The Startup Shortcut: Cut Design Costs by 70% with a Fractional Design Team

Urooj Qureshi, Founder & CEO

Apr, 10th, 2025

7 mins read

Fractional Design Team for Startups

In 2013, Stewart Butterfield had a problem. He was building a new workplace chat app, but instead of hiring a full in-house design team, he took a smarter route. Butterfield partnered with a small UX design agency that acted as a fractional design team—translating his vision into a beautiful, intuitive product experience. That decision led to the creation of Slack, now one of the fastest-growing business applications in history. The design wasn’t an afterthought—it was a growth accelerator.

If you want to build the next Slack, focus on what only you can do: defining the strategy, acquiring customers, and scaling your business. Let a product design agency or UX design agency handle what they do best—bringing your ideas to life with speed, clarity, and quality. Working with a fractional design team doesn’t just save you time; it can save your startup over 70% compared to hiring in-house. That’s more runway, more momentum, and more room to grow.

In the paragraphs that follow, we’ll break down exactly how this model works—and why it’s becoming the go-to approach for ambitious startups. From accessing a full spectrum of design talent without the overhead, to prototyping faster and scaling more efficiently, we’ll explore the tangible benefits of partnering with a UX or product design agency. If you’re navigating how to get high-quality design on a startup budget, this post is your playbook.

One Team, Many Skills – Minus the Management Hassle

One of the biggest advantages of working with a design partner is the breadth of skills you get from a single source. Imagine having a seasoned UX designer, a savvy visual/brand designer, and a creative marketing designer all at your disposal – without having to recruit and manage each role separately. UX and product design agencies often come with multiple professionals under one roof, giving you “more bang for your buck” in terms of combined expertise. In-house, a single designer might have a limited skill set, but a specialized agency brings a blended team that can cover everything from user research and product UX to graphic design services, illustration, and marketing collateral. This means a startup can tackle a wide range of design needs (app UI, website, branding, pitch decks, ads, etc.) through one coordinated team, without the overhead of hiring specialized experts for each niche.
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Equally important, you avoid the management burden that comes with building an in-house team. There’s no need to juggle multiple hires or worry about who will take vacation or quit unexpectedly. Outsourcing design spares you the HR headaches of sick leave, turnover gaps, and ongoing training and mentorship needs. As one analysis noted, when your design partner handles the heavy lifting, it “eases the burden on your in-house team” and frees up your time to focus on core business strategy. In short, collaborating with a trusted UX design agency or product design agency lets startup Founders and Chiefs of Staff reap the benefits of a full design department – diverse skills, flexibility, and reliability – without the hassle of assembling and managing one from scratch.

The 70% Cost Savings – Design at a Fraction of the Cost

For budget-conscious startups, the cost advantages of engaging a UX design agency are game-changing. Design Centered Co.’s own Design Accelerator, for example, is designed to offer substantial cost savings – often up to 70% compared to hiring an equivalent in-house team. While actual savings vary depending on scope and company structure, the model consistently reduces overhead and delivers a more efficient use of resources. It’s no wonder that cost reduction is consistently cited as a top reason (Deloitte Global Outsourcing Survey) companies choose to outsource design work. Simply put, working with a UX design agency allows startups to access top design talent without incurring full-time salaries, benefits, and expensive software subscriptions.

Consider the components of in-house cost that external design services eliminate. There’s the salaries themselves – a single senior designer in the U.S. can cost around $97,000 per year (plus benefits). Hiring a full design team with mixed skill sets could run a few hundred thousand dollars annually, a huge sum for an early-stage venture. By contrast, a flexible design engagement is often a flat monthly fee or pay-as-you-need model, paying only for actual design work delivered.

This efficiency extends to ancillary costs as well. No software licenses to buy – agencies typically come equipped with all the professional design tools needed. That saves you thousands right away: an Adobe Creative Cloud for teams subscription costs about $90 per month per user, Figma’s professional plan is about $15 per editor seat monthly, and even a Canva Pro account is around $120 per year. These expenses add up if you have multiple designers. With a design agency, “only pay for services, not tools” is the rule, since they already have the latest software and equipment.

Startups also save on less obvious costs like office space and infrastructure (no extra desks or high-end Macs to buy for new designers) and on the costly process of hiring itself. The Society for Human Resource Management (SHRM) finds the average cost per hire is about $4,700 in recruiting expenses, and some employers estimate the true total cost (when factoring management time and onboarding) is 3–4 times the position’s salary. That means hiring a designer with a $80k salary might really cost up to $240k when all is said and donez

In summary, working with a UX design agency or product design agency allows startups to convert large fixed costs into flexible, lower variable costs. You get world-class design output for a fraction of the price of building an in-house team. The roughly 70% cost savings isn’t just possible – it’s being approached by startups that adopt agile, design-partner-driven models like our Design Accelerator.

Scale Up or Down at Will – Built-In Flexibility and Speed

The needs of a startup can change quickly. One month you might need a burst of design output for a product launch; the next might be focused on backend work. Partnering with a UX design agency offers built-in flexibility and scalability, allowing startups to increase or decrease their design capacity without the complexity of hiring or layoffs. Traditional in-house hiring can take an average of 42 days per role in the U.S., and onboarding can add another two to three months before a new hire reaches full productivity.
Need a graphic designer fast? Agency teams can be engaged quickly and typically bring immediate value thanks to their experience and streamlined processes. This responsiveness enables startups to stay nimble and adjust resources as needed, supporting rapid iterations and launches. And because these teams are used to working with diverse clients and industries, they’re often able to deliver high-quality work on tight timelines.

What’s more, design partners often bring access to specialized talent on demand. If you need help with motion design, marketing collateral, UX testing, or prototyping, a flexible product design agency can plug in the right expert without you needing to go through separate recruitment efforts. This “elastic” model means you don’t need to overhire for peaks or risk under-delivering during crunch times.

Quality and Strategic Support from Day One

Top-tier agencies maintain a high bar for quality because their reputations—and repeat business—depend on it. Unlike an in-house hire who may need time to ramp up, UX design agency partners typically come in with defined processes, ready-made toolkits, and a portfolio of tested solutions. The result: quality work, faster delivery, and fewer missteps.

In many cases, agencies also serve as strategic partners, helping not just with execution but with broader thinking around branding, user engagement, and product-market fit. Their multi-industry experience allows them to draw inspiration and proven ideas from adjacent sectors, fostering more innovative outcomes.

Finally, a trusted product design agency is often well-networked, and may be able to connect your startup to vetted vendors, developers, or marketers they’ve worked with—providing added value beyond just design execution.

Accelerate Your Startup with Design Expertise

Partnering with a UX design agency, product design agency, or graphic design services provider gives startups a strategic advantage by offering high-quality design talent, flexibility, and cost-efficiency. Whether you’re looking to reduce overhead, expand capacity quickly, or launch with polish, a trusted design team delivers the outcomes without the traditional burdens of hiring.
The success stories of companies like Slack—and many others—underscore how working with the right agency partner can be transformational. For startups operating under tight timelines and budgets, outsourced design support isn’t just a smart move—it may be the difference between getting stuck and gaining momentum. Contact us to learn more about the Design Accelerator and how it can help your startup scale with speed and confidence.
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