GDC Outsourcing Summit

I am attending an event in Los Angeles about outsourcing game development. The conference will build an argument for outsourcing, talk about the dos and dont's and discuss strategies for setting up an offshore office. A common myth is that outsourcing means loss of jobs in the US, in actuality we have been outsourcing for years in this industry. Outsourcing could be anything from the company down the street, the company in India or your own satellite company. Outsourcing is a good response to a growing, fast paced industry.


From this summit I hope to:

• learn about the pros and cons of outsourcing


• gain best practices


• find companies I could work with


• get a list of the major issues that I might encounter in my new job


• better understand the business of games

Websites:
Outsourcing Summit 2006
Map of game development studios
OutsourceReport
Read the Stubbs the Zombie article on Gamasutra; next-gen game built by 12 people
Forza Mortorsports QnA
Massive Black
Blur Studios
Eden Studios

What should a publisher provide
solid descriptions, clear milestones, great reference, timely feedback, useful feedback, payment. Also provide them with metrics, rating sheets, specificat

why outsource:
games are evolving, technologies are advancing in such a way to demand specialization/research
60% of sgame studios outsource today; coommon jobs localization, cinematic, sound, testing, engineering/middleware, and art.
the "law of more people" a growing number of studios and game schools worldwide
governments are offering incentives to attract game business
keeping people busy, outsourcing can be used to minimize cost between projects, allows you to keep a good studio busy
labor cost savings of 15-60% (labor is just one cost)
total cost savings 20%
outsourcing will be essential for all companies, no company can be a generalist

FAQ
How do you build the skills to manage a complex outsource? Start small. Don't outsource 50% of your development if you have never done it before.

Where is outsourcing happening? Largely Asia and Europe. The biggest countries are chinese and India. For China you must be conscerned about security, legal protection and experienced labor shortage. Savings can be up to 50%.

what do you look for?
First know your needs ad thei abilities of your developer.
Personnel experience, scalability, facilities, managers, platform experience, language capabilities, and much more. Ask how long those people have been at the company. Make sure the deveoper can retain those people. Be sure to look in your own back yard. The less experience they have the more hands on youhave to be.

How do you structure?
Option 1: One producer to manager
Option 2: One porudier to many managers
Determine your needs: are you looking for scalability, cost savings or additional dev help.

What are the hurdles?
Finding your partner -
Proper due diligence - meet everyone and feel comfortable with all their language, review 1 piece from each of the talent being hired
Language barriers - technical langauage poses a challege for even native speakers
Reorganize management - define milestone approal processes, training, etc.. Basic managerial know how is great
leagal considerations
partner talent retntention - make sure you know who will be on your project and they will stay

what are benefits
least expensive
close control

How do you select process?
You go through steps: rfp, pilot tests (before, 2 out of the blue), audit, service level agreements
look towards partnership and supplier


tips

• be familiar with the social, political, and economic condition of the country


• visit regularly; monthly to avoid tiime loss and expense


• protect talent, if new talent comes on we have the responsibility of training them


• evaluate processes - look at our processes constantly.


• have an outsourcing strategy - who will interface, contract negoations, QA, etc..


• make sure ownership is clear, give reviewers direct relationships


• make specs very clear, don't rely on cultural descriptors that may not translate well like "movie1' meets 'movie2' meets 'GameX'


• disagreements amongst the core team amplify when it gets to the outsourced developer


• try to catch as many issues in pre-produciton to limit the impact on the outsourced developer


• make sure everyone on the core team is in agreement with outsourcing


• increase face time, increases empathy and warmth, more inclined to give each other space


• admit when the scope changes, be flexible


• 24x7 production is a myth, time zones just cuts on the review time


• The a-team builds the demo and the b team and the c team actually deliver the work


• always aim towards long-term relationships


• things to check pedigree, process, security, scale, cost. for example if no one has internet...full stop


• clear communication

have a plan b, prioritize your requirem



Companies I met:
Virtuos Games Outsourcing provider in Shanghai.


My questions: