A new outsourcing fever has gripped India

India's animation sector is witnessing a major boom. Overseas entertainment giants like Walt Disney Imax and Sony are increasingly outsourcing cartoon characters and special effects to Best Animation Company in India for commercials and computer games.

So what makes India a hub for animation? Why is the sector experiencing exponential growth? In this special series, we take a look at what makes India shine in the world of animation.

3d animation services in India

The total cost for making a full-length animated film in America is estimated to be $100 million to $175 million. In India, it can be made for $15 million to $25 million.

C K Prahlad, an animation consultant based in Bangalore, says the biggest advantage is the cost factor. "Indian animation companies are charging extremely low rates compared to other countries. That is attracting the Hollywood companies to outsource their animation film series to the Best Animation Company in India," he said.

Major US animation studios and producers are realizing this huge cost advantage that India offers, that’s why they are approaching to Best Animation Company in India

"Due to changing viewing habits, channels or networks are being forced to bring down license fees. As a result, the volume of work has been dropping.

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

According to the National Association of Software and Services Companies (Nasscom), the total revenues of the 3d animation services in India were estimated by between $200 million and $300 million in 2004.

Animation Company in India

Nasscom estimates the animation sector grew at a rate of over 20 per cent last year. "Demand for animation production services from India is growing with the emergence of an organized animation production sector, with state-of -the-art of work required for international TV program production, at substantially lower costs," a Nasscom report said.

Last year, a Nasscom study on the 3d animation services showed that the global animation production market is set for major growth. The study, which is based on multiple statistical projections on the market, from segments such as industry sources, Pixel Inc and Arthur Andersen (Study on the Entertainment and Media sector) forecast that the global animation market would generate revenues worth $50-70 billion this year.

But which are the countries that India is competing with in getting animation outsourcing?

"Primarily, we are competing with China. But even here, our quality standards are much higher than Chinese studios," argues Jayakumar.