Language Industry Movers and Shakers by Renato S. Beninatto and Nataly Kelly In the course of analyzing developments in the translation and localization industry, Common Sense Advisory sometimes encounters companies that have ratcheted innovation up a notch – by the business model they use, the technology they employ, or the vision they promote. This Quick Take describes four creative companies that are poised to shake things up in the language services space – Adaquest, CSOFT, DotSUB, and ProZ.
Adaquest Relieves Project and Program Management Pains Headquartered in Washington State, Adaquest provides a unique outsourced staffing model for project management services. Here’s how: • No in‐house localization expertise? No problem. The company focuses exclusively on management aspects, but it does not do any of the actual language transfer work, leaving the production to whichever LSPs the client uses. This independence means this provider has no vested interest in which translation provider is used. The buyers using Adaquest’s services do not have in‐house localization departments, but rely on Adaquest as a partner for this work. The project managers from Adaquest become ad hoc members of the client team by offering their services on a temporary or full‐time basis. • Labor law loophole. Many large companies work with contractors, but in the case of some industries – especially high‐tech and software – labor laws can present a problem. After a certain period of time, the tax authorities may consider contractors to be full‐time employees. With large‐scale development projects, releases often slip, and when this happens, employers are faced with only two options – hire the contractor even though he or she will no longer be required once the product is released, or lose this vital resource right when it is needed most. Adaquest provides a solution to this problem. •
Specialist growth strategy. Adaquest has hit on a niche in the market, and the company has grown significantly in size as a result of it, increasing the number of employees from 20 to 45 in the past year. We believe this model lends itself to an array of other possibilities, such as staffing project management resources not only for buyers, but for LSPs. For example, this model could be used not
Copyright © 2008 by Common Sense Advisory, Inc. Unauthorized Reproduction & Distribution Prohibited
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just for translation project management, but for managing interpretation assignments for hospitals, courts, and other settings. What is most interesting about Adaquest’s model is that it highlights the increasing modularity of the content supply chain and the language services that provision it. That lets providers focus on increasingly narrower scopes of service. The success of Adaquest shows that this strategy could make sense for other suppliers with specialized services.
CSOFT Houses its Brain Power in Asia Headquartered in Beijing with 200 employees, CSOFT sets itself apart from most other China‐based companies in two important ways: • Local talent, international focus. Unlike companies that have their key management teams in Europe and North America with operations in low‐cost locations, CSOFT has the majority of its executive management team based right in China. Most of its managers are foreign nationals – hailing from Italy, Romania, France, Sweden, and the United States – but they live in China and are paid premium salaries there. • Beyond the body shop mentality. Many translation companies in China have thousands of employees but generate only a few million dollars in revenue, because they focus on churning out large volumes at very low costs (see “Offshoring Language and IT Services to China,” Jul07). CSOFT, on the other hand, keeps costs at moderate rates but invests heavily in human resources. The company holds a four‐day annual meeting to convene its lead linguists and team members for training purposes. It also devotes a significant amount of resources to building up technical capacity. One of the greatest strengths of many Chinese companies is that the big supply of low‐cost resources enables them to provide lower prices to end clients. CSOFT claims that if it charged the prices of its competitors based in Europe and North America, its revenue would place it among the largest language companies in the world (see “Ranking of Top 25 Translation Companies,” May08). The company’s challenge is to differentiate itself in the market with a focus on quality instead of quantity – namely, the skills and training of its team members. Rather than market itself as a typical low‐cost Chinese vendor, CSOFT can embrace its status as a full‐ fledged, technically‐robust LSP with international reach – that happens to be based in China.
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DotSUB Gives LSPs the Ability to Expand Into Multimedia The possibilities offered by DotSUB are not just notable – they show potential to change the face of the language services landscape. Here’s what distinguishes the company from other LSPs: • Finally, a simple subtitling solution. DotSUB’s application allows anyone to do subtitling on a video in a very simple manner. A process that formerly took days or weeks now takes seconds or minutes. The solution enables users to create subtitles on the fly for any language. Even the smallest LSP or freelancer can become a provider of subtitling services using this application, without relying on a third party (see “JBI Changes Name, Cozies up to LSPs,” Jul08). •
Myriad use cases. The text‐on‐video tool can easily be used with applications such as YouTube, Yahoo Video, and Google Translate. While it is still in Beta, DotSUB becomes extremely powerful when coupled with machine translation. We can foresee use of DotSUB for everything from video depositions taken directly in another language and then subtitled to a podcast from the CEO that is subtitled and sent quickly to offices around the world in 25 languages.
DotSUB is easy to use, quick to install, and completely free. However, its greatest contribution to the language services industry is that it demystifies the use of multimedia in translation.
ProZ Offers a Platform for Collaboration As CEO Henry Dotterer told us, “the value of ProZ is the URL.” The firm’s vision is to create an online community for translation providers – both companies and linguists – where they can do good work and have fun. Other web‐based translator portals are available, such as Aquarius and TranslatorsCafe. However, ProZ stands out from the pack for three main reasons: • The power of the masses. With 250,000 registered translators and around 15,000 logins daily, ProZ is now the largest online resource for locating linguists. It also has between 22,000 and 23,000 registered translation companies. Given its size and scope, LSPs can use ProZ Connect instead of their own databases for vendor management (see “ProZ Connect!,” Jan08). • A true community. ProZ is more than just a web‐based portal for finding language talent – it is an online gathering place where translators and translation companies can meet, exchange ideas, and do business with one Copyright © 2008 by Common Sense Advisory, Inc. Unauthorized Reproduction & Distribution Prohibited
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another. Like other full‐fledged communities, ProZ puts job boards, translation company reviews, glossaries, and other resources at translators’ fingertips. It also rewards active members with KudoZ – similar to how members of the Apache community receive “karma” for contributions. •
Low‐demand language hub. The website has already been fully localized into 89 languages and is partially available in 84 others. When a company uses collaborative translation to make its website available in languages like Cebuano, Kannada, and Sesotho, that’s a pretty good sign it is doing something different from its competitors.
ProZ also has potential to shake up the translation memory space. The community’s archive of terminology queries already exceeds two million, making it one of the largest multilingual term bases developed by language professionals. In the foreseeable future, this platform could be used to enhance translation memory sharing and is already being used for collaborative translation (see “Collaborative Translation,” Dec07).
Language Company Innovators Focus on Differentiation One of the things that all four companies profiled have in common is that they are moving away from the growing pack of LSPs that seem somewhat similar to the typical buyer. These firms have approached the language services market in unique ways and carving out a fresh identity for their brands. DotSUB and Adaquest focus on narrower pieces of the translation process, enabling them to differentiate themselves as specialists in their chosen areas. ProZ has built one of the largest online communities of linguists, giving it tremendous possibilities for collaboration, translation memory sharing, and locating resources for low‐demand languages (LDLs). CSOFT brings great minds and international talent to a low‐cost location while investing in its local resources, to provide good pricing while investing in the knowledge and skills of its workforce. The lesson for competing LSPs is that companies need a clear identity in order to offer value to their customers. No one agency can be a specialist in everything, but all too often, language companies describe themselves as generalists that can take any and every job – from localizing an online retailer’s website to translating a birth certificate. These companies are unique in that they are bringing specialized expertise to their customers, adding to the diversity of the language services market as a whole in the process.
Copyright © 2008 by Common Sense Advisory, Inc. Unauthorized Reproduction & Distribution Prohibited
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