As corporate demand grows, considering in-house production can be a viable solution for creating animated videos more flexibly and efficiently. However, the path to in-house production is by no means easy, and many companies harbor doubts and concerns such as, “Will in-house production truly solve our problems?” or “Wouldn’t outsourcing result in higher-quality videos?” Others may hesitate, wondering, “Doesn’t in-house production require a significant investment of time and money, and won’t we end up relying on outsourcing anyway?”
If you do decide to move forward with in-house production, having a director to manage the entire project is essential. You might be thinking, “But we don’t have such a director, and it would take too long to train one…” It’s not uncommon for directors to focus solely on managing beautiful layouts and visuals while lacking an understanding of design from a business perspective.
In other words, if an in-house director possesses not only technical knowledge but also a business perspective, it becomes possible to produce videos that align with your objectives, ultimately maximizing the effectiveness of the video.
In this article, we will explain in detail the pros and cons of in-house animation video production, as well as specific steps for creating effective videos that align with your business goals. For those who feel that moving toward in-house production seems complicated and don’t know where to start, I will also introduce methods for standardizing work processes within your organization, based on my experience cultivated over more than 10 years in the design and marketing fields.
Please use this as a reference to make the right decisions between in-house production and outsourcing, improve the quality of your video production, and enhance cost efficiency.
Should you produce animation videos in-house or outsource? Key criteria to consider
Whether a company should produce animation videos in-house rather than outsourcing them depends largely on its objectives, resources, and skill set.
Consider outsourcing if you need to supplement your expertise or resources
Consider in-house production if speed is a priority
From a long-term perspective, producing animation videos in-house can offer significant benefits to a company. Below, we provide a detailed explanation of in-house production.
What in-house video production involves: handling everything from planning to delivery
In-house video production refers to handling the entire process—including planning, production, and editing of animation and video content—entirely within the company, without outsourcing to external production companies. With this approach, the company’s own staff directly handles everything from video planning to final editing.
The primary objectives of in-house production are to strengthen control over video production and improve project flexibility. By handling everything in-house, companies can respond quickly to specific needs and changes, which ultimately allows them to more effectively reflect their brand image and message.
Key considerations for in-house video production
When considering in-house video production, the following points are important.
Assessing Resources: In-house production requires the right personnel, equipment, and software. You need to determine whether your company has these resources available and, if not, how to address any gaps.
Strengthening Skill Sets: Video production requires a wide range of skills. It is important to develop the necessary skill sets through internal training and acquiring knowledge from external sources.
Enhancing Communication: Project progress requires cooperation among various departments, such as planning, production, and editing. Establishing an effective communication system leads to smooth project management.
In-house video production can deliver significant value when it aligns with your company’s resources and objectives, but success requires proper planning and preparation. Accurately assessing your company’s situation and carefully evaluating the feasibility of in-house production is the first step toward success.
When to outsource: if you lack expertise or resources
When producing videos, if specific expertise, technical skills, or specialized equipment are required, building these capabilities from scratch in-house can be a significant burden. This is particularly true in highly specialized fields such as animation, where advanced skills and experience are essential; in such cases, outsourcing to external experts or production companies may be the wisest choice.
The primary benefit of outsourcing is the ability to obtain high-quality results immediately. Additionally, since you can select the most suitable experts for each project, it becomes possible to produce videos in a variety of styles and techniques. Furthermore, outsourcing allows you to focus your in-house resources on other critical tasks.
However, outsourcing can be costly, and the time and effort required for project management and communication are notable drawbacks. Therefore, if your primary goal is to supplement your know-how and resources, you must carefully evaluate cost-effectiveness and project management strategies in advance when considering outsourcing.
When to keep it in-house: if speed is a priority
In-house production is an effective solution for projects that require video production on a tight schedule or frequent, rapid revisions and updates. By producing content in-house, project scheduling and the revision process become smoother, enabling faster decision-making.
One of the benefits of in-house production is that the internal team’s deep involvement in the project fosters a deeper understanding of the product or service, allowing for the creation of content that better aligns with the brand. Additionally, once an in-house video production infrastructure is established, the company can respond quickly to future projects.
On the other hand, the drawbacks of in-house production include the need to secure personnel with the appropriate skills and to invest in the necessary equipment and software. Furthermore, in the initial stages, time and effort are required to establish the optimal production process through trial and error.
