Transcript Slajd 1
The annual review of the
language industry trends
Grzegorz Wójcik, MAGIT
Language services market
The global language services
market size: ca. 37.19 bln US$
Market continues to grow:
6.23% (2014), 5.13% (2013),
12.17% (2012), 7.41% (2011)
Expected to reach 47 bln US$
by 2018
Source: CSA , 2014
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Language services market
High fragmentation:
most companies have
below 10 employees
Only 500 companies have
50+ employees
100 top LSPs represent
12.8% of the market (2013)
Over 27500 LSPs*
LSP = Language Service Provider
Source: CSA, 2013/2014
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Language services market – Eastern Europe
Eastern Europe’s share of the market:
- 2.44% (ca. 0.9 bln US$)
- to reach ca. 1.16 bln US$ by 2018
Top 20 LSPs cover 24% of the market
Only CZ, RU, PL private companies
in Top 20
Moravia – leader by far
Source: CSA 2014
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Top industries for language services
Eastern Europe
Shares of top 5 above:
9.3%, 6.2%, 6.0%, 5.7%, 5.6%
Global market
Source: CSA, 2013/14
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Language services market – Eastern Europe,
investments
Investors believe in companies that bring new approach
to servicing translation buyers (Smartling, Gengo,
Safaba) or bring good growth, operational efficiency
February 2015: Clarion Capital Partners, LLC (US private
equity firm) has acquired a majority interest in Moravia
Moravia:
- founded in 1990, Brno, Czech Republic
- 100.8 mln US$ turnover in 2014, 850+ employees
- the first localization company to achieve 100 mln US$
organically (private company)
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Language services market – Eastern Europe,
investments
October 2014: Argos acquires SH3 Inc. and rebrands to
Argos Multilingual
- Argos Translations (Kraków, Poland), founded 1996.
Focus on translations for IT/software and life sciences
- SH3 Inc. (Kansas City, USA), founded 1980. Translation
supplier for the US industrial manufacturing sector
- Before they cooperated for 15 years
- About 100 staff all together
It seems to be the first acquisition of this type
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Language services market – Eastern Europe,
investments
April 2014: XTRF, developer of XTRF translation
management system, attracted the first round of funding:
- XTRF is based in Kraków, Poland
- XTRF has grown 100% annually for the last few years
- Experior Venture Fund provided ca. 1 mln euro for
product and company development
- Experior got a minority stake in the company
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Language services market – trends: online
translation companies
Wave of online translation companies (OTC)
Like Gengo, OneHourTranslation, Tolingo, some based on close to crowdsourcing model
Client friendly workflow
Go online -> get a quote instantly (cost calculators) -> pay in advance by credit card -> get your
translation quickly (track the progress online)
Online localization platforms
Like Transifex (a cloud-based localization platform) or Lokalise (apps, games or websites) –
platforms (subscriptions) + can supply translation teams
OTCs start with focus on shorter, simpler jobs
But then try to add premium services and reach also big clients
Will OTCs replace "traditional" LSPs?
Will they cause the “Uber” effect?
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Language services market – trends: online
translation companies
Gengo introduced "performance transparency". They publish
online raw data on customer satisfaction and first response time
MemSource: integration with "Gengo human translation engine"
Source: Gengo website, 15 March 2015
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Language services market – general trends
Global resource competition
Translation services can be done using linguists from anywhere in the world. It results in more
competition and lower rates.
Levels of quality, "good enough"
More clients started to accept several levels of quality – depending on type of content, markets
needs and intended purpose.
Shortage of resources, scalability problems
In certain areas of the market LSPs can not find enough resources to handle clients’ needs.
The technology impact on revenue: MT and platforms
- MT is widely available. Volume of post-editing MT jobs increases. Often PEMT cannibalizes
revenue from human translations.
- The next wave of easier-to-implement software for translation management (such as Easyling,
Memsource, XTM, Smartling, and Transifex). They help to decrease (or even eliminate) staff.
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Thank you.
Questions?
Grzegorz Wójcik, MAGIT
[email protected]