Anime outsourcing explained: in-between, second key, CG, and overseas studios
Outsourcing is a long-standing part of anime production. Official sources confirm subcontracting, labor shortages, and overseas work, but a precise global share is not published.
Published: 2026-08-02. Updated: 2026-08-02.
Short answer: Anime outsourcing is the practice of contracting part of production to other studios or freelancers, including in-between animation, second key animation, coloring, backgrounds, CG, and compositing. It is driven by labor shortages, capacity limits, specialization, and cost differences. AJA and METI acknowledge that some processes are sent overseas, while AJA stresses that Japanese production companies remain central and face severe labor shortages. Exact shares of overseas work are not consistently published.
What anime studios outsource and why
AJA describes the mainstream Japanese anime production style as a prime contractor receiving an order from a client and then creating the work internally while ordering work from specialty companies and freelance creators. This means outsourcing is built into the standard model, not an exception.
The same AJA report identifies labor shortages and sharp rises in labor and production costs as the main pressures facing production companies. Those pressures push studios to seek extra capacity and specialized skills outside their own walls.
- In-between animation and coloring: high-volume, labor-intensive frames.
- Second key animation: refining movement when key-animation capacity is limited.
- Backgrounds, CG, compositing, and photography: specialized tools and skill sets.
- Drivers: schedule pressure, labor shortages, cost differences, and division of labor.
The overseas dimension
METI's 2025 anime industry action-plan material states that while some animation production processes are outsourced overseas, many processes are still produced domestically. Academic literature notes that Japanese animation companies have historically outsourced labor-intensive processes, especially in-betweening and coloring, to subcontractors in China, South Korea, and Southeast Asia, and that this accounts for a large share of those particular processes.
The regions named in sources are China, South Korea, and Southeast Asia. AJA does not publish a verified economy-wide percentage of all anime work performed overseas.
Types of outsourcing relationships
Outsourcing can take several forms, each with different control and risk profiles. The form used depends on the studio, the title, and the process.
Arm's-length subcontracting is common for one-off tasks. Long-term partner studios handle recurring work. Some large studios have operated integrated overseas subsidiaries. Freelance creators inside and outside Japan supply specialty skills. Quality control, schedule coordination, and IP security remain the prime contractor's responsibilities.
Business drivers and risks
Outsourcing can expand capacity and access specialized talent, but it also adds coordination cost. AJA's report warns that mid-level and smaller production companies, which rely heavily on production revenue, are especially exposed when costs rise and schedules tighten.
Risks include communication delays across time zones, quality inconsistency, schedule slippage, and margin pressure on subcontractors. Those risks are managed by the prime contractor, not eliminated by outsourcing.
What the data can and cannot prove
AJA's market figures measure broad consumer spending and production-company revenue, not the share of work performed overseas. METI confirms overseas outsourcing exists but emphasizes domestic production remains significant. The academic 70 percent figure refers to labor-intensive processes such as in-betweening and coloring, not to all anime production.
AnimeSignal therefore does not state a single official outsourcing share. Report the scope and source of any number carefully.
The honest outsourcing share answer: There is no official, universally cited percentage for how much of anime production is outsourced. Cite the specific process, region, and source for each claim.
Frequently asked questions
Is most anime made overseas?
There is no clear evidence for that. Some labor-intensive processes, such as in-betweening and coloring, are heavily outsourced, but planning, direction, key animation, and many other stages remain domestic.
What is second key animation?
Second key animation is a step between key animation and in-between animation. It refines movement and drawings and is often sent to partner studios or freelancers when internal capacity is limited.
Does outsourcing lower anime quality?
Outsourcing creates coordination and schedule risks, but quality depends on management, communication, and review, not on the location of the studio.