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. “We advise our clients that you are delivering an experience every single time your customers interact with your digital properties” said Paul Flack, digital experience leader for Kforce Consulting Solutions. “The question is whether the experience was designed in a way that brings you closer or farther away from your business goals.”

Why digital experience matters more than ever

Companies are competing on digital customer experience now that consumer preferences have shifted largely online. Studies show that design, accessibility and interface greatly influence brand perception and can make or break purchasing decisions for a majority of consumers. Almost 90% of customers say that their experience with a company is just as important as its products and services, according to a Salesforce survey. It takes less than a tenth of a second for people to form an opinion about a website that determines if they will 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, director of digital experience at Kforce Consulting Solutions. “It’s critical to have expertise in crafting the digital experiences that create positive perceptions.” Companies that fail to invest are punished for bad design, with up to 89% of consumers switching their business to a competitor after a poor user experience, according to a 2023 report from Zippia. Meanwhile, companies that focus on these details are 60% more profitable, according to the same report. 

90%

Almost 90% of customers say that their experience with a company is just as important as its products and services, according to a Salesforce survey. 

Meanwhile, companies that focus on these details are 60% more profitable, according to the same report. 

89%

60%

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.

Companies that fail to invest are punished for bad design, with up to 89% of consumers switching their business to a competitor after a poor user experience, according to a 2023 report from Zippia.

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."

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Paul Flack

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PRACTICE LEADER

Digital Experience Kforce Consulting Solutions

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Aaron Travis

SERVICE DELIVERY DIRECTOR

Digital Experience Kforce Consulting Solutions

Ellen Oh

SERVICE 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)

Salesforce 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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Published AUGUST 2023

Published june 2023

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