Choosing the right path for digital product design: In-house or Agency

As more advanced technology continues to become available to the average consumer, businesses need to adapt swiftly to the ever-evolving digital landscape and ensure digital products are designed to meet consumer needs and expectations. 

Whether you’re a service or product-based business, e-commerce or B2B, brands must connect with customers and provide enriching digital experiences that augment, complement or streamline current offerings. 

However, not every business has the same approach to launching impactful digital products to market. 

When it comes to building digital products, companies often face a critical decision: should they build an in-house team or partner with an agency?

This article will explore digital product design and the pros and cons of an in-house vs digital product agency approach to help you make an informed decision for your business.

Digital product design is the process of blending user needs and business goals to craft an intuitive and engaging experience for users on digital platforms such as websites, mobile apps or software. 

Designing a product involves understanding user needs, defining product goals and crafting user experiences and interfaces to ensure they satisfy your customer’s needs, and address specific market needs. 

It goes beyond simply designing a functioning website. Digital product design considers user journeys, interface elements and visual aesthetics to create seamless experiences that increase user satisfaction and contribute to the success of your business while increasing user engagement, retention and loyalty. 

Studies by Nielsen Norman Group show that websites and digital products with intuitively designed interfaces have 30% higher conversion than those with cluttered layouts. McKinsey & Company discovered that companies with a strong focus on design achieve 21% higher revenue growth on average. 

The writing’s on the wall: well-crafted and expertly executed design matters to customers, coupled with user experiences and products that solve their needs. 

Investing in digital product design is not all about looks, it's about building customer relationships and driving business growth. By incorporating customer-driven insights into digital strategies, businesses can unlock success and stay competitive in an ever-changing and growing market. 

Succeeding in product design requires a blend of skilled expertise in research, strategy, creative thinking, problem-solving, experience design and industry knowledge, and it can be tricky to get all these skills together under one roof. There are two approaches in which companies can build digital products: with an in-house team or a digital product design agency.

Having an understanding of the key differences between an in-house approach compared to an agency approach can help you make a well-informed decision for your organisation. Each approach is unique and can impact your project in various ways. 

We’ve seen companies use a combination of models, and this outline should help you decide the best option for your business.

The in-house team approach to digital product design

An in-house team approach to digital product design requires building and maintaining a dedicated group of professionals within your organisation who are responsible for the design and development of your product. 

This approach offers direct control over the project and aligns the team closely with your company’s culture and long-term goals. In-house product teams also have a clear sense of ownership over the project, knowing how this product impacts the company’s bottom line. 

This team will get to know your brand inside out, as they will be working with you, embedded within the organisation, to make quick design decisions based on business objectives and constraints. 

Bear in mind that retaining this talent requires continuous investment in every individual’s professional development and job satisfaction, alongside the higher initial cost of hiring and training team members. 

Setting up an in-house product team requires a cross-functional team comprised of specialists in different industries, and you’ll need to source team members from many disciplines including UX/UI design, strategy, development and project management to drive the outcomes for your project. 

We think an in-house approach is great for organisations that need design as a business function, want to build an ongoing team to be part of the evolving brand, and if there are enough design needs for full-time employee work. 

Vivo’s agency-based approach to digital product design

Outsourcing product design to an agency involves partnering with a specialised firm that provides end-to-end digital solutions, like Vivo Group. Agencies bring a wealth of experience, creativity and specialised expertise to the table, making them an attractive option for many businesses. 

An agency-based approach is highly outcome-focused and creatively-led, to produce digital solutions across different disciplines. The nature of agency work provides exposure to a wide range of projects and industries, which means agencies like us come with a breadth of expertise tailored to each client. 

Developed over several years, our HX® process is a modern hybrid of the traditional waterfall and agile methodologies. With a hybrid approach, we allow for a structured, predictable approach to planning and execution, while fostering flexibility, adaptability and responsiveness to get to better outcomes, faster. 

Our nimble approach allows us to stay flexible and responsive to your business needs and collaborate with you as an agile team. We tap into our proven toolkit of exercises and deliverables and develop a tailored approach according to your unique circumstances. 

