North America emerges leader in Animation outsourcing, Bullish on India : Report

India being a preffered destination for animation outsourcing is a known & welcome fact. Time and again the re-assertion of the same, still does sound good. A report published by Digital Vector states that North America is the largest consumer for Animation Content and Asian countries particularly India is amongst its most preffered destinations for outsourcing. There are other asian countries like Korea, Phillipines and Taipei in the fray too, but the cost factor swings it in India’s favour. Synopsis (from The rapid advancement of technology has made computer animation available to the masses and the animation industry is one of the fastest growing industries. Owing to the increase in computing power and the reduction in computing costs, we are seeing more and more of the global computer animation production output taking place outside of North America. This is a pattern we have seen for the past three years, with the resultant growing importance of the outsourced computer animation production market. This market is increasingly being tapped by North American film and television program producers. The major factor behind this shift of computer animation production to the Asia/Pacific region continues to be the availability of low cost, powerful computer animation platforms and much lower labour rates in the Asian and Pacific Rim countries compared to North America and Europe. The bulk of the outsourcing happens for 2D animation content with some amount of 3D content. The global computer animation production industry is very fragmented and the total number of players in this industry runs in excess of 4000. Most of the small and medium players are located outside of North America and execute outsourced animation projects. The costs of getting work done in countries such as Korea is said to be roughly half that incurred in production houses in developed countries. In countries such as the Philippines and India, the costs are even lower (25 – 30 % of the cost of production in developed countries). The low local labour costs in these countries means that they can offer computer animation production services to American and European producers at very attractive rates. The cost competitive advantage along with the delivery of good international standards of animation by studios in India has encouraged these production houses to look towards India as the future destination to outsource their assignments. There is a considerable increase in the 2D and 3D animation outsourcing to India. Due to the extremely competitive climate as well as the global slow-down, some of the large studios in the US have implemented large amounts of layoffs of animators and artists. India is slowly emerging as an alternative to Korea, Philippine and Taipei for animation outsourcing. India is also emerging as a post-production hub for animation.