If speed is a priority, when choosing to produce content in-house, it is important to focus on initiatives to improve internal skills and streamline processes. Additionally, for areas that cannot be handled internally, seeking collaboration with external experts as needed can be a viable strategy.
Benefits of producing animation videos in-house
There are many benefits to producing animation videos in-house. These advantages span a wide range of areas, from cost savings to project management.
In-house production enables greater flexibility and smoother optimization
No need to pay high production costs
Since the team is dedicated to your company, detailed explanations are unnecessary
No time wasted checking quotes and rules from external vendors
The entire process, from planning to production, can be managed seamlessly
Let’s take a closer look at each of these points.
Greater flexibility and easier optimization
There are many benefits to producing animation videos in-house. In-house production significantly improves project flexibility and optimization. Since in-house production allows for a quick response to sudden changes or revisions, it ensures that projects proceed smoothly.
Furthermore, by controlling every step of the production process in-house, it is possible to manage tasks more efficiently and minimize project delays.
Lower overall production costs
Compared to outsourcing, in-house production leads to cost savings in the long run. While there are initial costs associated with investment and staff training, these costs decrease relatively as you produce videos repeatedly. In particular, since you no longer have to pay external vendors, you can save on expensive production costs.
No need for detailed briefings, since the team knows your business
Since in-house video production requires a deep understanding of your company’s products and services, it allows you to create an environment where you can entrust the work to your team without needing to provide detailed instructions.
Because your in-house staff are well-versed in your company’s vision and brand message, this not only saves you the trouble of repeatedly explaining these details to an external production company but also enables the creation of videos that better align with your brand.
No time lost comparing quotes or dealing with vendor requirements
When outsourcing, you need to spend time obtaining quotes from vendors and confirming production guidelines. By handling production in-house, you can eliminate these steps, shorten the time from project launch to completion, and deliver videos more quickly.
A smoother process from planning through production
Because we handle everything from planning to production entirely in-house, we maintain consistency throughout the project, which leads to higher-quality final output. By keeping everything in-house, we foster closer collaboration between different departments, resulting in video production that feels more cohesive.
Since we can manage all production stages in-house, we can advance projects with a consistent direction from the planning stage through to completion. Handling everything in-house is a key factor in ensuring video quality and message clarity that conveys a strong sense of unity.
While in-house production requires preparation and effort, maximizing these benefits enables effective and efficient video production. It is important to thoroughly assess your company’s resources and needs and explore the potential for in-house production.
Challenges and risks of in-house animation production
While producing animation videos in-house offers many benefits, there are also several drawbacks. Understanding these challenges is crucial when deciding whether to go in-house.
In-house production makes it difficult to build up expertise
Although it is more expensive, you receive support for planning and expertise
It takes time to become familiar with your company’s information
You need to establish production workflows and rules as you go
Production takes up time, making it difficult to focus on planning
Let’s take a closer look at each of these points.
Slower accumulation of specialized know-how
Know-how and expertise in video production are accumulated through experience. When outsourcing, you can expect high-quality videos because specialized production companies possess extensive experience and knowledge.
However, when producing videos in-house, there are often few staff members with specialized expertise, making it difficult to build up that knowledge. As a result, the quality and effectiveness of the videos may not meet expectations.
Outsourcing may cost more but provides expertise and strategic support
While outsourcing costs can be high, in return you gain access to professional planning capabilities, specialized expertise, and experienced support. When handling projects in-house, there are fewer opportunities to receive direct support from external experts.
Time required for the team to fully understand your business
When moving toward in-house production, it takes considerable time for internal staff to gain a deep understanding of the company and its production processes and to incorporate that knowledge into the videos. This is because video production requires not only knowledge of the brand but also expertise in platforms, creative techniques, and project management.
On the other hand, external vendors, having worked on numerous projects, possess the ability to quickly grasp information about various companies and apply it to video production. Rather than relying solely on in-house production, it is advisable to proceed by leveraging external expertise.
Ongoing need to define workloads and workflows
When you handle production in-house, your company assumes full responsibility for managing the production process and establishing guidelines. This requires project management skills and experience, as well as the ability to accurately estimate production workloads and establish efficient guidelines. When outsourcing, the production company handles these management tasks, but when producing in-house, your company must handle all of them internally.
Production tasks can take focus away from planning and strategy
In-house production means that all tasks related to video production are handled internally, which may reduce the time available for other critical functions such as planning and marketing. In particular, it is important to consider the risk that focusing exclusively on video production could lead to other projects and tasks being neglected.
