Is Starting an Outsource Game Development Business a Good Idea?

Game development

Nowadays many game development studios are opting to outsource parts (or all) of their projects. In fact, outsourcing has become increasingly popular as more and more studios realize that it is faster, more flexible, and cost-effective.

Because of that, there is definitely a demand for outsource game development businesses to take on the work from these studios. But whether or not starting one is a good idea is a far bigger question.

And if you want an answer to that question you first need to know what it’ll take to run a successful outsource game development business.

The Right Expertise

If you want to start an outsource game development business, you need to make sure that you (and your team) have the right expertise. Some of the common technical skills you’ll need include programming, graphics, animation, 2D and 3D modeling, as well as experience with game engines.

The more expertise your team has, the larger and more lucrative the jobs it can take on. Of course, game studios looking to outsource projects won’t just take your word for it which is why proof of that expertise is important – either in the form of certifications, or work samples.

It should be noted that your team will have to stay updated on emerging technologies too in order to stay relevant.

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 Where Will the Work Come From?

The biggest challenge of starting an outsource game development business is finding steady jobs. If you have been working in the industry previously you may have contacts that you can tap to get a foot in the door and find jobs more easily.

However, if you have not then it may be more difficult, and you’ll have to market your business from scratch while applying for jobs. Third-party outsourcing and freelancer websites may help, but it will be tough to find steady work.

To be honest, if you have little or no experience and a sparse portfolio you should be prepared to receive many rejections. Initially, you may need to accept low-paying jobs to gain experience, add to your portfolio and build connections.

Can You Support It Financially?

Keep in mind that while you market your business and look for jobs you will still have expenses that need to be paid. That includes the wages of your team, office rent, utilities, as well as hardware and software.

It will also cost money to advertise and promote your business in the first place.

All those costs can quickly add up, so you need to make sure you’re able to support it. At the very least you must have the capital to support your business for several months until it breaks even (or is close to doing so).

Managing the Business

Last but not least, you need to think about what it’ll take to effectively manage an outsource game development business. Managing any business requires certain skills such as financial management skills, communication skills, leadership skills, time management skills, as well as sales and marketing skills.

All these skills are essential to improve performance, meet deadlines, maintain cash flow, and increase profits. Without them, you’ll likely face lots of issues that will affect the success of your business.

The good news is that management skills can be learned and there are lots of resources out there that you can find with a bit of research. That said it may be more effective to find a good book on business management, enroll in a reputable course, or look for a mentor.

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So is it a Good Idea?

By this point, you should be a bit more clear on exactly what it takes to run an outsource game development business. To sum it up you’ll need the right expertise, sufficient startup capital, the ability to find and negotiate steady work, and good business management skills.

If you can check all those boxes then starting an outsource game development business could be a very good idea due to the demand that is out there. However, if you can’t you should carefully consider the risks involved.

At the end of the day, game development outsourcing is a great opportunity if you have what it takes. Be sure not to rush into it, however, and instead take your time to weigh your decision carefully, do more research, and come up with a good plan.

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