Fast, Cheap, or Good: Pick One
May 1, 2008 10:01 AM, By S. D. Katz
An outsourcing primer for the Far East.
Outsourcing is a hot-button issue. It provokes demands for protectionism in Rust Belt states or not-so-mild irritation from consumers speaking to the Mumbai call center of their friendly, downtown bank (the one promising personal service). For Hollywood studios looking to cut costs, it's not just an alternative to domestic production — it's the future. You may know Maya, but what about Mandarin?
2D animation has been going to the Far East for more than three decades, so it makes sense that 3D animation will follow the lower cost of labor to markets with the right mix of IT and artistic sophistication. George Lucas opened a Singapore studio to do his 3D animated series, The Clone Wars, and he was pleased enough with the results to release a theatrical movie as well, Star Wars: The Clone Wars. Both Sony and Rhythm & Hues have opened facilities in India, and Imagi Animation Studios in Hong Kong is a bicontinental studio.
The outsourcing trend for 3D began in early 2000, and the growth of outsourcing continues at a fast pace. However, reports back from the globe-trotting production pioneers reveal that doing complex CGI projects overseas is not free of gotchas and disappointments. Over the past five years, there have been many lessons learned on both sides of the oceans; the missed deadlines of the early years are now uncommon, but with so many new inexperienced studios, it makes sense to know what works and what doesn't work.
But before you producers in the West begin smirking about the superiority of Western visual effects and animation, know this: The number-one reason animation outsourcing goes awry in the East is because shows are not properly prepared in the West. The process of 2D animation is practically a science with standard tools such as exposure sheets, extremes, and model sheets that precisely communicate a project to a vendor. There are producers who know the 2D outsourcing drill inside out, and sending 2D work overseas has become a routine. 3D is a whole other ball game. Storyboards are the main template, and these leave a lot to the imagination of 3D-layout and character animators. There's far more room for interpretation from both client and vendor in 3D.
So understand that Western producers who are not buttoned up, or directors who consider outsourcing another opportunity to repeatedly revise, deserve the frustration they will surely encounter. Outsourcing is manufacturing, not look development. Glad we got that out of the way. Now let's look at some common issues that a producer new to outsourcing should think about.
Holidays
Negotiate in advance what happens if your production falls behind and you need to make a delivery near the time of a local holiday. In China, workers get a few long holidays — Chinese New Year, or Spring Festival as it is called locally, being the longest. It's difficult to make artists stay around the studio during these times, but it can be worked out in an emergency. But it's a lot more difficult to do this if you make the request at the last minute.
Free is good, right?
Even in the West, some studios will underbid just to keep their artists working. In the East, that also happens, but you can add inexperience to the mix and find that the outsource studio just doesn't have the resources halfway into the project. Make sure you have a reasonable contingency. Bad situations tend to arise when a client is new to outsourcing, hears about the local labor rates, and comes up with a ballpark figure for what he should be paying. I've heard sophisticated producers imagining that the vendor does not pay taxes, have overhead or loans, or require a reasonable markup. You always end up getting what you pay for anyway, so the lowest bid is rarely worth the savings.
Exchange the exchange students
I know well-known animation companies that went to the East for their first 3D outsourcing gig and did not hire a producer who had worked in the vendor's country before. Big mistake. Experienced producers are hard to find, but then so are jobs when you lose clients. Knowing the language is not essential, but knowing the ins and outs of production in a specific country is. India is not China is not Korea is not Vietnam is not the Philippines. Each country poses unique challenges. If a test is part of the award process, send someone over to oversee the test. Don't visit for one fun-filled week of Thai food, trips to the Wall, or massages. Take at least two weeks to scrutinize the production process carefully.
Speak slowly and clearly
Every country has a slightly different language challenge. India has more English-speaking people than China thanks to a century of exploitation by the British. In Shanghai, they don't speak Mandarin or Cantonese. So it helps to have a native speaker working for you at your home studio. It may not be absolutely necessary, but more time is wasted and more mistakes are made because simple things were not properly translated than for any other reason.
Digital communication
Along the same lines, it's critical for many projects to have cineSync or some other live-collaboration software for review sessions. Skype, iChat, and other tools should be checked out and tested to find the best mix of tools for your project. Skype works better in some countries than others. I know of one studio in which the review room had no carpeting and tile floors. The speakerphone was less than optimal, so for weeks, everyone suffered through sessions that sounded like they were being hosted in Carlsbad Caverns. Make getting this right part of the budget.
Moving large files is another challenge, and it's worth setting up the fastest connection possible. FTP will not cut it for HD frames, which are increasingly expected for TV programs. The most common solution is sending hard drives by FedEx or DHL. It makes sense to test and compare options including Blu-ray Discs.
What version of black is that?
Color consistency in NTSC and film requires attention to detail even when all the artists are in the same studio. Having a color pipeline that stretches across continents is just asking for trouble. There is no easy solution, but before awarding a project, make delivering final frames based on a color test part of any contract. Make it a real test that goes end to end, including posting to tape. The test must use all the same components that will be used once the real work begins.
If history means anything
If you look at the folks that have done a lot of outsourcing for years, they perform a lot of due diligence before choosing a studio to work with. To sum it up simply: They don't leave any part of the process to chance. Every aspect of producing animation is tested — and not just the art; this includes all details of doing business, from backup to banking.
Outsourcing is a fact of life in animation. It is only going to increase in quality and scope. In today's market, it may be the only way to get certain projects sold. Some of the biggest Western studios have successful and strategically important relationships with overseas animation companies, and you will see more co-ventures in the future. The world is not only flat, it's flat in 3D.


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