Canadian technical institutes seemed to have noticed a sharp shortage of skilled manpower to work on computer animation in India and are tying up with Indian animation schools to offer their courses. Indian animation industry faces massive attrition rates of 20-30 per cent mainly from a supply shortage of trained manpower.

Companies cited to have entered into partnership include Ontario-based Algonquin Animation College with the Bangalore-based Animaster and Vancouver-based British Columbia Institute of Technology (BCIT) with the Ahmedabad-based Xplora Design Skool.

In a 2005 study, 'Study on Animation and Gaming Industry in India', NASSCOM predicted a need for more than 300,000 animation-trained personnel but it also says that the industry employs only 16,500 personnel in 2006 and projects a more moderate 26,000 by 2010. It is not clear what caused the downgrade of skill requirement projections.

Nasscom says that in 2006, the animation industry earned USD 354 million and projects USD 869 million earnings by 2010. Industry experts also predict that the share of animation films will increase from 15 per cent in 2005 to 28 per cent in 2009.