There is the often-repeated meme that animation production gets outsourced to the low-cost providers in the low-cost countries, but in many cases it's not about budget, lower budget, and lowest budget. Often the driver is making a high-quality product that sells, and for that the savvier film producers recognize the need for a work force and infrastructure that gets the job done.
Which, of course, explains this:
New Zealand’s largest CG (computer-generated) animation studio has opened in Auckland.
The Freemans Bay facility is a joint venture between Australian-owned Oktobor (part of the OmniLab Media group) and US company Backyark Animation Pictures.
Its primary client will be US kids network Nickelodeon, for which it will create animated series ...
New Zealand offers production subsidies, but does anybody seriously believe that a government underwriting of a few million dollars makes up for lower labor costs and a weaker currency? I sure as hell don't.
The answer is the same as it's always been: It doesn't do a movie producer a damn bit of good to go to the provider with rock-bottom prices (with talent to match) and create an animated or live-action feature that nobody wants to see. They might not spend a lot of money, but they don't make any money.
Zero or minimal profits is not what the moving picture game is about. That's why there's a lot of vfx production in the higher-rent areas of California. That's why Illumination Entertainment went to Paris for production work on Despicable Me.
Cheap doesn't cut it. Quality does.