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There used to be little benefit to outsourcing the production of online games, but the recent boom in China’s online game industry has changed this perception. Game outsourcing is the latest trend, as a result of unprecedented growth. To meet the surging demand within the market local outsourcing companies have begun to develop their resources accordingly – hiring people with skills in artwork, flash animation, and sound production.

Ming Haoxia, secretary general of the Shanghai Multimedia Industry Association remarked:

“A rising demand for high-quality games, resulting from upgraded computer hardware and operating systems, has pushed game companies in North America and Europe to outsource their projects to alleviate huge labour costs.

“Only a few foreign brands, like Japan’s KONAMI and France’s UbiSoft, were operating outsourcing businesses in China in 2004. The number of Chinese outsourcing companies has surged over the past five years.”

The Chinese online gaming industry has grown exponentially in recent years. According to the China Internet Network Information Center, from its 60 percent growth in 2006, it then grew by 70.77 percent in 2007, and 52.2 percent in 2008.

In 2009, its revenues reached almost $3.78 billion, an increase of 39.5 percent, based on figures from the Ministry of Culture.

Highly anticipated in the game outsourcing industry is the first China Game Outsourcing Conference (CGOC) in July 2010, as per China Digital Entertainment Expo & Conference (ChinaJoy) Organizing Committee general secretary, Han Zhi Hai  said the conference will help expand its development locally and internationally.