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Animation Production in India – A Global Opportunity for Outsourcing

The Indian animation industry is experiencing a major boom. Foreign entertainment giants like Walt Disney, Imax and Sony are increasingly outsourcing cartoon characters and special effects to India. Other companies outsource animation from India for commercials and computer games.

So what makes India an animation hub? Why is the industry growing exponentially? for this, we look at what makes India shine in the world of animation.

India has a large English-speaking workforce base: animation, which requires familiarity with the English language, benefits when the work is outsourced to India. A number of animation companies in the country are also creating a skilled workforce for the animation market through various training programs.

Presence of good studios: India has the second largest entertainment industry in the world, after Hollywood. The country’s animation studios provide a wide range of high-quality, low-cost software engineers. A number of Indian animation companies have set up high-tech studios (equipped with state-of-the-art hardware and software) to run projects overseas.

Low cost of entertainment services: The main reason why foreign entertainment companies flock to India is the cost advantage that the country offers. For example, in the United States, animators can cost around $125 per hour; in India they cost $25 per hour. Toonz Animation offers animation at rates 25-40% lower than other Asian studios and much lower than US studios.

A new outsourcing fever has gripped India.

Global entertainment majors like Walt Disney, Imax, Warner Brothers and Sony are signing huge deals with Indian animation companies.

And Indian cities like Mumbai, Chennai, Bangalore, Hyderabad, Bhopal and Trivandrum have become the country’s main entertainment hubs.

The total cost of making an animated feature film in the United States is estimated to be between $100 million and $175 million. In India, it can cost between 15 and 25 million dollars.

Major US animation studios and producers are realizing this huge cost advantage that India offers.

“Due to changing viewing habits, channels or networks are forced to lower license fees. As a result, the volume of work has decreased.

In this situation, India’s advantage of low production costs could be a boon for the domestic animation industry,” said Margaret Dean, head of Sony Pictures’ family entertainment group and consultant to from various animation studios in the United States, during a recent visit to India.

According to the National Association of Software and Services Companies (Nasscom), the total revenue of the animation production services industry in India was estimated to be between $200 million and $300 million in 2004.

Nasscom estimates that the animation industry grew at a rate of more than 20% last year. “The demand for animation production services from India is increasing with the emergence of an organized animation production sector, with advanced labor required for the production of international television programs, at significantly lower costs. lower,” a Nasscom report said.

Last year, a Nasscom study of the animation industry showed that the global animation production market is set for significant growth. The study, which is based on multiple statistical market projections from segments such as industry sources, Pixel Inc and Arthur Andersen (Entertainment and Media Industry Study) forecasts that the global market for animation would generate revenues worth $50-70 billion this year. year.

But which countries does India compete with for animation outsourcing?

“We mainly compete with China. But even here, our quality standards are much higher than those of Chinese studios”

And Indian cities like Mumbai, Chennai, Bangalore, Hyderabad, Bhopal and Trivandrum have become the country’s main entertainment hubs.

A large number of companies across these cities have dedicated themselves to the outsourced world of animation and special effects. These include Toonz Animation, Crest Communications, Maya Entertainment, VRS RED Entertainment, Silvertoon Studio, UTV Toons, Zee Institute of Creative Arts, 2NZ Studios, Pentamedia Graphics, Prasad Studios, Acropetal, JadooWorks, Color Chips, and Heart Animation.

Experts say the future of animation in India is bright. “India has great stories, good cartoon characters from mythologies, good artists and technicians. Above all, we offer a competitive price, which no one can match.”

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