Outsourcing means subcontracting a task to 3rd party. This practice can easily backfire because work that is performed externally may possibly not match the internal standards. However, the potential hitches of outsourcing are clear, but its advantages are less obvious.
The in-house artists at game studios generally wonder ‘why outsource when the help is available within the office?’ The answer to their question is that outsourcing saves money. It is true, but besides cost-cut, off-shoring helps the organization to gain or strengthen their capabilities.
Capability sourcing is strategically used for everything ranging from tapping world-class talent, promoting new products quickly, as well as to transform traditional business models.
Less clear advantages of outsourcing to game developers
The main reason many game developers outsource their projects is the availability of cheap labor in other parts of the world like India and China. Obviously, the funds spent on outsourcing game production are pointed out, but the other side of the story is invisible.
For example, you have to pay internal full-time employees, even after the completion of short-term content. If you lay off workers between projects more resources gets wasted because you have to replace the workforce for the next project.
You won’t have to worry about getting the best employees for your process. Additionally, hiring new internal staff for short term project is expensive, due to on-boarding and training for a couple of months.
On the other hand, outsourcing the task to any top pc game development companies in India is beneficial because allthese costs get absorbed. In addition, your period of low productivity becomes less expensive if it is paid for in India.
Subcontracting gives you access to well trained staff, which saves staffing up time. In turn, you could use this time to create content more efficiently, and get the content shipped back soon for modification.
The recurring process of hiring and laying off for each project is frustrating. Outsourcing significantly takes the burden off your shoulders. You do not have to hire an HR and IT team. In addition, you save overhead expense. The service providers manage their own workforce and you can keep your organization narrow and less technical.
Outsourcing allows adding resources when needed and you can release them without hard feelings. The service providers will never refuse or get depressed to work on things they find boring or is repetitive. Thus the internal team can be used for more agile tasks.
Your team size is not limited by the dimension of your studio or support staff and managers. You can create large games even within a small studio. Moreover, you can employ high level designers and game play programmers rather than content creators, in order to improve the chances of building a good game.
Retaining a stable team is imperative to maintain productivity because the dynamics can fluctuate whenever new member joins the group. Subcontracting allows the production to continue even if the internal workforce is on a vacation.
Companies can get large talent pool and bridge cultural gaps by associating with external service providers. Access to talents from different parts of the world can be attained directly, which would have been difficult internally.
Outsourcing may seem risky at first, but actually it helps secure internal jobs. Without outsourcing the games would include less variety, be short and very expensive.