In Conversation with Jakob Nielsen, part 3/3
UX trends in 2025: emerging regions and agency best practices

In Part 3 of my conversation with Jakob Nielsen, we turn our attention to the global stage, exploring how regional differences and emerging markets are shaping the future of UX. Building on the structural and career shifts discussed in Part 2, we examine the rise of innovation hubs, the challenges of adapting UX practices across diverse regions, and the potential for agencies to transform into product companies. This final article ties it all together, highlighting the opportunities and obstacles in this rapidly evolving industry.  

Innovation Hubs and Agency Transformation

Do you expect innovation hubs to attract more adventurous, change-driven people?

Exactly. But of course, there's no guarantee it’ll work, right? In fact, if every invention succeeds, it just means you weren’t pushing hard enough. You have to fail—not that you want to—but if out of 10 projects, half or at least a third don’t fail, you’re not aiming for advanced enough challenges.   Do you think we’ll see more semi-agencies, where in-house teams act as agencies for multiple companies, dropping sales and marketing due to having stable clients? I don't know if that will work out. It sounds like a good idea because, yes, you save on expenses by not having to meet new clients, and from the client's perspective, there's stability in working with the same team that knows their business. But is it truly stable long term? Even with 10 clients, you’ll still lose some—perhaps due to companies going out of business, changing direction, or a new leader wanting to shake things up. New presidents often re-org to justify their existence, and that can mean building their own in-house teams. If you're lucky, you might lose just one client a year, but two is probably more realistic. So, you’ll always need to find replacements, and for every new client that works, you might need to try three or four to find a solid fit. I just don't think this model will provide lasting stability.

So, you mean it could be a very fragile setup?

I think so. It sounds ideal, and I can completely see why it looks like a great solution. Everyone gets better service and lower prices, which sounds fantastic. But in the real world, there’s always change—internally and externally. For example, let’s say you have a UX department with 50 or 100 people. Even with good staff retention, if you have 100 people, you’ll probably lose around 10% every year, meaning the average stay is about 10 years. But in places like Silicon Valley, it’s rare for people to stay in a job for 10 years, right? So, you’ll end up recruiting 10 new people each year, which adds complexity. You need to think about how to maintain stability while managing turnover, which is inevitable. Companies should focus on retention strategies so people feel inclined to stay longer—maybe six years instead of two. For top talent, offering extra incentives might keep them around for 10 or even 20 years. And among the younger hires, some will grow into your next key players. But planning for turnover is a must. Every time you hire, half of the new recruits will be below the average of your team, meaning that you’re better off if they leave quickly so that you can recruit a new round of different people of whom some will be in the top half.  

 

What do you think about agencies gradually transforming into product companies by leveraging their existing talent and hiring developers?

It sounds great in theory, and if it works for them, good. But going back to your point about different types of people, I don’t think agency folks are necessarily the best at product development. Product-market fit and the complexities of building a successful product go beyond design skills. It’s not that they can’t do it, but there’s an exaggerated belief that design is the most important part. In reality, it’s not. I think design matters—otherwise, I wouldn’t have been doing this job for 42 years—but it’s not the only thing. In a product company, it’s probably not the most crucial aspect for success. Most products fail, and that’s another factor to consider. A product company might launch several products and, even if two fail, one succeeds. But for a small agency, they may only have the bandwidth to try one product at a time, and their failure rate could be higher. Startups often have an 80%–90% failure rate, and while success stories like Facebook exist, they are rare exceptions. Hope isn’t a strategy. A UX team might think they understand what people want, but that’s only a small part—maybe 10%—of what’s needed for a successful product. Strong UX skills are crucial, but they aren’t enough on their own. There are examples of agencies turning into product companies, like 37 Signals, which started as a design consultancy and gradually became a software company. But even they spent years building products for people like themselves before expanding. It’s a long, difficult transition, and those success stories are exceptions, not the norm.  

Regional Differences in UX Design

Can you elaborate further on how regional differences influence UX design?

