language services market trends - 2010
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Language Services Market Trends Nataly Kelly Chief Research Officer
Twitter:@CSA_Research, @natalykelly
Copyright © 2011 by Common Sense Advisory, Inc.
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About Common Sense Advisory
Global business and language research
– Translation, localization, globalization, etc.
– Dedicated multinational research team
Independent industry research firm
– Vendor-neutral, buyer-agnostic
– Qualitative and quantitative research
– Interdisciplinary demand-supply methodology
Clients in 30+ countries
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How we conduct research
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1. Growth
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Growth
Common Sense Advisory calculates that the
market for outsourced language services is worth
US$31.438 billion in 2011.
Top 50 = US$4 billion
912 companies surveyed / total LSP population of
25,256
Market growth from 2009 to 2010 (actual reported
supply-side change in revenue) was 7.41%.
Source: “The Language Services Market: 2011,” Common Sense Advisory, Inc.
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Actual reported change in revenue from 2008 to 2009
Source: “Language Service Provider Growth Factors,” Common Sense Advisory, Inc.
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Actual reported change in revenue from 2008 to 2009
Source: “Language Service Provider Growth Factors,” Common Sense Advisory, Inc.
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Technology and experience affect growth
Attitude toward Technology Respondents Average Growth Rate
“We’re for it.” 363 63.94% “We have mixed feelings.” 187 18.33%
“We’re against it.” 18 18.73%
Years in Business Respondents Average Growth Rate 1 to 2 years 53 120.98% 3 to 5 years 114 34.50% 6 to 10 years 164 31.43% 11 to 15 years 137 114.88% 16 to 20 years 117 12.92% 21 to 30 years 85 17.49% More than 30 years 38 8.22%
Actual reported change in revenue from 2008 to 2009
Source: “Language Service Provider Growth Factors,” Common Sense Advisory, Inc.
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Which Services Are Growing the Fastest?
Percent 2010
Percent 2011
Percent Change
Translation 60.16 59.32 -1.40 Multimedia localization 9.48 10.20 7.62 Software localization 18.27 16.56 -9.36 Website globalization 19.64 18.31 -6.79 Technology / software 8.65 6.91 -20.15 International testing / QA 6.18 5.81 -6.01 Internationalization services 6.32 4.06 -35.75 Business process outsourcing 3.85 2.74 -28.76 On-site interpreting 12.36 13.71 10.90 Telephone interpreting 7.42 7.79 5.02 Video interpreting 2.47 3.62 46.41 Subtitling 5.49 5.59 1.74 Voice-over / dubbing / narration 7.42 6.47 -12.78 Transcreation 4.53 4.61 1.70 Other services 5.08 6.14 20.81
Source: “The Language Services Market: 2011,” Common Sense Advisory, Inc.
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2. Fragmentation
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Source: “The Language Services Market: 2011,” Common Sense Advisory, Inc.
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3. Maturity
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Source: “The Localization Maturity Model 2.0,” Common Sense Advisory, Inc.
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Source: “The Localization Maturity Model 2.0,” Common Sense Advisory, Inc.
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4. Vendor Management
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Source: “How Buyers Manage Translation Suppliers,” Common Sense Advisory, Inc.
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Source: “How Buyers Manage Translation Suppliers,” Common Sense Advisory, Inc.
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Source: “How Buyers Manage Translation Suppliers,” Common Sense Advisory, Inc.
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5. Speed
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Global social media
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6. Pricing
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Source: “Translation and Localization Pricing,” Common Sense Advisory, Inc.
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Source: “Translation and Localization Pricing,” Common Sense Advisory, Inc.
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Source: “Translation and Localization Pricing,” Common Sense Advisory, Inc.
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Source: “Translation and Localization Pricing,” Common Sense Advisory, Inc.
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Source: “Translation and Localization Pricing,” Common Sense Advisory, Inc.
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What you need to know about pricing
Language combinations involving some languages have
stabilized; room for price compression still exists for many
languages
Quality matters more for more mature buyers, yet very few
mature buyers exist
Don’t immediately assume the low cost = low quality
What to do about low-cost competition: out-market, out-
sell, and out-perform them
Yes, prices could eventually increase – but it’s unlikely
Source: “Translation and Localization Pricing,” Common Sense Advisory, Inc.
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7. Transcreation
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Transcreation vs. translation
Purpose – evoke a response or reaction
Project types – more limited, marketing & advertising
Providers – specialist LSPs, MLVs, ad agencies
Volumes – less than 5,000 words
Turnaround time – hours or days
Starting point – a creative brief
Resources – bilingual creative writers
Costs – more $$$, billed by hour or project, not by word
Based on 30 interviews and a survey of 380 transcreation participants
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8. Crowdsourcing
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What you may not know about crowdsourcing
Reasons?
– Speed and quality
The people behind it?
– Often not the same people who buy localization/translation
elsewhere in the organization
Why are translators willing to work for free?
– Mostly not translators, but bilinguals with subject matter
expertise
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Three crowdsourced translation models
Cause-driven
– Response to floods in Pakistan, earthquakes in Haiti
– Media – demand for foreign content
Product-driven
– Symantec
– Adobe
Outsourcing-driven
– servioTranslate
– OneHourTranslation
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How translators make money from crowdsourcing
Community moderation
Editing, review, validation
Terminology management
Project management
Recruitment
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9. Machine Translation
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10. Globalization
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Other factors related to globalization
Not only are more of the buyers going global…
More LSPs are too!
Global trade – critical indicator to pay attention to for
language pairs and growth sectors
Content growth and web globalization
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Final thoughts
“The age of the empowered buyer”
– Quality measurement driven by buyers
– More innovation happening on buyer side
– With maturity comes empowerment
Need for innovation and collaboration
– Growth has stifled innovation to a great degree
– Fragmentation has thwarted collaboration in many ways
– Tremendous desire among buyers to throw everything “over the
fence”
How will these trends affect our future strategy?
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Q&A
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Thank you!
Nataly Kelly
+1.978.275.0500 x1203
Research: www.commonsenseadvisory.com
Blog: www.globalwatchtower.com
Twitter: @CSA_Research, @natalykelly
Insight for global market leaders