NASSCOM Animation & Gaming India 2007: Session Wise Coverage
According to the latest NASSCOM annual report and study on Indian Animation and Gaming, Indian Animation industry revenues were around US$354 Mn in 2006, clocking a growth of 24% over 2005.
The study forecasts the industry to reach US$869 Mn by 2010, representing a CAGR of 25% over 2006-2010.
On the Gaming front, the report states that Indian Gaming Industry revenues touched US$48 Mn in 2006 and the forecast is that the industry shall cross US$424 Mn by 2010 representing a CAGR of 72% over 2006-2010.
Approximately half of the Indian Gaming market is accounted for by Mobile Gaming and the trend will continue into 2010 with forecast for the Mobile Gaming business around US$193 Mn.
The report focuses upon the need to focus on Human Resource, It states, “Even at these impressive growth forecasts, the Indian animation and gaming Industry will account for less than 2% of the worldwide market in 2010, clearly indicating a significantly larger opportunity. Ensuring the availability of adequate, suitable manpower and a focused industry development program can help India achieve a larger share of the pie”
The study, â€?Animation and Gaming Industry in India 2007â€?, was released during the inaugural session of the NASSCOM Animation and Gaming India 2007 Summit, by Smt. Ratna Prabha, Principal Secretary – Information Technology & Communications Department, Governemnt of Andhra Pradesh in the presence of NASSCOM Chairman B Ramalinga Raju and President Kiran Karnik.
Spanning a massive 231 pages, the report is rich with data, graphs and information about various components that make up the ecosystem, including analysis of trends including VFX, Animated features, Direct2DVD, Home Video, Mobile Gaming, Education and Training as well as analysis of various International Animation Hubs� strengths and weaknesses.
Besides the analysis and snapshots, one of the most impressive things about the report are the recommendations to the Government, the Industry and the training institutes, with the aim of meeting the demand supply gap in Human Capital and also in terms of getting policy support for this vertical.
Following is an excerpt from the executive summary
Case for human capital development for animation and gaming
“The number of professionals involved in the Indian animation Industry in 2006 is estimated at around 16,500. This figure is forecast to increase at a CAGR of 14-15 % and exceed 26,000 by 2010. Although the forecast growth is reasonably impressive, it falls short of the potential growth that the industry can achieve. The Key constraint is the growing demand-supply gap in manpower availability that is expected to restrict the Indian animation Industryâ€?s growth to US$ 869 Mn. against the potential of exceeding US$1 Billion”
“The same holds true for the gaming segment as well. Currently there are about 150 gaming companies in India, employing about 2,500 people. This number is forecast to increase at a CAGR of over 50% to exceed a manpower base of 13,000 professionals by 2010. The forecast for gaming for 2010 is US$424 Mn., as against the estimated potential of US$ 732 Mn. that can be achieved, the gap between the forecast and the estimated potential can be met only if the human capital concerns can be addressed in time”
“Some of the pre dominant factors causing the demand supply gap include the lack of creative/gaming culture, lack of awareness / recognition for career prospects in this segment, and the absence of well known training institutes / educational institutions. This gap is most prominent in the initial stages of the value chain like the concept creation and pre production work – which hinders backward integration. Several leading players have undertaken initiatives to train the talent pool available in India to create the required supply of suitable manpower. As a result, a majority of the professional talent existent today is a product of these company supported internal training programs. This is not a scalable solution. Though Independent training institutes have also emerged, there is still a lack of collaboration between the industry and these third party training institutes, resulting in a mismatched curriculum which is not in line with industry requirements – thereby undermining their effectiveness”
NASSCOM has recommended a concerted effort led by the industry, in close association with the academia and supported by the government is required to address the issue emphatically.
A small list out of the many recommendations that NASSCOM has made in its report
Recommendations for Studios /Companies
Animation and Gaming companies need to collaborate with the training institutes very closely and support them with the required guidance on the curriculum
Studios need to improve collaboration with institutes by setting up internship programs for students
Recommendations for Institutes
Change the outlook from commoditization of education to deliver quality education.
Offer Multimedia degree to open new areas of opportunity for aspirants
Invest on developing quality trainers
Increase interactions through a joint forum
Recommendations for government
Introduce courses in government institutes
Establish a Governing body to define the course structure offered by the institutes
Establish accreditation of animation and gaming courses
Give a chance to interested individuals to get to know more about animation and gaming
Participating in the PPP model to bridge the demand supply gap in the animation and gaming industry
The report has also made a case for policy support for the Indian Industry
Following is an extract from the executive summary
Case for government policy support for the indian industry
“The broadcast (including animation) industries in countries such as France, Singapore, China, Korea, Canada, Philippines; have grown with the help of specific policy support extended by the local governments. The support offered has ranged from assistance in manpower development, infrastructure provisioning, direct and indirect investments, to promoting industry recognition. This support is also augmented with broadcasting policy regulations encouraging the growth in production and consumption of local content which boost the domestic Industry”
“Learning from these experiences, a similar approach may be developed for India. These may be introduced in a phased manner, synchronized with the industry requirements at different stages of its evolution, and measured against pre-set objectives to assess their effectiveness. To start with, an industry support agency may be established to standardize the industry processes and streamline industry actions. This will also enable the industry to contribute towards developing a standard curriculum for training institutes, spread industry awareness and will especially assist emerging companies. Subsequently, the industry agency may take on a large role of pro active trade development and industry promotion”
“However Industry action alone may not be enough and government support will be essential for the structural strengthening of these sectors. The key aspects requiring government support and the proposed form of aid include tax incentives and infrastructural support to promote investment in this sector. Investment needs to be encouraged not only in the industry itself, but also in the support infrastructure – pre dominantly human capital creation. In addition to these, an enabling broadcasting policy that encourages local development of content could be instrumental in driving a step change in industry development. Not only will this encourage local entreprenuers to enter this sector, but it will also help the industry develop capabilities across the value chain- as opposed to remaining service providers in an outsourced model”
Here�s listing a few of the many other points and snapshots provided in the report
D2Dvd and VFX expected to grow faster as compared to traditional segments like TV series.
Market for fully animated movies for the domestic market is likely to match the offshore segment by 2010
Demand for animated content in the e – education segment is expected to grow fivefold over the forecast period of 2006-2010
Unlike most segments that are predominantly export-led, growth in domestic demand for gaming is also expected to be a key driver of growth for the Indian gaming industry.
Entry of Indian game publishers and online portals is expected to drive growth in the domestic online gaming market
Global Interest and confidence in the Indian Animation and Gaming industry is growing and foreign players are investing in India and Indian players are expanding overseas partnerships
One of the most respected bodies in the world, NASSCOM has come up with some really practical and progressive recommendations. Now one can only hope that the Government, the Academia and the powers that be, within the industry take a serious look at the recommendations and start taking initiatives to discuss debate and implement the same!