Most companies have realized that a specialized outsourcing service provider in a particular process can usually do it in a better and cheaper manner. Outsourcing eliminates up-front capital costs. Thus, clients can reduce costs, eliminate backlogs and significantly improve quality. This facilitates a better use of staff onshore.
It’s a well known fact that India is a major outsourcing hub with animation studios that are cost effective and provide high quality work."The Indian animation industry is seen to have the potential to touch revenues of over $1.5 billion by 2005 from the current level of $1 billion". (The Economic Times, November 19, 2003)
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The survey of 27 of the world's largest financial institutions shows that the shift in operations towards offshore outsourcing is already well underway.