Globalization Fuels Growth for Translation and Interpreting Firms, Even in Times

of Recession
New Study from Common Sense Advisory details the characteristics of fastest-grow
ing language services providers.
Boston, MA – December 23, 2010 -- The language services industry experienced doubl
e-digit growth throughout the economic downturn. So why do some translation and
interpreting companies increase revenue at breakneck speeds while others fail to
gain momentum? A new report from market research firm Common Sense Advisory, “Lan
guage Service Provider Growth Factors,” explores this question.
The report, based on revenue data for 839 language service businesses over three
fiscal year periods, shows that growth rates are influenced by an array of fact
ors including location, attitude toward technology, acquisition strategies, and
service expansion decisions.
“We noticed a clear correlation between the location of the company and their abil
ity to achieve high rates of growth,” observed report lead analyst Nataly Kelly. “Co
mpanies based in Northern Europe, Eastern Europe, and Asia outperformed provider
s in other regions, including North America, perhaps due in part to the weakened
state of the American economy.”
Key research findings include:
Translation firms that embrace technology come out on top. Companies that are in
favor of technology grow nearly three times as fast (63.94%) as companies that
have mixed feelings about it (18.33%) and companies that are against it (18.73%)
.
Mid-sized LSPs are growing faster than competitors. Suppliers with between 21 an
d 50 full-time employees (FTEs) reported a staggering growth rate of 157.33% for
the three-year period from 2008 to 2010.
Overall, Northern European firms report the fastest growth. Their average growth
rate – a whopping 153.51% – is nearly double that of the next fastest-growing regio
n, Eastern Europe (79.28%). Asia also displayed strong performance, with a growt
h rate of 39.75%, followed by North America (27.23%).
Some countries in Eastern Europe also show impressive growth. Ukraine topped our
list of the fastest-growing countries with a growth rate of 471.43%. Fellow Eas
tern European country Hungary was the nation with the second-highest rate of gro
wth (141.67%).
“The good news is that a translation company’s attitude toward technology appears to
shape its destiny, no matter where it is headquartered,” Kelly points out. “This is
also positive for the end clients, since technology typically reduces costs and
improves efficiency, making it possible for them to convert even more content t
hat would otherwise never be translated.”
The report includes several takeaways and roadmaps for LSPs, including 10 sugges
tions for language service business growth and lessons from the world’s largest LS
Ps.
For more about “Language Service Provider Growth Factors,” and the firm’s research, vi
sit www.commonsenseadvisory.com.
About Common Sense Advisory
Common Sense Advisory, Inc. is an independent research and analysis firm special
izing in the on- and offline operations driving business globalization, internat
ionalization, localization, translation, and interpretation. Its research, consu
lting, and training help organizations improve the quality of their global busin
ess operations. For more information, visit:€www.commonsenseadvisory.com or€www.twit
ter.com/CSA_Research.
Contact:
Melissa Gillespie
Common Sense Advisory
Boston, MA
+1 760-522-4362
melissa@commonsenseadvisory.com
http://www.commonsenseadvisory.com