Forces that will shape the future of LSPs in 2023 and beyond
The end of the year offers an opportunity to look back, cogitate on and differentiate the noise in the industry and business, generally from the signals. While a lot of great things have been happening in our industry, including capital raises, new market entrants, conferences returning onsite, and exciting technology developments, they create a lot of noise. It's imperative for business leaders to stay focused on the signals.
I expect to see the more challenging economic conditions and recession of 2023 play a role in customer spending, decision processes, and investment in the industry. The industry proved quite resilient during the pandemic and bounced back quite nicely. Organizations with solid fundamentals, proper diversification, and wise investment in their talent and infrastructure will be primed for massive growth in the ongoing content boom.
As a result, we will see even more LSPs position themselves as more than just translation or interpreting agencies addressing compliance and security requirements. I expect LSPs to find paths into organizations earlier and position themselves as value-adding outcomes-oriented providers.
The attrition in language talent will be something that LSPs will have to solve as the long-term demand for linguists increases and the sheer volume of communication and amount of communication channels increases. Technology will solve only part of this. The evolution of LSPs will have an outsized role in attracting a new generation of participants to this sector.