Our Analysts' Insights

The last few months have been tough on everyone. After a couple months of indecision, many political leaders took the advice of epidemiologists and shut down all but essential businesses. With people ordered to shelter in place, LSPs around the world operated remotely with staff working from home. Our surveys over the last few months have shown the economic impact of the resulting decreased demand and uncertainty about how long they’d be shut down.

CSA Research is preparing to release reports for pricing strategies within the localization industry. We have analyzed current translation pricing models – the structure used for quantifying work, not the amount charged for it – and examined alternatives. We then evaluated what has happened in unrelated industries where technology advances and shifts in customer expectations led to change.

Buyers of language services often focus too closely on their immediate translation and interpreting needs, missing the wider picture – the underlying knowledge that allows the delivery of written and spoken content in multiple languages. But why should buyers and providers care about this short-sightedness?

Anywhere you go around the world, you can find traditional sweets or candy – especially in historic towns or cities where old-fashioned sweet shops are part of the heritage, or where street markets are a big part of local life. Think salt water taffy from San Francisco, halva from the souks of Jerusalem, lokum in Istanbul, chocolates in Bruges, or licorice drops in Amsterdam. You can buy them by the pound, the ounce, the kilo, or the gram. In the UK, those who grew up before decimalization stil...

Soliciting referrals and recommendations is an important sales technique that LSPs should pursue – whether or not they have a dedicated sales force. Yet even proactive referral requests aren’t enough to grow your business sustainably. Every provider needs a healthy supply of pre-qualified prospects to increase its chances of securing new sales. How LSPs find qualified leads varies from one company to another. What works? What doesn’t? Based on 497 responses in a recently published report, CSA...

Language service providers frequently go out of their way to avoid involving procurement teams at client companies or prospects. They fear that working through such groups will be fraught with delays and challenges, especially if their staff knows nothing about language services or forces providers to lower rates beyond their comfort level.

The market for outsourced language services and supporting technology grew 7.99% to US$46.52 billion from $43.08 between 2017 and 2018. When CSA Research analyzed 531 responses to our annual global market survey, we computed that 64% of respondents experienced an increase in revenue. However, all providers don’t share the same experience.

Growth is an evergreen topic for language service providers (LSPs). Those that struggle to increase revenue want to figure out how to formalize their sales function, while those that already have positive sales numbers want to grow more or do it more sustainably. The fourth quarter is sales and marketing prime-time. Not only it is a critical to finish the year strong, but it’s also the perfect time to focus on the year ahead.

Language service providers often tell CSA Research that they struggle to get visibility and brand recognition. They feel that their marketing and sales efforts fall on deaf ears so meeting sales targets becomes difficult.

Despite the reluctance of some executives to hire and train more salespeople, growth for language service providers is closely tied to developing a high performing sales function.