When moving toward in-house production, it is crucial to evaluate these drawbacks in advance and implement appropriate measures. Proper planning and preparation, staff development, and project management are the keys to success in in-house production.
Four ways to bring animation production in-house
There are various methods and approaches for in-house production of animated videos. To effectively implement in-house production, the following approaches can be considered.
Hire experts to support in-house production
Hire new experienced professionals (directors)
Assign existing employees to partner companies
Have existing employees learn through self-study
Let’s take a closer look at each of these.
Hire experts to support your internal team
Seeking assistance from external experts and consultants is an effective way to mitigate the challenges and uncertainties that may arise during the in-house development process. These experts can provide valuable insights and experience throughout the entire process, from planning to execution.
In addition, experts can offer support to ensure the success of in-house development, including providing specific technical guidance, conducting workshops, and offering advice on optimizing the production process.
Recruit an experienced director
In animation video production, the presence of seasoned directors and producers who can lead projects is essential. By hiring these experienced professionals, we can bring valuable knowledge and skills to our in-house production team, significantly improving the efficiency and quality of our in-house production. Bringing in seasoned professionals also helps elevate the skill set of the entire team.
Send existing staff to work with partner companies
One way to quickly incorporate the knowledge and skills needed for in-house production is to send existing employees on secondment to external production companies or partners for a set period of time. Through this secondment, employees can gain hands-on experience in a real production environment and learn specialized know-how and technical skills. Upon returning to the company, they share the knowledge they have acquired, thereby strengthening the foundation for in-house production.
Train employees through self-study and hands-on experience
As a way to enhance skills while keeping costs down as you move toward in-house production, one approach is to encourage existing employees to engage in self-directed learning through online courses and seminars. Through this self-directed learning, employees can acquire the latest video production techniques and trends and apply them to in-house production projects. However, to ensure the quality and progress of this learning, it is necessary to select appropriate learning resources and manage progress effectively.
When moving toward in-house production, effectively combining these methods and approaches is key to the project’s success. Choose the most effective approach based on your company’s internal resources and desired goals.
Steps to establish in-house animation video production
To successfully transition to in-house production of animated videos, a systematic and phased approach is essential. The steps are detailed below.
Appoint a director and build their foundational knowledge
Bring in experts to fill skill gaps
Assign roles for each production stage (illustration, voice acting, music, editing)
Improve communication through team building
Organize and share key information for each production stage
Create small test projects for each stage
Work alongside production companies to learn from their processes
Optimize workflows at each stage of production
Refine and streamline the overall workflow
Appoint a director and build their foundational knowledge
The success of in-house production depends heavily on the knowledge and skills of the director leading the project. It is important for directors to receive training in the fundamentals of video production, project management, and team leadership.
Bring in experts to fill skill gaps
If we lack experience in a particular field, we engage external experts for temporary support or consulting. This allows us to proactively avoid issues that might arise during the early stages of an in-house development project.
Assign roles for each production stage (illustration, voice acting, music, editing)
To produce high-quality animated videos, you need talented professionals in every stage of the production process, including illustration, voice acting, background music, and editing. One approach is to hire these professionals in-house, or to collaborate with external freelancers for specific areas.
Improve communication through team building
Once the team is assembled, building strong relationships and maintaining effective communication among team members are essential for the project to proceed smoothly. Through regular meetings, team-building activities, and transparent information sharing, we create an environment where everyone can work together toward a common goal. At this stage, we clearly communicate the project’s vision and objectives and confirm each member’s roles and expectations.
Organize and share key information for each production stage
We clearly organize the information necessary for production—such as the project’s objectives, brand message, and target audience—to ensure that everyone involved shares a common understanding. This enables us to create video content that is consistent throughout.
Create small test projects for each stage
Before beginning large-scale production, we create small-scale samples at each stage to verify the concept and check quality. This allows us to identify any issues at this stage and address them early on.
Work alongside production companies to learn from their processes
While aiming for full in-house production, we draw on the production processes of external production companies to deepen our expertise in specific stages and technical areas. By incorporating this experience into our in-house production processes, we can establish an efficient production workflow.
Optimize workflows at each stage of production
As the project progresses, we continuously evaluate the methods used in each phase to identify areas for improvement and optimize processes. Establishing an efficient workflow leads to improved quality and cost savings.
