What are the benefits and challenges of the outsourced video game industry
The video game industry has grown exponentially in recent years, with a global market size of approximately $150 billion as of 2020 [1]. This growth has led to an increase in the demand for skilled professionals, including game developers. As a result, many game development companies are turning to outsourcing to access the talent they need to create high-quality games. In this article, we will explore the benefits and challenges of the outsourced video game industry, with a focus on how game developers can use this model to their advantage.
Benefits of Outsourcing in the Video Game Industry
Access to Talent
One of the main benefits of outsourcing in the video game industry is the ability to access a global pool of talent. This means that game development companies can find skilled professionals who may not be available locally, but are able to work remotely. This can lead to significant cost savings, as well as access to specialized expertise that may not be readily available within the company.
For example, a company based in North America may outsource their 3D modeling and animation to a studio in South Korea, where there is a large pool of talented artists with experience in creating detailed, realistic characters and environments. By outsourcing these tasks, the company can focus on other aspects of game development, such as programming or game design, without having to worry about finding the right talent locally.
Increased Flexibility
Another benefit of outsourcing in the video game industry is increased flexibility. When a company outsources a task to an external studio, they are able to scale up or down their workforce as needed, depending on the project’s requirements. This can be particularly useful for smaller studios that may not have the resources to hire a full-time team of developers.
For example, a small indie game development company may outsource their programming to a larger studio during the early stages of development, when they need help with creating complex systems and managing large data sets. Once these tasks are complete, the company can bring their programming in-house, allowing them to focus on other aspects of game design and development.
Cost Savings
Finally, outsourcing in the video game industry can lead to significant cost savings. By outsourcing certain tasks to external studios, game development companies can avoid the costs associated with hiring full-time employees, such as salaries, benefits, and office space. In addition, by accessing a global pool of talent, companies can often find more cost-effective solutions than they would be able to find locally.
For example, a company based in the United States may outsource their 2D art to a studio in India, where labor costs are significantly lower. By doing so, the company can save money on salaries and benefits for their employees, while still receiving high-quality work from experienced artists.
Challenges of Outsourcing in the Video Game Industry
Communication Challenges
One of the main challenges of outsourcing in the video game industry is communication. When working with an external studio, game development companies must be able to communicate effectively with their team members, who may be located in different time zones or countries. This can lead to misunderstandings and delays, as well as difficulty in maintaining a cohesive vision for the project.
To overcome this challenge, game development companies should establish clear communication protocols from the outset of the project. This may include regular video conferences, instant messaging platforms, or other tools that allow team members to stay connected and collaborate effectively. In addition, companies should be willing to invest in cultural training and language classes for their employees, as well as for their external partners.
Quality Control Challenges
Another challenge of outsourcing in the video game industry is quality control. When working with an external studio, game development companies must ensure that they are receiving work that meets their standards and expectations.