We prioritise upskilling in cutting-edge technology to ensure your digital product is competitive and responsive to a growing, evolving market while providing a fresh set of eyes on your project to provide insights and creative solutions that you may not have spotted before. Our team is comprised of experts in their respective fields, from digital strategy to UX/UI design and development. 

Effective collaboration with external partners requires clear, consistent communication and careful planning to align timelines and expectations between the agency and the client. This ensures that all parties are on the same page, minimising delays and misunderstandings.

We think a product agency approach is great for big campaigns or product launches, if your project needs a fresh perspective, to provide additional capacity and expert experience to your existing team. 

Whether you're building an in-house team or choosing an agency, there are advantages and disadvantages to each option. Here are some of our top things to consider.

In-house team
Pros

• Direct control: full control over the project and the team;
• Seamless communication: easier and faster communication with the team;
• Alignment with company culture: better integration with company culture and value;
• Long-term investment: In-house teams can build long-term knowledge and domain experts.

Cons

• Higher costs: significant initial and ongoing costs related to hiring, training and salaries;
• Resource constraints: limited by the expertise and availability of the current team;
• Scalability issues: more challenging to scale the team quickly based on demand.

Digital design agency
Pros

• Expertise and specialisation: access to a team of experts with diverse skills;
• Scalability: easily scale the project team up or down based on project needs;
• Outcome-focused: driven to deliver results;
• Cost-effective: potentially lower costs compared to maintaining a full-time in-house team, as hours and cost can be more flexible. 

Cons

• Communication challenges: offsite team which requires more coordination to meet in-person or online;
• Less control: limited direct control over the project and team, leaving it to the experts.
   

When deciding between building an in-house team or partnering with an agency, first assess the project scope and complexity to determine the required expertise. Evaluating your budget and resources to understand financial constraints can also indicate which approach will suit your needs. 

Additionally, consider your project timeline and how quickly the product needs to be developed and launched. Building an in-house team and setting up internal product systems is a lengthy process, and leveraging an established team and tested product framework at an agency level might be a better option.

Finally, reflect on your long-term strategy, especially if the project will require continuous development and maintenance. Are you likely to continue iterating and building on the initial product over a long period of time? Or will the project be satisfied with a single build?

An agency approach can suit both short-term and long-term product development. At Vivo Group, we provide comprehensive end-to-end digital product design and development solutions for our clients. We also provide a suite of ongoing maintenance and support services for clients to periodically update backend systems and optimise product metrics to ensure you’re getting the most out of your digital product. 

Most importantly, if you’re considering an agency, find a team with shared values, compatible processes and relevant experience. A great agency partner will understand your goals and use their expertise to help refine and elevate them. 
 

Which digital product design approach should you choose?

Both agency and in-house approaches have their unique advantages and limitations. In today's fast-paced digital world, creating a robust and user-friendly digital product is crucial for any business looking to stay competitive. 

By leveraging the power of customer insights, companies can make informed decisions about design investments and reap tangible benefits of an optimised user experience. 

Choosing the right approach depends on your specific needs, resources and long-term goals and whether you want to invest in building an in-house product team or partner with an experienced agency. Understanding your unique project needs and resources, and the differences between the two approaches is crucial to finding the right solution for your business.

If you’re ready to build your digital product, contact us today to see how Vivo Group can bring your vision to life. 

Working with Vivo Group’s team

While there’s no one-size-fits-all solution to digital product design, at Vivo Group we’ve worked with a range of companies, teams and industries to support our clients’ project needs. 

While there are instances where an in-house team is ideal, partnering with a digital product design agency like Vivo Group offers unmatched flexibility and access to specialised expertise. 

We’re proud to partner with industry leaders and innovators to bring their digital products to life. National Storage partnered with us to develop a custom storage size guide tool for their consumer-facing website, which generated positive ROI and increased user satisfaction. 

Are you trying to decide whether to hire in-house or work with an agency? Get in touch to chat with our team of Brisbane web design experts today, we’ll assess your needs and advise the best choice for your organisation.