But the bigger question to ponder is why these companies are resorting to setting up subsidiaries rather than
outsourcing which would have been a cheaper option for these companies. Tim Sarnoff, President Sony Pictures Imageworks, reason, “This way we would have a better control over the output of the product. Also, our staff in Culver City (Los Angeles) and India can work on different parts of the same projects making use of the same kind of infrastructure…” There are also some other advantages that these companies would be looking at gaining. With the boom that has been there in the animation scenario, there is plenty of trained staff that would be working at almost less than half the price. Well, it would mean higher investments now, but the bigger studios would now be looking at churning out greater outputs. Hence, in the long run, they would be able to save greater costs.
In short, there would be many more companies who would be looking at following this trend in the coming years. Even various state governments have sensed great opportunity here and as a matter of fact, the Andhra Pradesh Government has announced that it is soon setting up a Hyderabad Digital Media City by acquiring about 200 acres of land in Sultanpur. There is no denying that given the digital infrastructure, talent pool and low production costs that India offers, it is a welcome sign for many International production houses to step up their shop here.
However, there are some roadblocks too that they might face, as they grow forward. Keeping in mind the pace of the industry, people like Jayakumar have already started worrying about the talent crunch. Also, there are other countries that offer great opportunities to the business and are also doing great animation work, including China, Philippines and other Eastern European countries. So, in the long run to able to sustain this industry, India would have to continue being cost effective and provide ample opportunities to welcome other international companies. There would also be a need to set up more animation training institutes by the government and corporates to ensure that at least manpower problems do not dampen the pace of this growth saga.
outsourcing which would have been a cheaper option for these companies. Tim Sarnoff, President Sony Pictures Imageworks, reason, “This way we would have a better control over the output of the product. Also, our staff in Culver City (Los Angeles) and India can work on different parts of the same projects making use of the same kind of infrastructure…” There are also some other advantages that these companies would be looking at gaining. With the boom that has been there in the animation scenario, there is plenty of trained staff that would be working at almost less than half the price. Well, it would mean higher investments now, but the bigger studios would now be looking at churning out greater outputs. Hence, in the long run, they would be able to save greater costs.In short, there would be many more companies who would be looking at following this trend in the coming years. Even various state governments have sensed great opportunity here and as a matter of fact, the Andhra Pradesh Government has announced that it is soon setting up a Hyderabad Digital Media City by acquiring about 200 acres of land in Sultanpur. There is no denying that given the digital infrastructure, talent pool and low production costs that India offers, it is a welcome sign for many International production houses to step up their shop here.
However, there are some roadblocks too that they might face, as they grow forward. Keeping in mind the pace of the industry, people like Jayakumar have already started worrying about the talent crunch. Also, there are other countries that offer great opportunities to the business and are also doing great animation work, including China, Philippines and other Eastern European countries. So, in the long run to able to sustain this industry, India would have to continue being cost effective and provide ample opportunities to welcome other international companies. There would also be a need to set up more animation training institutes by the government and corporates to ensure that at least manpower problems do not dampen the pace of this growth saga.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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