Refine and streamline the overall workflow
Ultimately, we will review the entire workflow from planning to completion and optimize the overall process to ensure seamless coordination between each stage. This will enable swift and efficient production.
By following these steps, you can successfully transition to in-house production of animated videos. Keep in mind that each step requires a systematic approach and continuous evaluation and improvement.
Checklist for in-house animation video production
We’ve compiled a checklist in the form of questions to help ensure the success of your in-house animation production. Use this checklist to assess the readiness of your in-house production project.
Have you clearly defined your goals and objectives?
Do you have the necessary equipment and software?
Does your team have the required skills and knowledge?
Is there a plan for training and development?
Do you need support from external experts?
Is there a clear communication plan for the project?
Have you selected project management tools?
Are there processes for prototyping and feedback?
Have you set quality control standards?
Is there a clear production schedule?
Do you have a risk management plan in place?
Are systems in place for regular reviews and coordination?
Have you clearly defined your goals and objectives?
Do you have a clear understanding of the specific reasons for in-house development and the goals you want to achieve?
Do you have the necessary equipment and software?
Have you confirmed the necessary hardware and software, and do you have all the resources required for in-house development?
Does your team have the required skills and knowledge?
Do you have staff within the company who possess the technical skills and knowledge required for in-house development? If there are any gaps, how will you address them?
Is there a plan for training and development?
Are there any educational programs or training sessions planned to address gaps in skills and knowledge?
Do you need support from external experts?
Do you need support from external experts in specific areas? How do you collaborate with them?
Is there a clear communication plan for the project?
Do you have a plan in place to ensure effective communication?
Have you selected project management tools?
Have you selected and implemented tools suitable for project management?
Are there processes for prototyping and feedback?
Do you have a process in place for creating prototypes and gathering feedback in the early stages?
Have you set quality control standards?
Have standards been established to ensure consistent quality for in-house videos?
Is there a clear production schedule?
Is the overall timeline and the schedule for individual tasks clear?
Do you have a risk management plan in place?
Have potential risks been identified, and have countermeasures been developed to address them?
Are systems in place for regular reviews and coordination?
Do you have a system in place to regularly review project progress and adjust the plan as needed?
It is important to use this checklist to verify that the necessary preparations are in place at each stage of the in-house development project and to address any gaps promptly. While in-house development requires significant effort and commitment, proper preparation and management will allow you to maximize its benefits.
Summary: how to successfully move animation production in-house
Let’s summarize the key points so far.
In-house production allows for a rapid response when changes or revisions are needed during the production process.
Compared to outsourcing, in-house production can lead to long-term cost savings once the initial investment is recouped.
In-house production enables consistent project management within the company, leading to greater efficiency and faster turnaround times.
In-house production allows for the creation of videos that are deeply aligned with the company’s brand and message.
In-house production offers fewer opportunities to gain experience with diverse projects compared to external production companies, making it difficult to accumulate specialized knowledge and know-how.
Securing the time and resources required for production is a major challenge when going in-house.
Hiring experienced staff and collaborating with external experts are effective strategies for successful in-house production.
Education and training to improve internal skills are crucial for the success of in-house production.
It is important to clearly define the purpose and goals before starting an in-house production project.
Conduct regular reviews as the project progresses and adjust processes as needed
These points are key considerations when evaluating in-house production. After determining whether your company should produce content in-house or outsource it, use this information to make appropriate preparations and plans.
If you are considering outsourcing, we explain specific methods—such as video production tips and advertising strategies—that cannot be fully covered in this article. Please download the guide from the page below and use it to your advantage.
Marketing Perspective in Japan: Beyond Just Creation
NOKID provides creative planning and production for PR using characters, events, and video content. Effective videos balance business and creative perspectives, e.g., short clips optimized for TikTok, designed to capture attention in the first 2–3 seconds.
For first-time animation or PR-focused content, feel free to consult with us.
Tokuma Kanna
Founder and CEO of NOKID Inc., a premier creative studio specializing in short-form animation and graphic design. With a focus on narrative-driven visual storytelling, he has spearheaded high-profile projects across the global entertainment landscape. His portfolio includes the acclaimed VALORANT: YORU TYPICAL DAYS cinematic, the Hatsune Miku x Seven Premium 15th Anniversary campaign, and Koda Kumi’s music video "100 no Kotoba-tachi e." As a leading producer in the PV and MV sectors, Tokuma continues to redefine the intersection of animation and contemporary digital media.