Not all day rates are equal: how much value does game art outsourcing really bring?

After two challenging years in what has been an increasingly unpredictable industry, we are seeing signs of a positive shift. However, the game development landscape has changed. With over fifteen years’ experience of creative and technical video games outsourcing, we have first-hand experience of the industry’s cyclical ups and downs. In the current landscape, projects have been more competitive, faster paced, with rates scrutinised and negotiated more than ever, and it’s led us to ask ourselves: Are all day rates equal?

We spoke to Becky Jackson, Atomhawk’s Commercial & Operations Director, to explore this question.

How have outsourcing needs changed in that time you’ve spent in the games industry?

“I’ve had the pleasure of spending the last nine years of my career working at Atomhawk, leading visual development outsourcing to the biggest developers in the games industry. During that time, I’ve overseen the creation of bids for hundreds of projects. With a background in both project and client management, I’ve always placed an emphasis on how we work with our partners, as well as the quality of the creative work that we produce, and this starts with the bidding process.

For both new and existing partners, the bidding process is becoming more scrutinised, more competitive and it feels like we’re on the edge of a precipice in terms of pressures on rates. Retainers are still the number one option for most clients, with the preference to hand pick artists and designers becoming the new norm. Most clients still request a retained booking with limited, or no scope of work defined at the outset.

With an ever-increasing emphasis on rates being king at the bidding stage, it’s becoming more difficult for outsource partners to prioritise the ‘unseen’ services they offer, such as QA, Project Management and Client Services. That’s not to say that clients don’t value these services, they very much do, which is proven by the repeat business we book and new work via recommendation, but demonstrating this ‘real value’ at the bidding stage when budgets are squeezed and rates are scrutinised is today’s biggest challenge – albeit one I’m willing to take on!”

What is the ‘real value’ an outsourcing partner can offer?

“It isn’t new or unusual for outsourcing teams to focus on rates as a value metric. In all honesty, it’s completely understandable during an industry’s down period, but it does pose a challenge to external developers of how to demonstrate their comprehensive value in a competitive market. For example, on the surface, a retainer is booking an artist or designer for X amount of time to work on Y assets, often working as an extension of a partner’s in-house team. But this isn’t the full picture; deeper than just the delivery of work is cumulative team experience, problem solving, production and client support, internal QA systems, tech advancements and pipeline efficiencies. Therein lies the real value of an outsourcing partner.

This emphasis on a more holistic approach to client and project support allows clients to head off problems before they happen, provide valuable data and reporting on project progress, as well as layering in QA to minimise feedback loops and reduce the burden on, often, very busy producers and art director’s client side. Working this way means that blended rates that include multiple services, often come at a perceived premium, although that doesn’t mean they’re actually more expensive, all things considered.”

What are the key problem areas clients often come to Atomhawk with and how do you tackle them?

“With shrinking budgets at established studios and a multitude of new studios rising from the ashes of industry turmoil, the challenges are wide and varying. If positioned as the ‘experts’ we can help diagnose a client’s pain points and work together to find a solution.

My take on this is always to talk more, pull up a couch and take on the role of the therapist, to identify our clients’ problems, both short and long term. As with any relationship, this process comes with trust, open communication and a genuine willingness to adapt to the task at hand, and once we’re there the rewards are invaluable.

If budget restrictions are an issue in early-stage exploration, let’s talk about long-term vision and how we can provide a flexible or streamlined approach in the early stages, and then add further value when the project needs more substantial support.

If traditional concept approaches balloon the costs of in-game assets and ultimately make them exceed their inherent value, let’s explore alternatives and find a more cost-effective solution through leveraging tech and new and innovative pipelines.

If plans are to stay small, keep overheads low and use outsourcing to ramp your team up and down, let’s talk about how we can adopt a flexible model, provide cross discipline support, and reduce QA and production burden, alongside creative services.

In summary, there is no set solution, but an experienced outsourcer should be able to tap into their toolbox of experience to create a bespoke approach.”

So, are all day rates equal?

“No, not all day rates are equal, or represent value. True value comes from the relationships that we build between outsourcers and clients, and a long term, positive and open working relationship will always reap rewards beyond the day rate.”

Thought Leadership at Atomhawk, brought to you by the Canopy imitative.