A Review of the Global Translation Market Place Renato Beninatto COO and VP of Consulting Common Sense Advisory, Inc. Insight for global market leaders Copyright © 2006 by Common Sense Advisory, Inc. All rights reserved.
Bona fides l 20 years making mistakes in the translation business l Last 4 years spent gathering information I wish I had and sharing it with people who don’t want to pay for it l Over 1000 pages of published data about the translation industry l Lots of unpublished data l Absolute independence… to the point of losing money because of it C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
Agenda l Market today l Trends l What doesn’t matter? • Branding and quality l What clients really want C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
Market Data l 87% of translation buyers outsource most or all of its jobs l ≈ 5, 000 companies with more than 5 employees – – 42% U. S. 41% Europe 12% Asia 5% R. O. W. l Outsourceable translation market in 2006 will reach USD 9. 6 billion l We estimate market growth at 7. 5% p. a. C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
Rank Company HQ Country Revenue in US$M Employees Offices Status TOP 20 TRANSLATION COMPANIES 1 Lionbridge Technologies US 405. 0 4000 50 Public 2 L-3 US 372. 3 n/a Public 3 SDL International UK 142. 9 1500 50 Public 4 Trans. Perfect/Translations US 74. 0 385 30 Private 5 RWS Group UK 66. 4 332 8 Public 6 SDI Media Group US 65. 0 200 23 Private 7 Xerox Global Services UK 60. 0 200 4 Public 8 Euroscript s. a. r. l. LU 59. 2 580 10 Private 9 STAR AG CH 52. 0 790 35 Private 10 CLS Communication CH 38. 6 280 14 Private 11 Logos Group IT 36. 5 120 17 Private 12 LCJ EEIG DE/IT/BE/ES 26. 5 159 8 Private 13 Moravia CZ 25. 2 381 9 Private 14 Merrill Brink International US 24. 5 140 4 Private 15 Mc. Neil Multilingual US 24. 3 200 5 Private 16 Hewlett-Packard ACG FR 21. 7 65 6 Public 17 Thebigword UK 21. 0 108 7 Private 18 Welocalize US 20. 5 104 5 Private 19 Skrivanek CZ 18. 5 350 50 Private 20 Vista. TEC IE 15. 6 123 5 Private
Which sectors are buying language services? Technology and medical top list C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
A couple of trends C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
1 – Mid-market heats up l Major acquisitions: Lionbridge, SDL, L-3 l Minor but important acquisitions in 2005 and early 2006: – – – – Merrill of Brink RWS of Eclipse Vista. TEC management buy-out Trans. Perfect of Crimson, Epik and Architext Transware of Global Sight Welocalize of Connect Global and Transco SDI Media of Studio Coto of Lingo. Systems C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
2 – New Technologies and New Service Models • Localization as a managed service (La. MS) • Technology is “free” C O M M O N • Technology rules • Service becomes cheaper with technology • Hybrid solutions – thebigword and Transware • Focus on workflow • Other hosted solutions - Lingotek S E N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
¿Donde están la calidad y el branding? C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
Quality: Translator certification important to 80% of LSPs C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
Quality: Most LSPs have not sought ISO certification C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
Branding – There is no brand if there is no brand awareness – Recent survey: • 100 respondents – all buyers • 289 companies mentioned • Top 3: Lionbridge, SDL, and Moravia – Translation has not had the Keynesian roll -up – Professional services tend to be balkanized C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
In the time it takes for a typical student to graduate from college… Who’s Who in Localization Services? 2005 1. 2. 3. 4. 5. Berlitz Bowne L&H Lionbridge ALPNET C O M M O N 1. 2. 3. 4. 5. 2010 Lionbridge L-3 SDL Trans. Perfect RWS S E N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
What do clients really want? Price Displaces Quality as the Main Criterion for Vendor Selection Question: ”How do you choose your vendors/suppliers? ” [multiple answers] Source: How to Avoid Getting Lost in Translation, Common Sense Advisory, Inc C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
Thank you. Renato Beninatto renato@commonsenseadvisory. com +1. 978. 275. 0500 Don’t miss l Localization Maturity Model l TMS Report l Global Watchtower Insight for global market leader C O M M O N S E A D V I S O R Y, I N C. Copyright © 2006 by Common Sense Advisory, Inc.
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