The world has an entire range of countries. On the one hand, you have rich, high-tech countries where UX maturity has been growing for years. And then, on the other end, you have the poorest countries with almost no technology at all, and you’re not going to see much UX there because it’s essentially a luxury. When you're in survival mode, you just want a potato—something to eat. It doesn’t have to be well-designed or fancy, just something you can consume. As you get richer, though, it’s not just about getting the thing; it's about getting something well designed and easy to use. Wealth brings higher demands, and companies must meet those demands by providing quality. In very poor regions, companies only need to provide something because anything is better than nothing. There are design challenges, like creating better tools for poor farmers, but that’s more in the realm of development aid or charity work. These aren’t the everyday products you'd find in a wealthy country. As countries grow richer, their UX demands also grow. Countries that were poor 20 years ago aren't as poor now. They're not at the level of Switzerland, but they are richer, leading to more demand for UX and tech. As economies advance, everything becomes more complex, and UX becomes essential to simplify these complexities. The human brain remains the same, but richer countries can afford to focus on higher-quality design and assign people to work on things like better user interfaces. When I started my career in Denmark, about 42 years ago, there were only three UX jobs in the entire country. Denmark was small, with about five million people, but still, just three jobs. When I graduated, those jobs were already taken by experienced professionals, so I had no choice but to become a university professor. There were simply no industry jobs in my field. I believe this same growth pattern will repeat in middle-income countries. These countries are on the verge of a UX revolution, like what happened in the USA, Europe, and other wealthier regions. They can learn from the mistakes of richer nations and accelerate their progress. The need for agencies to clump together to build expertise is part of this process, but over time, as demand increases, more opportunities will emerge.

 

Do you consider Asia or Latin America as mid-level regions, or which areas do you focus on?

I think a lot about Asia, especially regions beyond the established wealthy countries like Japan, Singapore, and South Korea. These are exceptions, but most of Asia isn't as rich yet. There are many countries, like Thailand and Malaysia, which are making significant progress and getting very close. Indonesia stands out as a massive country with huge potential. Similarly, in Latin America, the situation is quite comparable—almost all countries are in that mid-level range, striving toward growth and development. I know I have a lot of subscribers to my UX Tigers newsletter in Brazil and Argentina, and that’s one indication that UX is growing there. When I look at these regions, I see a lot happening. The Middle East is another fascinating area, largely because of its wealth. It's true, they have a lot of money, thanks to oil. However, they're still catching up in terms of maturity, as their development is relatively recent. Building that level of expertise and culture takes time. It's not just about the resources; it's about having the experience and history to draw from. As a UX expert, I see this in their tech industries. They haven't had decades of people working on software or UX because, 20 years ago, there wasn’t much software development in places like Dubai. Maybe they started in small ways, but now they’re moving into AI and leveraging their resources—like all that desert space—to build massive data centers. This is where the Middle East’s potential lies, capitalizing on what they have to grow rapidly.

Conclusion

My conversation with Jakob Nielsen highlighted the transformative changes facing the UX industry. As AI redefines productivity, smaller, specialized teams are becoming the key to delivering high-quality, impactful solutions. Jakob emphasized the importance of embracing this shift, suggesting that agile teams can adapt more effectively to client needs and evolving technologies. AI’s role in boosting efficiency is undeniable, allowing teams to achieve more with fewer resources while enhancing creativity and innovation. By leveraging these advancements, agencies can position themselves as strategic partners, offering tailored expertise that complements the growing capabilities of in-house teams. Significant opportunities also exist in emerging markets like Asia and the Middle East, where UX maturity is still developing. By addressing local challenges and fostering meaningful partnerships, agencies can play a pivotal role in supporting businesses as they embrace user-centered design. Building on these insights, at Ergomania, we will continue to strengthen our fintech specialization, leveraging our expertise to solve complex industry challenges. We will integrate AI into our processes to enhance productivity and deliver innovative solutions. By exploring opportunities in emerging markets and deepening our partnerships, Ergomania aims to grow while staying true to the principles of creating meaningful and impactful user experiences. We are grateful to Jakob Nielsen for sharing his invaluable insights and vision. His wisdom serves as both a guide and an inspiration, reminding us that while the tools and circumstances evolve, the core principles of UX remain timeless.