Outsourcing Game Development To China Makes Sense
Outsourcing in China now worth over $35 million - sleeping dragon or cheap labour?
A sleeping dragon
In a new report, market research and consulting firm Niko Partners claims that revenue from outsourced development of games in China will exceed $35 million in 2007.
The sector is also set to continue to grow rapidly as supply is more than able to accommodate increasing demand for flexible and cost-effective game outsourcing services.
"China has jumped ahead of other regions as the leader in outsourced development of international games. This is in large part thanks to the 44 million Chinese gamers from which more than 10,000 enthusiastic game development professionals have emerged as a talent pool to serve the rising demand for outsourcing from foreign publishers," said Lisa Cosmas Hanson, managing partner of Niko Partners.
33 Chinese outsourcing studios conduct services for international games, with over two-thirds of those employing in excess of 40 staff.
Niko’s research was based on a North American survey of 166 development professionals, seventy-six percent of whom already engage in outsourced game development, and thirty percent of whom already work with Chinese studios.
Simon Carless, director of Game Developer Research, said, "The biggest issue for outsourcing to China has been difficulty with communications. However, many studios now employ bilingual management who work with the liaison at the publisher, and as a result, communications processes have become more effective."
The sector is also set to continue to grow rapidly as supply is more than able to accommodate increasing demand for flexible and cost-effective game outsourcing services.
"China has jumped ahead of other regions as the leader in outsourced development of international games. This is in large part thanks to the 44 million Chinese gamers from which more than 10,000 enthusiastic game development professionals have emerged as a talent pool to serve the rising demand for outsourcing from foreign publishers," said Lisa Cosmas Hanson, managing partner of Niko Partners.
33 Chinese outsourcing studios conduct services for international games, with over two-thirds of those employing in excess of 40 staff.
Niko’s research was based on a North American survey of 166 development professionals, seventy-six percent of whom already engage in outsourced game development, and thirty percent of whom already work with Chinese studios.
Simon Carless, director of Game Developer Research, said, "The biggest issue for outsourcing to China has been difficulty with communications. However, many studios now employ bilingual management who work with the liaison at the publisher, and as a result, communications processes have become more effective."