A shortage of trained professionals could impede the progress of the country's animation and gaming industries, which, otherwise possesses a tremendous potential for growth.
MUMBAI: A shortage of trained professionals could impede the progress of the country's animation and gaming industries, which, otherwise possesses a tremendous potential for growth, a report said.
"A growing demand-supply gap in manpower requirements could act as a dampener to both these industries, preventing them from achieving their full potential," a Nasscom report said.
The number of professionals employed in the two segments in 2006 was estimated at 16,500 and this was forecast to rise at a CAGR of 14-15 per cent 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, as the key constraint is the growing demand-supply gap in manpower availability that is expected to restrict the Indian animation industry's growth to $869 million against its potential of exceeding $1 billion," the report said.
Around 150 gaming companies in the country presently employ around 2,500 personnel. This number is forecast to increase at a CAGR of over 50 per cent to exceed 13,000 by 2010, with the industry revenue forecast to grow nearly ten-fold and reach $424 million, the report added.
Impressive as the figures may seem, this is, however, significantly lower than the estimated potential of $732 million that the Indian gaming industry can achieve by 2010, if the supply concerns are addressed on time, the report said.
The entertainment segment contributes nearly 68 per cent to the total animation market in India. The key factors driving the growth includes a significant cost advantage, a large pool of English-speaking manpower, growing maturity of animation studios, development of Intellectual Property (IP) and an attractive domestic market opportunity, it said.
Mobile and console gaming, together contribute to nearly 77 per cent of the total gaming market in the country. An increasing mobile and broadband penetration along with new-generation consoles are expected to lead to the share of online and console gaming in the total Indian gaming market increasing significantly by 2010, the report said.
Exports are estimated to have accounted for over 70 per cent of the revenues in 2006 and the industry's dependence on exports is also reflected in a major portion of the workforce being involved in the outsourcing segment.
"The success achieved by 'Hanuman', a fully animated movie released last year helped give an impetus to increasing levels of interest in animated movies in the domestic market," the report added.
It also stated that the broadcast (including animation industries in countries like France, Singapore, China, Korea, Canada and the Philippines) have grown with the help of specific policy support extended by the local governments.
Learning from these experiences, a similar approach may be developed for India, the report said. These may be introduced in a phased manner, synchronised with industry needs at different stages of its evolution, and measured against pre-set objectives to assess their effectiveness, it added.
To start with, an industry support agency may be established to standardise the industry processes and streamline industry actions, the report said.
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