When making large business decisions, it is important to weigh up the pros and cons of how they might affect your business. Choosing between building your in-house digital team and outsourcing this work to an agency is one of those big decisions that directly impact your output. It is crucial to make an informed decision, and research the agency you might outsource to, or put in place a comprehensive recruitment strategy to hire top digital professionals to your business. So, what are the pros and cons to in-house vs agency digital teams? 

The key differences between in-house and agency digital teams

Agencies come in all shapes and sizes, and can be specialist or generalist in their services. It is important to conduct a thorough vetting process when choosing which agency would best meet your business needs. Agency teams are employed externally and will provide an agreed level of work for the business. An in-house team, however, is employed by the business, typically on a permanent contract and operates internally.

One of the most apparent differences between in-house and agency digital teams is their physical presence, disregarding the fact that we are moving towards an increasingly more flexible and dynamic workforce, which is facilitated by technology and a shift in attitudes away from presenteeism. 

The debate over whether in-house or agency is better is neither new nor resolved. We suspect it is less about which is better and more about which is more relevant. There are benefits and drawbacks to both. Often these will depend on the circumstances and requirements of the business. 

The key advantages

In-house

  • Building an in-house team will award you increased control and influence over the team as a whole, and the work that they are doing for the business.
  • You can employ and develop the staff that you are hiring and utilise their expertise to become a more well-rounded business as a result.
  • You will have the ability to be more agile with your work and alter your strategy at a moment’s notice if you need to.

Agency

  • An agency team is paid to deliver an agreed volume of work and will be repeating the process with a number of their clients, so their output may be more efficient and timely than an in-house team.
  • It is possible to scale up and down the amount of work conducted by an agency in line with the business’ requirements and workload, thus providing them with a greater deal of flexibility.
  • Agencies often provide a niche or specialism that a business may not require in-house all of the time.

The key disadvantages

In-house

  • It can be expensive to hire the right talent to your business when you might only require their services for a short amount of time.
  • It can be useful to have an outsider’s point of view when it comes to building a digital strategy for your business. Being deeply involved in your business strategy is good, but it can also mean a lack of overall vision.

Agency

  • It can also be costly to outsource to an agency, and there can be additional unforeseen costs along the way.
  • You’ll have a lack of control over the speed of output and the time it takes to deliver a project. Agencies have multiple clients, so their priorities are split between you and other businesses who require constant attention.

What you should be looking for when outsourcing digital services

As with almost any business decision, there will be a number of factors and drivers behind such a decision. Some key factors to consider are:

  • Cost
  • Length of contract
  • Flexibility to scale workload up and down
  • Specialism and area(s) of specialism
  • Relationship and point(s) of contact
  • Size of agency (and your importance to them as a client)

Building a successful in-house digital team

Most commonly, we have found that candidates move from agency to in-house rather than the other way around. Agency work is often seen as a good place to ‘learn your trade’ before moving into a broader in-house role. As outlined above, agencies often provide a niche; for career progression, candidates often look in-house to broaden their skill set and ensure that they are progressing in their career.

At the more senior end of the market, employers often have a bias, whether justified or not, to hiring digital talent from in-house rather than agency.

The size, structure, and make-up of a successful in-house team will be dependent on the needs and requirements of the business. Effective teams tend to be a blend of generalist and specialists. Generalists provide the breadth of skills and the flexibility to deliver results as requirements and pressures change. Specialists, in the right areas, ensure that key activities are delivered to the highest quality.

The benefits of a diverse and inclusive workforce are beyond question when hiring a successful in-house team, it is essential that diversity and inclusion is top of the agenda both through the recruitment process and ongoing throughout employment.

If you are interested in hiring top talent to your digital team, please get in touch with one of our specialist recruitment consultants today for a confidential discussion.

Andrew Carr
Manager, Michael Page Digital