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MUMBAI:
Demand for animation content is rising and the sector is expected
to grow 30 per cent annually over the next three years, from
its current size of $550 million.
"There
is also scope for animation companies to exploit from the
gaming industry. Besides outsourcing, we are also seeing a
surge in domestic demand from kids TV channels and film producers,"
said DQ Entertainment Tapaas Chakravarti while speaking at
Nasscom Animation & Gaming India 2007.
Animation
companies in India will have to focus on quality and scalability,
other speakers said in a session on "Outsourcing from
India.".
"The
low-cost model is not sustainable. It is quality that will
drive outsourcing in the long term rather than cost,"
said Paprikas CEO Nandish Domlur.
The animation industry also faces the challenge of creating
a large talent pool and needs to transition to IP-driven models
over a period of time. There is also a lack of experience
in digital product pipelines and project management.
"The
services legacy has provided exposure to work flow and processes
in the global arena. The hybrid service model should grow
into a more matured engagement on co-productions," said
Domlur.
Animation
companies also should look at acquisitions and equity positioning
as scalability becomes an issue.
On
the gaming front, it is essential for companies to get into
annualised contracts as production schedule can be volatile,
cautioned Dhurva CEO Rajesh Rao.
Developing
a continuous training structure is also imperative as the
industry moves up the value chain, said Lakshya Digital CEO
Manvendra Shukul.
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