Internal designers are readily available with file access. They know your company’s workflow and processes well and they are naturally keyed into strategy and culture. This deeper connection to company culture creates a higher sense of ownership and increases transparency into a project.

Agency designers will learn as much as they can about your brand, but their knowledge is spread across multiple clients and projects. Because in-house design teams work solely for you, they know your brand inside and out. They have a deeper understanding of your company’s mission and vision, goals, products or services, target audience, marketing positioning, values and voice.

Communication & CollaborATION

Focus & purpose

EfficiencY

Control

Agency fees add up. A blended agency rate could be more than $200/hour with top level talent charging as much as $750/hour. Constantly outsourcing design work can accumulate expenses over time without building capability and knowledge. With an in-house team, there are no recurring fees or markups, and the company retains full control over the design process. Additionally, an in-house studio can handle a broader range of design needs, reducing the need for outsourcing and associated costs.

78% of customers will switch to a competitor after a terrible customer experience.

Communication & CollaborATION

Focus & purpose

Efficiency

Control

Skill set limitations

Initial Investment

DifficultY attracting & retaining talent

An in-house design studio can create long-term cost efficiencies, but it costs money upfront. Companies need to consider the initial investment to hire skilled designers, equip them with the necessary software and hardware, and allocate office space. These costs can be substantial, especially for small- or medium-sized businesses with limited resources.

Initial Investment

Some companies might not realize how diverse design and its capabilities are. Agencies often employ a wide range of designers, targeting different expertise and specialties. In contrast, an in-house design team may have skill gaps. If a company hires an expert with niche skills, they are still responsible for that headcount when demand for their specialty dips. For example, a company might have traditionally focused on the design of physical products—their color, materials, finishes, form and function—requiring an army of industrial designers. As demand shifts to more digital experiences, the company hires more UX designers and might struggle to keep their industrial designers busy.

Skill set limitations

Initial Investment

Good designers are constantly honing their craft and adding skills to their portfolio. Not being able to give talented designers a steady stream of exciting and experience-building projects could create higher turnover. On average, 54% of designers leave or change jobs in under 2 years, according to Colorlib. A set design staff can also lead to creative stagnation. Internal designers may become accustomed to the company's preferences and tend to produce designs aligned with previous successes, potentially stifling fresh and diverse perspectives. 

Difficulty attracting & retaining talent

An alternate approach

Companies that establish in-house design teams will eventually find they have a finite capacity. This can be particularly difficult during periods of high demand. Oh witnessed these challenges first-hand as part of an in-house design studio at a large enterprise. “We still had to use a large number of contractors and freelancers, which made the quality of work unpredictable,” Oh said. “We struggled with getting the right type of designers at the right time whom we trusted to do the work.” Companies don’t have to choose one extreme: limit themselves to the challenges of working with an agency or rely only on their own staff. They can implement a hybrid model in which their in-house design team is supplemented by outside experts. In this model, a dedicated team of consultants is created and embedded within the company, quickly granting the same benefits as an in-house team without the time and risk associated with those efforts. A third party provides a trusted network of talented professionals along with strategy, project oversight, guidance, scalability and leadership. This approach supports a unified design team, even if they’re distributed across the organization. Company leadership can rely on a unified team of professionals, both internal and external, who combined have the right portfolio, niche skills and fresh perspective. "What I value most about the Kforce Consulting Solutions model," Oh said, "is the ability to assemble the right team to solve the problem with the flexibility to scale capabilities up and down through a network of trusted consultants."

Connect with me

Aaron Travis

SOLUTIONS DELIVERY DIRECTOR

Digital Experience Kforce Consulting Solutions

Ellen Oh

SOLUTIONS DELIVERY MANAGER

Digital Experience Kforce Consulting Solutions

Companies have three ways to build design competencies:

Businesses that traditionally outsourced design work to agencies are finding in-house studios more attractive as demand for design work increases at a faster pace. The Association of National Advertisers’ (ANA) latest survey found that 82% of ANA members have an in-house studio in 2023—up from 78% in 2018, 58% in 2013 and 42% in 2008. In-house design studios are increasingly popular, but companies considering this path should carefully consider their specific needs, resources and goals. This article will explore the advantages and challenges of in-house design studios to help you determine whether this solution aligns with your company’s overall business strategy and objectives.

1. Hire an external agency

2. Create a dedicated in-house design studio

3. Implement a hybrid model: an in-house design team supplemented by outside experts

Ready to start your own in-house design studio or looking to maximize the value of your studio investment?

Kforce Consulting Solutions can help you determine what to do next. Our experts have experience in assembling and overseeing in-house design teams, as well as working with clients to create a long-term design culture that transforms their business.

twice the rate of industry peers

Association of National Advertisers’ (ANA)

survey

It takes less than a tenth of a second

Zippia

Colorlib

MEET THE AUTHORS

Challenges of an in-house design studio

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updated December 2025

Published june 2023

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Assets for any model: AI tools, nearshoring and offshoring

Regardless of whether a company uses an in-house, hybrid or external design team, there are several resources available to make the design process more robust and cost-effective. Integrating AI into the creative and design processes grants companies the agility and capability to produce high-quality creative that keeps up with the market and customers, without demanding more from the team. Meanwhile, nearshoring or offshoring creative work can result in higher levels of output and cost-savings. AI must factor into the design process, no matter what model a company uses.

External design teams build their AI policies and tools around meeting the demands of multiple customers. Learning how an agency uses AI and communicating needs and expectations upfront is critical.

“A major telecom client of ours wanted to keep their agency of record to do all the large TV, radio and brand campaign work but desired a different solution for delivering the production work that was less expensive, less time consuming and had greater agility and speed to market,” Linstrom said. "Kforce initially implemented a hybrid studio model to manage the production work efficiently. After fully optimizing this workstream, we partnered with the client to integrate additional design functions and introduce automation tools." When considering an in-house or hybrid design team, having a seasoned strategic partner makes a noticeable impact on the result, Linstrom said. Careful planning minimizes disruption to business during the transition process. And breaking the process into phases makes it easier to iron out the issues that arise during transformation. That said, businesses should structure their transition plans according to their individual needs. Nearshoring and offshoring certain creative roles are additional options to reduce cost and redirect that spending on internal priorities, creative and talent. Both options maintain a high level of creative output that can be further augmented by automation and/or AI enabled tools.

External

In-House

In-house, a company can take full control of AI in the design process to ensure the work is tailored to the specifics of the individual vision and brand.

Hybrid

In a hybrid model, AI can automate parts of the design process that would be expensive if sent to an external agency.

Source: Adobe 2025 AI and Digital Trends 

Source: Verint State of Customer Experience 2025

Source: 2024 HubSpot State of Service Report

Source: Adobe 2025 AI and Digital Trends 

Source: Verint State of Customer Experience 2025

Source: 2024 HubSpot State of Service Report

Connect with me

Elizabeth Linstrom

SOLUTIONS DELIVERY DIRECTOR

Digital Experience Kforce Consulting Solutions

Connect with me

Aaron Travis

SERVICE DELIVERY DIRECTOR