Monday, May 19, 2003 |
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Feature |
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Animation outsourcing
may be the next big thing
Sumeet Chatterjee
AFTER
carving out a niche for itself in the global technology outsourcing
market, India is fast going up the animation-outsourcing ladder by
capitalising on its vast pool of low-cost skilled professionals.
India is a recent entrant
in the global animation scene but demand for its production services is
growing at a fast pace.
And with local animation
design studios gradually establishing their credentials overseas and
building their skill sets in this high potential global market,
animation production outsourcing to India in poised to boom, believe
experts.
"We have all right
ingredients to become a worldwide powerhouse in animation outsourcing
business," said P. Jaykumar, director (operations) of Kerala-based
Toonz Animation India.
"Indian animation
companies have the raw talent, ingenuity, cultural heritage, language,
low labour rates and entrepreneurial spirit. We have the cost and
language advantage over numerous other competing countries,"
Jaykumar told IANS.
"If Indian studios
continue to improve the quality of their work and if they manage their
businesses well, animation will become a major industry in India."
Set up with an investment
of $7 million in 1999, Toonz Animation has emerged as one of the leading
players in the nascent Indian animation market. Besides focusing on
developing its own cartoon animation, skits, serials and full-length
feature films for the export market, Toonz also has a co-production deal
with Britain-based Tree House Production for a fun animation series.
According to an animation
industry study report, Indian animation production costs are the lowest,
as compared to production rates in the USA, Canada, South Korea and the
Philippines — the major global centres for animation production.
While the rates for
production of a half-hour television animation programme would be around
$ 2,50,000-4,00,000 in the USA and Canada, it is in the region of $
60,000 in India, the report says.
The total animation
production by Indian companies is expected to rise from $ 600 million in
2001 to $1.5 billion by 2005, while the total global animation
production would touch $51.7 billion. "Indian animation producers
are barely skimming the tip of the global animation production services
iceberg," says a study report of the National Association of
Software and Service Companies (Nasscom). "A vast unexplored
potential still exists that can be tapped by Indian players."
The animation market in
India today is characterised by the presence of multiple players
including Crest Communications, UTV Toons, Pentamedia Graphics,
Padmalaya Telefilms, Moving Pictures and Toonz Animation. The animation
studios are catering to the requirements of segments such as feature
films, television programmes, advertisements and computer games.
Currently, Indian animation players are predominantly catering to the
needs of overseas television programme production companies with a
relatively low penetration in areas such as feature film production and
gaming. "Trends in the global animation market shows increasingly
companies are outsourcing their requirements to markets such as Asia
Pacific," says Alice Manuel, head (production) of Escotoonz, an arm
of New Delhi-based industrial group Escorts.
Manuel
says outsourcing is also happening because studios are coming up in
developing markets that offer world-class infrastructure and quality
processes to produce animation work that’s delivered on time and
within estimated cost.
India is, however, up
against substantial competition from countries within the Asia Pacific
region such as the Philippines, Taiwan and South Korea that have been
active in the animation production market for a longer period.
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