Industry Overview

Animation BPO that is, Business Process Outsourcing in the global animation industry is valued at a staggering US$ 68.4 billion. This figure is expected to rise to almost US$80 billion by 2010. On the other hand, the projected growth in two years’ time is around 16.5%.

The increase in demand can be attributed to the continued production of animation in the entertainment sector which accounts for 74% of total revenues in the global animation industry. In 2006 for example, the entertainment sector of the animation industry generated about US$43.7 billion out of the total US$59.1 billion. This per cent in share is expected to climb up to 77% in 2010, creating bigger and healthier opportunities for animation services particularly in the entertainment sector.  (Source: NASSCOM, 2007)

The continued demand in the global animation market has allowed the Asia-Pacific region to further emerge as a premier destination for animation outsourcing. The major players in the region include China, India, Singapore, South Korea and the Philippines.

The Indian Animation & VFX Industry

The Indian animation industry on the other hand was estimated to have a value of US$ 354 million in 2006 and is estimated to reach about US$ 900 million by 2010. With about 300 Indian animation studios, approximately 70% of the industry’s total revenues come from outsourced services. The industry in India currently employs about 12,000 people with nearly 3,000 working as freelance animators.

The Indian animation industry has managed to position itself to be a major market player in the animation outsourcing industry with only 12,000 employees working full-time for the industry. A key factor for this is India’s significant cost advantage coupled with strategic investments in the country’s animation infrastructure.