Why Experience in Tough Markets Matters
As the economy continues to shift, more companies are outsourcing product design & development. Here’s what they should demand from a consulting partner.
The economic landscape and the product development world is shifting. With tariff uncertainty many companies are realizing that the path to remain profitable is a balancing act between managing operating / overhead costs of doing business while finding ways to positively grow revenue streams. But history shows that the companies who keep innovating throughout downturns are the ones who emerge stronger when markets rebound.
Having worked through the recession in a high inflation economy in the early 1990s, and again through the Great Recession in the 2000’s, the playbook is unchanged – move to a cash position by selling off excess and obsolete, hiring freeze, or perhaps reducing staff, halting new product development and selling what you have. These are tried and true measures to ride out the storm. The challenge comes when all the levers have been pulled, and the question is asked, “what do we do next?”.
Companies, large and small, are increasingly turning to outside design consultancies to bring products to life. Whether driven by cost savings to reduce COGS / improve margins, offsetting internal resource limitations, access to specialized skills, or the need to move faster, outsourcing has become a strategic advantage when it’s done right.
The ROI of using an outside design and development partner in any economy cannot be a gamble. At DesignThink, we’ve guided clients through recessions, inflationary pressures, and shifting global supply chains. We know how to:
Do more with less, focusing resources on the features and experiences that matter most
Accelerate time-to-market without sacrificing quality
Reduce risk through design-for-manufacturing strategic evaluations & testing
Position products not just to survive today, but to lead tomorrow.
In short: Hiring a firm that’s battle-tested in difficult economies means getting a partner that knows how to innovate under constraints, reduce risk, and deliver market impact even when budgets are lean and uncertainty is high. As such, we offer some suggestions for when you look for an external design partner for your next project.
The Shift Toward External Design Partners
Four forces are driving the outsourcing trend:
Speed-to-Market Pressures: When faced with the saying “Speed-Quality-Cost, pick two”, speed is often a given choice. In competitive industries, waiting 18–24 months for an internal team to launch a new product is no longer viable.
Specialized Expertise: Having breadth of knowledge and depth of experience boosts the team’s capabilities to execute successfully. Sectors like medical, juvenile, and industrial require deep, niche experience that’s expensive to build in-house.
Unbiased Advice: External design partners are not part of any internal dynamics and therefore are able to suggest the direction or course of action that is best for the project based on data vs. opinion or political concerns.
Flexibility in Scaling: The demand to maintain product growth can strain internal resource bandwidth. Consulting teams can expand or contract around project needs, avoiding the overhead of permanent hires while reducing pain points for the internal team.
Why Hire a Design Firm Experienced in Tough Economic Times?
1. Proven ability to do more with less
In recessions or inflationary markets, budgets are tighter, and ROI scrutiny is higher A design firm that’s already navigated lean environments knows how to prioritize critical features, streamline development, and avoid costly missteps
They’ve learned to maximize value without over-engineering.
2. Strategic focus on market differentiation
In downturns, companies that keep innovating often leapfrog competitors who freeze
Experienced firms know how to identify "must-have" vs. "nice-to-have" features, ensuring products resonate with customers under changing economic pressures (e.g., consumers seeking durability, affordability, or efficiency).
3. Faster, smarter decision-making
In uncertain times, speed matters
Firms who’ve worked through downturns understand how to compress timelines, adapt quickly to shifting supply chain realities, and accelerate time-to-market.
4. Risk mitigation and resourcefulness
They’re skilled at spotting risks early (supplier issues, cost escalations, overdesign)
They bring creative problem-solving: using alternative materials, modular designs, or design-for-manufacturing approaches that lower production cost and risk.
5. Long-term perspective
Tough-market veterans understand the cyclical nature of business. They design products that don’t just survive today but position a company for growth when the market rebounds
They’ve seen what works after downturns and can align today’s design decisions with tomorrow’s opportunities.
6. Partnership mindset vs. vendor mindset
In slow markets, clients need partners who invest in shared success, not just vendors billing hours
A firm with recession experience knows how to adapt engagement models (phased programs, design-to-budget approaches) so innovation keeps moving without overextending resources.
What Companies Should Demand From a Consulting Partner
If you’re considering outsourcing in today’s economy, here are six things we believe are non-negotiable:
1. End-to-End Capability
Look for a partner who can take your idea from concept through engineering, prototyping, usability testing, and manufacturing support. If you only require a limited phase or role, you will see better results when using a partner with end-to-end capabilities in a plug-in role. Fragmented vendors can create unnecessary risks and delays.
2. Industry-Specific Knowledge
A medical device has a different development pathway than a juvenile product or rugged tool. Your partner should speak the regulatory and user language of your industry.
3. Proven User-Centered Process
A true design partner doesn’t just make products look good; they design for usability, safety, and manufacturing feasibility from the start.
4. Economic Experience:
Understanding the complete product ecosystem will maximize their involvement and results, even if they are only working on a specific phase in a limited capacity. This will ensure results are aligned with later efforts and business metrics for success.
5. Agility Without Cutting Corners
Speed is essential, but skipping compliance, testing, or engineering rigor will cost far more later. Agility must be paired with discipline.
6. Transparency & Collaboration
The best consulting relationships feel like extensions of your internal team, clear communication, shared decision-making, and no black boxes.
The Payoff
When the right consulting partner is in place, companies not only get products to market faster, they also get better products. Products that perform reliably, delight users, and stand up to the scrutiny of regulators and competitors alike.
Final Thought
Outsourcing product design and development isn’t just a stopgap; it’s a strategic tool. The right partner won’t just deliver a product; they’ll elevate your entire innovation capability.