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.
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Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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space, with channels like Meow from Radio Today’s stable. The channel flaunts the idea of being the first and the only radio channel for women. “Going by the international trend, niche radio stations have a bright future in India, provided some policy changes are incorporated like multiple frequency allotment to every player,” says S. Keerthivasan, Business Head, Fever 104 FM. Agrees Anil Srivatsa, COO, Radio Today, “Niche radio will affect mass radio channels a lot because people will move on to specialised channels and hardly any audience will be left over for general channels.” Industry veterans believe that keeping in mind India’s diversity, niche stations can even be in regional languages, news focused, sports centric, business news driven, or even themed on the various music genres (rock, pop, jazz or classics), a la World Space on FM. Media planners agree that the expansion into niches will make business sense too as the advertising pie for the entire medium will expand substantially. They add that niche stations will also boost the entry of non-traditional advertisers on the radio bandwagon.
venture capital itself! Some of the best known technology brands globally have been seeded by Bessemer Venture Partners–the oldest VC firm in the United States. Bessemer steered its way into India in 2003 and made its first investment in year 2005. While the biggest of big, share this regret of “we should have invested much before in India,” this fund has no regret. According to Bessemer, the India growth story has just about begun and that they are a long-term and patient fund. In an exclusive tête-à-tête with 4Ps B&M, Devesh Garg, Head of Bessmer’s India practice, dwells at length on the correct recipe of creating a world-class company...
Intelenet Global Services, explains the key rationale behind the Blackstone and Intelenet deal to 4Ps B&M: “We wanted to retain our third party BPO focus and wanted to grow into a global brand. From the outset, we were very clear about what we were looking for in a potential partner. This deal with Blackstone will enable us to continue to grow as a third party BPO service provider and will also help our multi-pronged growth strategy. The association with Blackstone is a mutually beneficial one where Blackstone leverages Intelenet’s delivery capabilities for all its portfolio companies. Intelenet aims to optimally leverage Blackstone’s financial backing to improve and expand its operations. These acquisitions will enable Intelenet to expand its delivery footprint from solely offshore centres, to an on-shore and near-shore capability based out of the US and Latin America. Blackstone is lending its global brand and ready access to its investee portfolio.”